Range Resources. Hotting Up in the City!

Shares in Range Resources (RRL), which I have blogged on several times on the BMD site, are surging ahead as canny investors pile into the stock ahead of drilling in Georgia {onshore{ (spud April) where the company will be testing 750 million barrels of oil equivalent of upside. After that, the campaign moves on to the onshore  exploration in Puntland, Somalia where Range are partnered with Africa Oil who are  scheduled to spud the first well before the end of the second quarter of 2011, and where the upside potential is in the billions of barrels. Range has already established itself as a producer in the US (Texas) but the upcoming drilling activity could lead to a company-changer for investors/company.

As foretold here on the blog the 25p minimum target is nailed on and investors should see this as a base for an increasing sp once it is breached and breached it certainly will be!. The 50p minimum target in the run up to pre Georgia/Puntland is looking ever more likely as City watchers look on as investors zero in on Range. It is now widely being accepted from within Brokerages that Georgia and Puntland are potential “game-changers”.

And as past history should have taught investors potential and expectation are drivers of company value. I recall posting on Encore and Nautical,Xel,Gkp,Chariot etc at various periods that they could be going Major and major they now are. I am now beginning to think that Range Resources are increasingly looking likely to at the very least treble from where they now are pre-Puntland/Georgia the value indicators here hold much potential. There just seems to be a certain inevitability about them. The exact same inevitability that has seen meteoric rises for Nautical,Encore,GKP etc.

They were one of the best performing stocks of 2010 and are also in Trinidad Range’s Range of plays has been well thought out.

The key here for serious investors is research.

Investing and holding here for Georgia and puntland should be the objective.

They are currently still trading way under-value given the weight of interest that is certainly going to begin to keep ratcheting the sp ever upwards. The Markets are expecting a busy few weeks as investors begin to switch on here.

Any success in Puntland and Georgia and you can kiss good bye forever to the 60/70p pre spud sp that some analysts think could be reached.

Range Resources could be going Major and a 300p/500p share price isn’t out of the question all depends on Puntland and Georgia!

Better inside the tent pissing out then outside the tent pissing in! They are on the march. Eyes on here!

Viva!

Daniel

NB* Can we have a few searches now and then? Cheque  goes out Monday to our favoured charity!*

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  1. john says:

    Dan you have been saying mta is due news, yet it hasnt come. You are being proved wrong on them and bloggers wont follow you if you are wrong

    • Brokerman says:

      The news is well overdue on Matra. It is generally accepted that Matra news is imminent.
      Our hands are tied. The ball is in Matra’s court. They are aware that they need to update as of two weeks ago.

      Dan

      • Lt says:

        Typical Matra indeed. The delays can surely only be down to prolonged problems. Will they ever learn to update the Market?

      • Lt says:

        Typical Matra, no news in this instance can only be that things are taking longer, why? Because they encounter problems pretty much each time they touch a well. Cannot believe they do not have news to issue re A13? Does it take a month to build up pressure in order to obtain the flow potential?
        A12 was due to take 4-6weeks, the rig was mobilised in December last year. A month ago we were told the sidetrack was WELL underway. Appreciate the weather is grim but these guys are used to the weather and the rigs are designed to work in these conditions. So why the delay in updating the Market??

  2. jonty says:

    Thoughts on CAD? Hardman and co put a value of 115.2p on the shares with an oil price of $80 but we’re around $100 so do you think CAD is worth about 140p?

  3. Joseph says:

    Thanks dan , mta are behaving as expected unfortunately .:-C

  4. Rosalimacat says:

    OEX. Any help Dan.
    Thanks Steve.

  5. 13thMonkey says:

    I’m amazed there’s so much interest in a company that has prospects in Somalia! This is a country that is a hair’s-breadth from anarchy, and people are expecting range to be able to produce oil from there? All seems a bit unreal.

  6. OILBUG says:

    one note of caution re rrl if the exploration wells fail in anyway this share will fall by 25 to50% . I understand the US operations hold value etc but still some could say a good buying time.

    All depends on the first results but for a high risk punt its a great share.

  7. B1GGZ says:

    Great update on Range Dan.

    I hope you could look into HER and DPL which I mentioned not long ago.
    HER have just started drilling 2 days ago and were talked about being SHARE OF THE YEAR 2011 , and prospects look very good.

    Also DPL holding BLOCK 7 offshore Tanzania, where TULLOW made serious large discoveries. This is DPL’S acu up its sleeve apparently, so a big discovery hear could send it rocketing just like RRL.

    Both very very encouraging and ones you may want to put into you £1 Million pound challenge for sure !

    Thanks

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