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RANGE RESOURCES
KARL MOUNT
Posted: 13 November 2012 18:35:34(UTC)
#1

Joined: 13/11/2012(UTC)
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Anyone investing in RRL.
Am tempted to take adventurous risk in long term investment.
|Has received various reviews, most say 'buy' but most of the time i check it's 'sell sell'
Maybe another company similar, suggestions please.
Lee Whitehead
Posted: 14 November 2012 11:19:39(UTC)
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I am invested as I think the fundamentals are in place. AIM stocks with long term potential, but underpinned by producing assets are rare.

Loads of info to come, Texas sale, buyback, improved fiscals for Trinidad, more wells - both shallow and horizontal, potential Puntland offshore find and Georgia.

At the risk of sounding like a ramper, I think it is seriously oversold at the moment based on negative sentiment and lack of news flow, that said, I expect things to snowball once fiscals have been agreed.

I have 250,000 shares in there at the moment for the long term and am sleeping fine despite them appearing on paper at a loss, I am very close on my average.

As always, if your appetite for risk is low or you are emotionally affected by general market maladies then maybe best avoided until you see a change in trend, but for me personally, based on my research, my money is where my mouth is, but DYOR
1 user thanked Lee Whitehead for this post.
KARL MOUNT on 14/11/2012(UTC)
Graham D-C
Posted: 14 November 2012 14:43:53(UTC)
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I am holding off from making any investments until after the 1/1/2013 when the U.S. wil have decided on the measures taken to reduce budgetry and borrowing debts.Together with the ongoing EU debt crisis, they could have quite a sobering effect on global markets in 2013.

IF you are looking for investments in or related to the energy sector, the following are worth researching, albeit their prospects are a lot less frivolous than 'adventurous'. GEEC, ANR, CRA. In other sectors, STCM, SPL, EKF, are also worth researching.
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KARL MOUNT on 14/11/2012(UTC)
jeffian
Posted: 14 November 2012 17:50:13(UTC)
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The financial bulletin boards are littered with this sort of thing put it's the first time I've seen a stock-specific query here.

I freely admit that I know absolutely nothing about RRL but an AIM-listed resources explorer prospecting in Somalia (have they even got a legit Government?) with a share price graph that starts in the top left-hand corner and ends in the bottom right-hand one tells me all I need to know! Karl says he likes an "adventurous risk". This should suit him fine, then. If this one doesn't pan out, there's always the gee-gees or Russian Roulette to keep the interest going.

Good luck!

8-)
Lee Whitehead
Posted: 14 November 2012 18:24:30(UTC)
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jeffian;16871 wrote:

I freely admit that I know absolutely nothing about RRL but an AIM-listed resources explorer prospecting in Somalia (have they even got a legit Government?) with a share price graph that starts in the top left-hand corner and ends in the bottom right-hand one tells me all I need to know!


And that is specifically why I bought in - Puntland produced two dusters onshore and market sentiment was low, partners Horn & RMP also reflected this - people got carried away with the prospect of finding oil and when they didnt... it dropped like a stone. The difference with RRL is they have assets producing in Trinidad above 1000bpod a day and they have an offer underway for the sale of Texas to the tune of $20m initial payment and $20m in royalties.

A share price consolidation is proposed, to be underpinned by a share buyback from the company to offset short selling using some of the proceeds of the $20m sale.

Have a look at the last report from the company.
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KARL MOUNT on 14/11/2012(UTC)
BILLFISH
Posted: 14 November 2012 23:45:47(UTC)
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Joined: 21/02/2012(UTC)
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If you invest in Range Resources you first of all have to understand what you are investing in.

Range Resources is one of a stable of resource companies run by serial Aussie financier Peter Landau out of his parent company OKAP ventures.

http://www.okapventures.com/

This outfit suppports a number of resource companies in diverse areas such as coal,oil, and now silver is the latest trick added to the pack. OKAP have no expertise - other than finance in any of these industries and rely on outside contractors to actually deliver anything.

The problem is that Landau does not seem to see the distinction between these companies.
The Range shareholders - having suffered the indignity of seeing their share diluted out of all recognition ( 2.4 billion shares in issue - 1000bpd production) were incandescent when Landau announced that he had lent $2m of their fast dwindling cash to another company in the stable Continental Coal while simultenously placing their shares on the market at ever decreasing prices.

