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Range Resources (LON:RRL) Red Emperor (LON:RMP) – Taking Georgia Forward: Today’s announcement from Range & Red Emperor regarding the CBM accumulation within its Georgian acreage resolves one of the two outstanding issues that has beset both companies, i.e. what’s happening with Georgia? The Deal with GIG is a major step forwards in two respects for both companies as it (i) alleviates one of the key issues regarding its portfolio; (ii) provides the prospect for near-term cash flow; and (iii) means that neither company have to continue to pay for the acreage as the partner will take it forward. Given the nature of CBM production (potentially long lead times before any one well attains peak flow), we are maintaining our carrying value for this asset within both companies. Following this news, we are reiterating on Range Resources our BUY Recommendation and 25p Target Price, and on Red Emperor BUY and 48p.

encouraging days :-)))