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Fox Davies Capital Update

Range Resources (LON:RRL) Limited (BUY, 27p) (RRL LN, 11.25p, ► 0.0%) and Red Emperor Resources (TRADING BUY, 19p) (RMP LN, 18.25p, ► 0.0%) have announced that site construction has commenced in readiness for the spudding of the second exploration well in Georgia, the Namakhvani well at the Kursebi 6 Prospect. Spudding is expected in early to mid February now that Range have reviewed all seismic and geological data across the top 3 Kursebi prospects, given the unexpected geology encountered at the first exploration well, and Kursebi 6 has been identified as the most robust prospect. The estimate for undiscovered STOIIP for the prospect is 99.2 Mmbbls (mean). Range has a 40% interest and Red Emperor a 20% interest in the prospect.

http://www.naturalgaseurope.com/range-resources-shale-gas-concessions-georgia

Anyone know what all these LC trades are at 7p and 8p ?

Don't know but the same is happening in a few shares ie OTC, SYNC + others..

Thanks gb, and xtr. Would not mind if 30p. :-)

uncrossing trade / sets auction ?

A bit late bit "LC" trade.

'LC' Late Trade Correction
A correction submitted more than three days after the trade date or where deferred publication is permitted at any time after the trade report was submitted to the Exchange reporting system.

Thanks skinny.

yep late corrections - bit of a flat day here but thats ok another day nearer - saw your fd update dc - fd a bit low imo but hey ho

Evening gibby, better to be low, then we can sail by it. :-)). Seen tonight Range are looking for new farmin partners for Georgia ?

From SPIKEY DT http://www.derrickpetroleum.com/2012/01/24/range-resources-seeks-farmin-partners-for-two-georgia-blocks/

ASX - Being held in a trading range, like the uk no movement.

Trinidad - Partnership with Leni Gas & Oil Plc

Amended RNS - PARTNERSHIP AGREEMENT IN TRINIDAD - amended to link with Leni Gas & Oil Plc

StockMarketWire.com
Range Resources has formed a partnership with Leni Gas & Oil to jointly develop their interests in the Eastern Fields Area onshore southern Trinidad, including the Goudron and Beach Marcelle fields.

It will acquire a 30% interest in Goudron E&P in return for contributing $4m at completion.

For a further contribution of $4m during the first 12 months following completion Range will increase their holding to 50%.

Thanks to pealexporter on 11, an explanation of todays deal. Leni, something like 40% up today and Range well you can guess.





I have only just seen the RNS - I have been on a rather uncomfortable nightbus from Montevideo to Florianopolis. Anyhows, let's break down this RNS as simply as possible:

LGO were pretty much broke and couldn't afford to develop their licences alone. PL had the cash and all the cards, thus he has been able to drive a deal that favors RRL much moe than LGO. Today's market reaction may not reflect that currently - when investors break down the numbers later they will see it favours RRL massvely. We have provided the cash for a really rather wonderful deal. $8M (presuming we get to 50%) for 50% of 21.8 mmbbls of P1,P2 and P3. Oh, and also another set of rigs will be mae available that I am sure can be used on our current licences too now. However, it's not about the current known reserves on this new acreage. People are only just starting to catch on with Trinidad's real potential, it will be about the deeper Herrera and UC plays. That is were the real value of this acquisition lies I would suggest.

Now, the man at the top of LGO is a nasty piece of work in my eyes, but upon achieving 50% we (RRL) will take over as operators, so David will cease to matter too much rom this point. In regards of LGO's option to purchase 15% of Beach Marcelle water flood for 50% exta in costs (they pay 22.5%). I have no real issue in this. It will free up a little bit of money for us in other areas (LGO paying up to $7M) and still allows us massive exposure to the water flood upside - with 85% still. We still have complete control of our other two licences and we will very much be calling the shots in this partnership.

This deal also strengthens our position massively in Trinidad and shows that we really mean business here for a long time to come. We have an excellent royalty in place for each barrell of oil and I believe the same deal will apply in this new acreage too. Also, remember how the Offshore Trinidad licences are coming up soon, i onder how much this strengthens our hand here. We are obviously demonstrating our commitment and long term deisire to operate within Trinidad.

Another very good long term deal for RRL-ers I would honestly say. Some will not see the real value of course, many spent months ridiculing our initial Trinidad acquisition - which is now worth multiples of our initial purchase before we even look tothe Herrera and UC CPR.

Have faith all - another step forward today I believe. Puntland, Texas and Georgia may well be sold off at some stage, but I genuinely believe that this is more proof that Trinidad will be the backbone of RRL for many years to come....

Oil & Gas Sector:Market gives mixed reaction to Leni Gas & Oil and Range Resources partnership
StockMarketWire.com
Leni Gas & Oil (LON:LGO) and Range Resources (LON:RRL) received mixed reactions to their partnership to develop interests in the Eastern Fields Area onshore southern Trinidad.

This includes the Goudron and Beach Marcelle fields.

Shares in Leni Gas & Oil were up by more than 51% in late afternoon while Range Resources (LON:RRL) saw its share prices fall by more than 4%.

Range Resources will acquire a 30% interest in Goudron E&P in return for contributing $4m at completion.

For a further contribution of $4m during the first 12 months following completion Range will increase its holding to 50%.

LGO will operate the Goudron field during the initial work-over phase, but subject to Range exercising its option to acquire a total of 50% in GEPL, Range will become operator during the infill drilling and water flood phases.

