I'll be nice and assume they'll get $100m for Texas. But once that cash is spent, there'll be a proportional decrease in share price to represent the fact that it's no longer on the books, so unless it's spent wisely it won't help Range. Again, taking 8x earnings as the benchmark, for a $100m spend you'd expect increased cashflow of over $12.5m a year to make it worthwhile. Landau said 1000bopd would generate $12m cashflow, so that's about the ballpark Range would be aiming for, which to be fair sounds achievable. But then again so did 21 wells by March, and 1400bopd after year 1 (it is now 1 year since the asset was purchased, with precious little increase in production). Don't forget they'll be obligations in Puntland, Georgia, and Colombia too- that $100m could get eaten up quickly especially considering the rate Range burn cash.
Regarding Puntland, well as said the jury is still out. It'll take a while to monetise either way though (more appraisal wells needed before a takeover, or alternatively a very long road to production).
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