Range have never in their history discovered a drop of oil anywhere ever.

Their initial story was based on a "King Solomon Mines" story that Conoco had discovered vast quantities of oil in Somalia and had to give it up as the country descended into chaos.

http://www.cod.edu/peopl...malia/exploring_e10.pdf

This project took ages to come into fruition and in the meanwhile they acquired 40% of Straight Oil to kick off the Georgia project.

With the onset of the financial downturn Range struck a deal to liberate their Texas assets from a finacially constrained partner for $1million giving then a 20% interest in the Texan wells. This was the first evidence of any income albeit as a minority patner in an existing producing asset.

Similarly the Trinidad asset was purchased for over $100m as a distressed asset from a couple of waring partners who had let the asset decline as they fought with each other through the courts. These assets are basically delpeted oil fields abandonded by the oil majors which the wee boys pick over to eke out small amounts of already proven oil

As these assets were built up Range issued more and more shares based on the Puntland story.

Well sooner or later the baloon had to burst:

Georgia drilled straight into a slab of granite half way down the drill that seemed to have been completely invisible on the seismic to the contractor they had hired to do the job for them.

Result: oil exploration abandonned after half a well, contractor fired, new contractor appointed and a complete rework of the project into a low value coal bed methain project years away from generating any revenue.

Puntland

Farmed in AOI (Africa Oil) to operate and fund the first exploration wells. AOI is a Lundin company and they are no fools so they created a subsidiary company Horn Petroleum to handle Puntland ( selling almost half of Horn before it even got started).

These two wells were both dusters and the Range shareprice tanked as a result.

What of "the King Solomon Mines" story about Conoco - well it remains intact as the two wells drilled in Puntland were drilled in the Dharoor valley which is nowhere near where Conocco were drilling in the Nugaal ,which by the way, is still in a disputed area and is currently undrillable.

The much touted Puntland offshore deal is still at the MOU stage and shows no sign of advancing after the latest elections ( cost to Range - $5m to tarmac a runway somewhere in Puntland!!!!)

Trinidad
This is run by a guy called Walter, the country manager, who was inherited as part of the deal. This guy holds the future of Range in the palm of his hand as the entire company is dependent on Walter getting the production figures up before Range get through the cash from their latest SEDA arrangement.

Trinidad on its own would probably succeed and become quite successful. However Landau compensates for his lack of knowledge and understanding of the companies he runs by being a hyperactive deal maker.

The latest done deal is for a Columbian asset slap bang in the middle of the previously Farc held area of Columbia. There have even been rumours of yet anyother deal with Frontera in Georgia.

He is even talking now about spinning the Puntland assets out into another company called "Rover".
Now some companies become dogs due to the actions of their managements but naming a company spun out of Range after a dog is taking the michael just a wee bit.

So the bet on Range is for Walter to get the Trinidad production up and generate cash faster than Landau can squander it on some other hair brained under-researched scheme.

How does he get away with it you may ask? Check out the corporate governance.
Range has a Chairman, NO Ceo and NO Cfo. They have no committees, audit, remuneration etc. They have a loose collection of executive directors all connected to OKAP who manage the company on their blackberries.

If there was ever a company where you had to DYOR then this is it.

If you are looking for an oil company with many, many multiples of the exploration upside of Range, with 40kbopd of production and exposure to some of the more exciting exploration frontiers you may want to take a look at AFREN. But DYOR as what it says on the tin very often bears no relation to what the tin contains
7 users thanked BILLFISH for this post.
KARL MOUNT on 15/11/2012(UTC), jeffian on 15/11/2012(UTC), Guest on 17/11/2012(UTC), Guest on 17/11/2012(UTC), Kenpen2 on 17/11/2012(UTC), Buyhighselllow on 22/11/2012(UTC), bill blayney on 15/04/2013(UTC)
KARL MOUNT
Posted: 15 November 2012 05:48:32(UTC)
#7

Joined: 13/11/2012(UTC)
Posts: 2

Thanks: 5 times
BILLFISH;16875 wrote:
If you invest in Range Resources you first of all have to understand what you are investing in.
Thanks for info, already invested in AFREN.
Range Resources is one of a stable of resource companies run by serial Aussie financier Peter Landau out of his parent company OKAP ventures.

http://www.okapventures.com/

This outfit suppports a number of resource companies in diverse areas such as coal,oil, and now silver is the latest trick added to the pack. OKAP have no expertise - other than finance in any of these industries and rely on outside contractors to actually deliver anything.

