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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

yawn.,.

Please...Dreamcatcher......something interesting.....not that waffle....

Going to be very interesting to investors, far from waffle.

Australia day today, holiday no ASX.

http://www.rangeresources.com.au/fileadmin/user_upload/research_Reports/RRL_26_01_12.pdf

evening dc - intersting developments - i have to admit i am not a fan of anything leni but heyho we'll see - have a good evening

TRINIDAD & TEXAS UPDATE

Range Resources Limited ("Range" or "the Company") is pleased to announce the
following updates with respect to its operations in Trinidad and Texas.

Continued Success for Trinidad Operations

Range is pleased to announce continued drilling success as it ramps up its
reserves production drilling program on the Morne Diablo concession in onshore
Trinidad.

Following the successful logging and completion of the QUN118ST well, initial
production testing has seen the well producing at a rate of up to 102 bopd on a
5/32" choke under natural pressure from the shallow Forrest formation and has
stabilized at approximately 84 bopd.

The Company is extremely pleased with the initial production results of the
QUN118ST well as it follows on from the recently completed and producing
QUN116ST which is currently producing circa 30 bopd under natural pressure (at
the top of the target range of shallow 1000 ft wells of 15-30 bopd) with an aim
to put the well on pump, after further decline, to increase the production rate
to an estimated 50 bopd.

As previously announced, the QUN 117 well encountered both the Lower Forest and
Upper Cruse objectives, which we believe may extend eastward of the existing
wells, and confirmed the Company's predictions that the current well program
would extend existing fields. The Upper Cruse section was placed on production
with initial production rates of 81 bopd under natural pressure. Like the
QUN 116ST well, this well will be optimized and likely be placed on pump and is
forecast to produce upwards of 50 bopd, whilst still maintaining the Lower
Forest zone potential which is planned to be exploited at a later date.

Rig 2 has moved to the QUN 119 location and is drilling ahead at 1,100 ft with
a TD of 2,400 ft and targeting the Upper Cruse and Lower Forest Sands. Well
logs have been taken over the Lower Forest interval and are indicating
approximately 280 ft of good oil sands with 100 ft of these sands
displaying higher quality potential for better than expected flow rates. These
results are extremely encouraging as indications are that the multi zone
producing trends previously encountered in the QUN 117 well appear to continue.

Rig 5 has been prepared to join the current operations and will be targeting
its first well, QUN 120 for the Lower Forest Sands in the coming weeks.

Rig 8 currently awaits regulatory inspection which is expected shortly and will
be targeting the deeper Middle and Lower Cruse formations, whilst Rig 1 has
been awaiting replacement drill string, expected to be received shortly, at
which point in time the Company will have four fully operational drilling rigs
rapidly advancing the Company's current drilling program on Morne Diablo.

Exploratory drilling for deeper targets is programmed for 2012, following
reprocessing and interpretation of the Company's 3D seismic database, which is
scheduled to be completed early / mid February.

Texas - North Chapman Ranch

The Company would also like to announce that the joint venture has run 9 5/8"
casing on the Albrecht #1 well and is drilling ahead at 11,302 ft, just above
the Anderson Formation, with a proposed target depth of 14,500 ft. If
productive, the Anderson Formation could add significant reserves to those of
the Howell Hight Formation, the primary field pay at North Chapman Ranch.

Completion work continued on the Smith #2 well with the perforation of the
lowest zone, or "E" sand. Immediately following perforation, 5,500 psi of
pressure was recorded at the surface, indicating virgin reservoir pressure at
the Albrecht location. The well is scheduled for fracture stimulation early
next month, along with first production and sales.

The Albrecht # 1 appraisal well marks another milestone in the Company's
onshore Texas drilling program, as if successful, it is anticipated to prove up
reserves in the South East portion of the North Chapman Ranch license area, and
support a re-classification of current Possible (P3) reserves into the Probable
(P2) and Proved (P1) categories.

Following on from the Albrecht #1 well, the joint venture has the option to
continue with the development of the field with a possible four-well program in
2012 under discussion among the joint venture partners.

Texas - East Texas Cotton Valley

On the East Texas Cotton Valley prospect, operator Crest Resources has received
approval from the partners for fracture stimulation of the Ross 3H Horizontal
Well, and is in the process of scheduling the frac work and subsequent testing
this quarter, which is expected to confirm commerciality of this shallow oil
field.

Yours faithfully

Peter Landau
Executive Director

See your comments about Leni gibby. I gather from an few posts the management are not liked. Looks like Range will come out well from the deal. It will be good to see the day the city like Range for its other assets other then Puntland. No doubt the day will come. Good weekend gibby and all. Good RNS today.

Nice to see TT get a move on now, as its well behind schedule. There was talk of 300 odd staff, sounds like one on the drill and the other 299 making the tea. There is a large wage bill running up. I thought we would be a lot further on by now. Hey ho give it a few months then it would be fairer to make judgement.

all going good here dc imo - leni - i am just not keen on his hitoric deals one bit i'm afraid - maybe he has got this one right for a change - he has to get it right once out of a hundred i suppose LOL - even the law of averages is in his favour this time!!! i had a good weekend till i heard the name leni again lol!! only joshing - hope you had a good weekend also - roll on tomorrow :-))

Been a good weekend as well gibby. yep agree roll on the next few weeks.

ghood to hear it dc - yes should be better than today here

Range and partners have been drilling Puntland 14 days today. Be interesting if we get any leaks in news not Hc's. :-)). See you done well on the gg's gibby drinks all round?
lol

Quarterly Report for Period Ending 31 December 2011

DECEMBER 2011 Quarter - Highlights

* Spudding the first of two historic Puntland exploration wells in the
Dharoor Valley

* Placement completed raising approximately $6.32 million AUD

* Site construction underway for second exploration well in Georgia