Range Resources (RRL) – Back on the Up !!

by Michael on August 8, 2011

In the last few weeks share tipsters have probably been keeping their heads down. There have been quite a few days where not a single one of the shares in my portfolio has not been a bright shade of red ! Long walks with my faithful Border Collie puppy are required in order to switch off from the doom and gloom that is pervading the market.

What was it that Warren Buffet said about when people are scared …. ? Anyway, trying to step into Mr. Buffet’s shoes,  I did get greedy last Friday and topped up with a favourite share of mine Range Resources. It may have luck but it was good timing as they raced ahead in the afternoon and today they are my only share that is still ahead.

Range Resources Limited (“Range” or “the Company”) is both an ASX-listed (ASX: RRS) and AIM-listed (AIM: RRL) exploration and production Company, with its principal activities directed towards finding and delineating hydrocarbons in Puntland, Somalia; the Republic of Georgia, onshore Texas, USA and Trinidad.

With the planned onshore exploration drilling program in Puntland and Georgia coupled with the exploration and development programs in Texas and Trinidad, Range is well on its way to establish itself as a diversified international oil and gas exploration, development and production company with significant upside potential (Quoted from their website).

Today, there was some news provided as to why this recovery in their share price looks like it has started. I like particularly the phrase “EXCEEDED EXPECTATIONS” (read below). I will write some more later on RRL but in the meantime here is the RNS:

First Well Success in Trinidad

International oil and gas exploration, development and production company,
Range Resources Limited (“Range” or “the Company”) is pleased to announce that
in the two months since completing its Trinidad acquisition, the Company has
successfully drilled its first development well on the Morne Diablo Block.

As part of the initial 21 well drilling program, the MD 247 well was drilled to
a total depth of approximately 900 ft using the Company’s own drilling rig and
personnel. Despite the shallow depth, open hole logs indicate the presence of
roughly 145 ft. of net oil pay in the shallow Forest Formation, an established
producing horizon on the block. Casing is currently being run in the well in
preparation for production testing next week.

Added Peter Landau, Range’s Executive Director, “The successful drilling of the
MD 247 well indicates that Range’s aggressive program to increase production
and cash flow in Trinidad is on track and the first pay zone size has exceeded
expectations. As previously announced, we will be adding a second and third rig
to the remaining 20 well 2011 drilling program in order to begin exploitation
of deeper producing reservoirs. The MD 247 well is only the beginning for us in
Trinidad, but represents an important milestone for Range as our first
internationally operated well, drilled and completed by the Company’s own
operations team using our own equipment.”

The Company looks forward to keeping our shareholders updated as our drilling
program continues in Trinidad, Georgia, Texas, and Puntland, in what will be an
exciting period for Range with wells being drilled on all four the Company’s
assets in the coming months.

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