The problem is that Landau does not seem to see the distinction between these companies.
The Range shareholders - having suffered the indignity of seeing their share diluted out of all recognition ( 2.4 billion shares in issue - 1000bpd production) were incandescent when Landau announced that he had lent $2m of their fast dwindling cash to another company in the stable Continental Coal while simultenously placing their shares on the market at ever decreasing prices.

Range have never in their history discovered a drop of oil anywhere ever.

Their initial story was based on a "King Solomon Mines" story that Conoco had discovered vast quantities of oil in Somalia and had to give it up as the country descended into chaos.

http://www.cod.edu/peopl...malia/exploring_e10.pdf

This project took ages to come into fruition and in the meanwhile they acquired 40% of Straight Oil to kick off the Georgia project.

With the onset of the financial downturn Range struck a deal to liberate their Texas assets from a finacially constrained partner for $1million giving then a 20% interest in the Texan wells. This was the first evidence of any income albeit as a minority patner in an existing producing asset.

Similarly the Trinidad asset was purchased for over $100m as a distressed asset from a couple of waring partners who had let the asset decline as they fought with each other through the courts. These assets are basically delpeted oil fields abandonded by the oil majors which the wee boys pick over to eke out small amounts of already proven oil

As these assets were built up Range issued more and more shares based on the Puntland story.

Well sooner or later the baloon had to burst:

Georgia drilled straight into a slab of granite half way down the drill that seemed to have been completely invisible on the seismic to the contractor they had hired to do the job for them.

Result: oil exploration abandonned after half a well, contractor fired, new contractor appointed and a complete rework of the project into a low value coal bed methain project years away from generating any revenue.

Puntland

Farmed in AOI (Africa Oil) to operate and fund the first exploration wells. AOI is a Lundin company and they are no fools so they created a subsidiary company Horn Petroleum to handle Puntland ( selling almost half of Horn before it even got started).

These two wells were both dusters and the Range shareprice tanked as a result.

What of "the King Solomon Mines" story about Conoco - well it remains intact as the two wells drilled in Puntland were drilled in the Dharoor valley which is nowhere near where Conocco were drilling in the Nugaal ,which by the way, is still in a disputed area and is currently undrillable.

The much touted Puntland offshore deal is still at the MOU stage and shows no sign of advancing after the latest elections ( cost to Range - $5m to tarmac a runway somewhere in Puntland!!!!)

Trinidad
This is run by a guy called Walter, the country manager, who was inherited as part of the deal. This guy holds the future of Range in the palm of his hand as the entire company is dependent on Walter getting the production figures up before Range get through the cash from their latest SEDA arrangement.

Trinidad on its own would probably succeed and become quite successful. However Landau compensates for his lack of knowledge and understanding of the companies he runs by being a hyperactive deal maker.

The latest done deal is for a Columbian asset slap bang in the middle of the previously Farc held area of Columbia. There have even been rumours of yet anyother deal with Frontera in Georgia.

He is even talking now about spinning the Puntland assets out into another company called "Rover".
Now some companies become dogs due to the actions of their managements but naming a company spun out of Range after a dog is taking the michael just a wee bit.

So the bet on Range is for Walter to get the Trinidad production up and generate cash faster than Landau can squander it on some other hair brained under-researched scheme.

How does he get away with it you may ask? Check out the corporate governance.
Range has a Chairman, NO Ceo and NO Cfo. They have no committees, audit, remuneration etc. They have a loose collection of executive directors all connected to OKAP who manage the company on their blackberries.

If there was ever a company where you had to DYOR then this is it.

If you are looking for an oil company with many, many multiples of the exploration upside of Range, with 40kbopd of production and exposure to some of the more exciting exploration frontiers you may want to take a look at AFREN. But DYOR as what it says on the tin very often bears no relation to what the tin contains

Kenpen2
Posted: 17 November 2012 12:28:38(UTC)
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BillFish,

That's one of the best posts I've ever read in my 5 years on Citywire - Thanks !

What do you know about LGO ??

Cheers.

BILLFISH
Posted: 18 November 2012 20:05:16(UTC)
#9

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Kenpen2
I do not know much about LGO.
They are run by David Lenigas, a bit of a controversial character.

