theory- another drawdown starting?, page-9

I would not have thought it is all for future Georgia drills either- just exploring possibilities. It would certainly make sense to have a few million spare in the bank to drill future wells after the first couple though, as the dilution is negligable at this stage because the drills are so cheap. I've got confidence oil will be found early, but it makes sense to hedge your bets by raising money while the sentiment is good.

So I would have thought, assuming PL thinks along the same lines, that a small percentage of the cash is for future drills, but the majority of it is for a new project- either offshore Puntland, an increased stake in Trinidad, or something else entirely.

Whatever it is though we'll be getting a good deal- of that I have no doubt.

I don't mean to say this will happen in the near future, but let's say we got a couple of offshore blocks which are as prospective as the onshore ones. Then let's say we find oil in Georgia/Puntland and so can afford to proceed with offshore on a 100% basis (no reason we couldn't if we had good cash flow from Georgia and a market cap of ?700m+).

If we got 2 blocks, each with 10bn barrels (if the blocks are geologically analogoes to Yemen, this is certainly achievable- Chariot Oil and Gas have achieved similar seismic results on 3 of their blocks in Namibia based on the blocks being analogous to the ones in offshore Brazil), with 30% recoverability, that's 6bn barrels net to Range. At $5 a barrel, that's $30m market cap, or roughly ?20bn. Potential 100 bagger from here if we got it right and that's not even factoring in onshore Puntland, Georgia, and the other projects.

Will take a few years to shoot the seismic and get a rig down there, but if all goes well this year, there's no reason that Range couldn't be a seriously major oil producer at some time over the next decade.

Plenty of hurdles to overcome before we can think of values like that mind you- but all these massive oil companies were tiny at one stage. We've certainly got the acerage to hit the big time, one day.

I'm sure there's plenty who think it will never happen, and perhaps rightly so- but then again XEL was 3p just a couple of years ago. 330p now.