Range will obtain an accelerated return through 75% of the revenue interest until its initial investment is recovered.

LGO will have the option to acquire a 15% interest in the Beach Marcelle waterflood project by contributing 22.5% towards the development costs (i.e. paying a 50% promote), up to US$7m, towards the development costs.

Leni Gas & Oil
Full Leni Gas & Oil profile here

Leni Gas and Oil plc is an international oil and gas exploration, development and production company headquartered in London, trading on the FTSE AIM All-Share. The Company has assets in the US Gulf of Mexico, Spain, Trinidad, Hungary and Malta. LGO’s strategy is to deliver growth through the acquisition of proven reserves and the enhancement of producing assets in low risk countries.
Range Resources and Leni Gas & Oil team up in Trinidad
Thursday, January 26, 2012 by Jamie Ashcroft Range Resources (LON:RRL, ASX:RRS) and Leni Gas & Oil (LON:LGO) have today agreed a tie-up to jointly develop onshore oilfields in Trinidad.

The deal will see Range taking a 50 per cent stake in LGO’s Goudron oilfield by spending US$8 million. And LGO has an option to acquire a 15 per cent stake in Range’s Beach Marcelle project by spending a maximum of US$7 million.

Range already owns a number of producing assets nearby and this tie-up gives it additional reserves and production growth in Trinidad, while LGO gets sufficient cash to buy out Goudron’s previous owner and take the project forward.

LGO struck a deal to buy the Goudron field in October 2011, agreeing to pay US$9 million for Goudron E&P Ltd – which has exclusive rights to acquire the production contract for the field.

The company can now take control of the asset and start a work-over programme to regenerate the old oilfield, which was first discovered in 1927.

“This agreement marks a turning point in our growth in Trinidad since we now have access to full funding for the acquisition and the first phase of the Goudron field re-development,” said LGO chief executive Neil Ritson.

He added: “A close collaboration with Range offers some significant synergies and we look forward to working closely to develop further opportunities."

Initially Range will pay US$4 million to acquire a 30 per cent stake in Goudron E&P Ltd. It will be able to increase its stake to 50 per cent by spending another US$4 million in the first year of the partnership.

The arrangement also gives Range an accelerated return on its initial investment, with it taking 75 per cent of the field’s early revenues.

“The Goudron field has enormous potential for increased production and reserves and by collaborating closely with LGO we anticipate additional benefits and synergies moving forward," said Peter Landau, director of Range Resources.

He adds: “The opportunity is of particular importance to Range as it is in the final stages of choosing an appropriate debt financing facility to develop the major aspects of our Trinidad operations for the next 18-24 months.”

The original Goudron oilfield development comprised 150 wells. It is estimated to host 21.8 million barrels of reserves. The wells have in the past produced from two reservoir formations at depths between 300 and 3,500 feet.

Less than 100 barrels of oil are currently produced each day at Goudron.

The new partnership plans to work-over the wells, including hydraulic fracturing, to raise the field’s production up to around 4,000 barrels a day. It is also believed by the partners that there is further potential in deeper reservoirs and through the use of secondary recovery techniques like water-flooding.

The partners say that production will rise steeply over the first six months of operations.

Today’s tie-up also gives LGO the opportunity to partner Range on the nearby Beach Marcelle block.

Range aims to start production from Beach Marcelle using water-flood techniques in 2013. It hopes the field will produce 5,000 barrels a day by 2015.

LGO will cover 22.5 per cent of the development costs, capped at US$7 million, to earn its 15 per cent stake in Beach Marcelle.

Additionally the new partners say that they will work collaboratively to optimise and extend their joint interests in the Eastern Fields area in Trinidad. The two AIM quoted firms have a number of assets in the country.

LGO shares soared on AIM following the news, gaining 0.32p, or 40 per cent, to trade at 1.14p each, while Range shares fell slightly to trade at 11p each.

Range currently has two highly anticipated exploration programmes underway in Somalia and Georgia. Drilling began last week on the Shabeel-1 well in the Puntland region of Somalia, while the location of the Namakhvani well is currently being prepared.

I think Peter L is way ahead of the city boys in deal making and understanding Range resources. (Sorry gibby :-) ) Lets face it they were only luke warm to the TT deal and must now see the full potential.. This deal has now been put forward for the deal of the year award.

Lenigas near skint so desperate for a deal. Mr L has the cash and no doubt will achieve a great deal for rrl share holders.

The Goudron field - PL has said the field has enormous potential for increased production as it only produces about 100 barrels a day. Plan to take this to 4000 a day with hydraulic fracturing etc. we will take75% of the fields early revenues.
I just also wonder if the deal has been done on the current p1,p2,.p3 reserves.(only a guess)
I think Lenigas shareholders have gained today, we will gain a huge slice of the pie in the future. No doubt another fantastic deal.

Thanks to great ROOM on 11



13:56 From PL Great_Room 29





I questioned PL about David Lenigas, highlighting his reputation amongst many investors. Also asked if there was an operational plan already in place with regards to using the 5 workover rigs in Beach Marcelle. Here is his reply:


Too early - we are now completing technical / operational DD -could be a great add on for us given our significant infrastructure in place - will not comment on Lenigas (not my place and have never been directly involved before) - our only interest is in the asset and the value proposition to range and our shareholders