He was until recently chairman of Lonrho, resigning in September this year.
There was a bit of a barny earlier on this year at Lonrho when one of the other directors resigned over a massive hike in Lenigas's salary.

In his capacity at LGO he got a bit of a red face earlier on this year from one of his previous companies Mediteranian Oil and Gas. LGO had 10% of a licence with MOG offshore Malta which LGO sold to MOG for $1. Within a matter of days MOG then sold 75% of this license to Tony Hayward's Genel for $10 million. In fact Genel's rock man ,John Hurst, mentioned it at Genels recent investors day presentation,praising the way MOG had worked up the play.

Lenigas used to be chairman of MOG so he seems to have taken his eye off the ball here in his capacity as executive chairman of LGO with regards to getting full value for LGO's shareholders from this asset.

LGO are currently in the process of selling off their various assets to fund the development of the Goudron field in Trinidad.

Here they are planning to raise output from this field by working over old wells and drilling new infill wells.

The Trinidad gov are in the process of revising their fiscal terms to stimulate an increase in production there.

LGO have published figures of 700,000 barrels for proven reserves and 7,200,000 barrels for proven plus probable reserves. This is less risky than some of their previous assets but it is a slow laborous process to get the daily production figures up to anywhere near the level they need to be at to support a company with fully diluted shares in issue of just over 2 billion.

That is the sum of my LGO knowledge. As I said it is not a company I follow just a few bits of scuttlebut that knocks arround the oil E&P world.

As pointed out by a previous poster their share price graph starts high on the left and heads downward to the right.

Says it all really.

I hope this has been some help to you.
Dividend Income investor.com
Posted: 20 November 2012 09:29:37(UTC)
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I am not invested in Range and have not considered them for a number of reasons.

As a dividend income investor 75% of my assets are in high quality (previously) historically undervalued dividend paying companies throwing of increasing dividends.

The remainder of my assets are in more speculative companies such as in several oil explorers which expect 'transformational' company making events in the near future (2012/13), including AEX
and TANG (both prospective mega farming-in situations), whereas MOG has secured its farm-in deal with Genel for some of its Malta assets (almost quadrupling its share price from bottom to farm-in announcement), and still has a number of other assets to explore and exploit.

As always DYOR; this is crucial for these types of opportunities.

Steven Dotsch
Managing editor
Dividend Income Investor.com
1 user thanked Dividend Income investor.com for this post.
KARL MOUNT on 22/11/2012(UTC)
Lee Whitehead
Posted: 18 February 2013 14:46:40(UTC)
#11

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So anyone compared the respective fortunes of RRL & LGO now? now read back on these posts and reassess which is the most positive, I am glad I am where I am
jeffian
Posted: 18 February 2013 15:08:15(UTC)
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Except that the original question didn't make a comparison with LGO, it just asked whether RRL was a sound investment. As it happens, it's just managed to crawl back to exactly where it was when the question was asked!
jeffian
Posted: 15 April 2013 09:17:04(UTC)
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There you go.

"15 April 2013


PRECAUTIONARY SUSPENSION

Range Resources Ltd ("Range" or the "Company") wishes to announce that its
shares have been placed into a precautionary suspension on the AIM market until
such time as it can issue a clarification announcement in respect of a
potential significant transaction. Range's shares have also been placed in a
trading halt on the Australian Securities Exchange."
jeffian
Posted: 30 August 2013 09:48:50(UTC)
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I don't particularly follow this stock but whenever I see something about it, I remember this thread! I commented previously here that "a share price graph that starts in the top left-hand corner and ends in the bottom right-hand one tells me all I need to know! ". I caught sight of it again today and note that anyone investing at the time of the initial post 9 months ago would have lost a further 50% of their money. I'm reminded of a Jim Slater(?) quote - "A share which has lost 90% of its value is a share which has lost 80% - and then halved!"
Ben T
Posted: 19 September 2013 15:07:21(UTC)
#15

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well for sure this company has lost a lot of money for investors - from over 20p to 2p (!) with newbies trying to pile in hoping that it won't keep falling! Admittedly been following it myself but will satisfy myself staying on the sidelines for now.
jeffian
Posted: 11 November 2013 18:00:12(UTC)
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Well I see this company's share price continues the relentless march into the bottom right hand corner of the graph (new low today). Now down 60% since first 'tipped' here.
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