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OilVoice Morning Movers - Range Resources, Lamprell and Max Petroleum
Friday, June 08, 2012
Range Resources (LON:VOG) announced this morning that it has a significant increase in reserves on a Texan project.

The estimated undiscounted net cash flow value to Range, based on the proved and probable reserve numbers, is $254 million (£164.7 million), up from $202 million in October 2011.

The AIM listed company said with the drilling of the Smith #2 and Albrecht #1 wells, gross current average production from the field increased to approximately 4.5 million cubic feet of gas per day and 394 barrels of oil per day.

Peter Landau, Range's Executive Director, said: "We are extremely pleased with the recent results from our Texas drilling programs, which has confirmed what the Company had strived to do in increasing shareholder value through the increase in the Company's share of Proved and Probable reserves from the North Chapman Ranch Project. This now paves the way for the Company to commence divestment of the Company's interest in the project during Q3 2012. The sales prices of similar production assets in the region have been encouraging, and any such divestment will provide significant funding that could be applied to Range's current activities and other possible corporate initiatives such as an on market share buy back."

Range Resources is currently trading at 8.33 pence a share, up 13.22% on opening.





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Range Resources Puts Hydrocarbon-Rich North Chapman Ranch Asset for Sale

Range Resources Limited has commenced preparations for the sale of its interest North Chapman Ranch Project in Texas, United States, following a reclassification that saw an increase in proven and probable reserves of the said hydrocarbon acreage, the company disclosed to the public, Friday.

The Australia-incorporated oil and gas exploration and production company hopes to dispose its 20%-25% interest in the North Chapman Ranch Project by the third quarter of 2012 “so that it can focus its capital on higher value adding opportunities in its portfolio.”

“Any such divestiture decision will be based on market conditions and the ability to achieve a sales price that appropriately reflects the value of the project interest,” Range Resources stated.

Increased Reserves

Based on the review submitted by independent petroleum consultancy firm, Forrest A. Garb and Associates, the North Chapman Ranch Project saw a 64% increase in proven oil reserves, from 5.1 million barrels reported in December 2011 to 8.4 million barrels as of June 2012.

The same report also indicated new estimates of 106 billion cubic feet of proven gas reserves, representing a 65% rise from the previous estimates, and additional three million barrels of natural gas liquids to eight million barrels in proven reserves, also for the same period.

Range Resources' net attributable interests in oil, natural gas, and natural gas liquids subsequently increased by 57%, 54%, and 57%, respectively, net of government and overriding royalties.

The percentage increase in Range Resources' attributable interest, however, did not change proportionally with the increase in "physical volumes" due to "significant reduction in the futures gas price since the previous report", the company explained.

Nonetheless, the company’s net attributable interest is valued at US$165 million in undiscounted cash flow and $93 million at 10% discounted cash flow for its proven reserves alone, based on the Nymex forward strip price as of 7 March 2012.

On market share by back, what do you make of that DC?

Oops! Fell asleep, what's going on? Really looking forward to the Diamond Jubilee celebrations this weekend! :o)

Wrong time of year to hibernate kim!! Sounds llike you could have celebrated too much last weekend.

Last weekend? When was that haha! :o)

A nice finish, a few more days like this and we may see double figures.

Sorry 3m been out this aft. Happy new year kim.

Pl did say in the presentation the cash would be put into Colombia. We have also been promised a buy back and dividend ?perhaps some of these will come in time. Seems a
lot of promises to stretch $60 - $70 million dollars. Has been talk of $100 million.

A very good TT RNS Monday morning could see us through 10p. From the presentation TT sounds to be going well.

The buy back has been mentioned most recently so I would think that would be first on the list rather than a dividend.

Dividends can come later. Just wonder if most of it will be put to use in Colombia.
As long as it is all in shareholder interests , sounds good.

Also hope Range get the Puntland side of the business split for shareholders fast.
The other assets can drive the sp forward. I think the split will be good for Range
shareholders. Then the leverage for Puntland will match RMP. Also shareholders will not keep jumping to and fro to RMP.

Horn 1.3235 up 0.0395 (3.08%)

I just hope it carries on going up and they don't do a b.awful consolidation. Rained all day here and hasn't stopped since Tuesday afternoon - great.

I just hope it carries on going up and they don't do a b.awful consolidation. Rained all day here and hasn't stopped since Tuesday afternoon - great.

We need the rain down here. You must have a nice green lush lawn, that would or should be brown this time of year.

Your welcome to it, I shall leave you some full water butts in my will. Got webbed feet here.

No consolidation. A buy back would be better, only after re investing cash into Colombia. Cannot see the point in giving a dividend or share buy back only for the company to come at shareholders in 6 months for fund raising.

Yes it is lush, green with plenty of moss and the poor plants/shrubs/trees etc. are all drooping with the weight of water. I has advantages but lots of disadvantages.