summary of feedback from shareholder meeting

The following is a summary of all the posts on iii, LSE and ADVFN here in the UK made by people who attended the Shareholder meeting in London today

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Puntland will happen, for all the naysayers, everyone over there is positive and pushing it forward, Range, RMP, the government, even AOI. Do get the feeling PL has lost most of his hair tearing it out over Africa Oil being a bit slow but the key point was that whilst there will inevitably be delays it WILL happen.

Current highlights:

* RMP will be able to/will buy their extra 10% by end October (deadline was extended)
* Range shareholders will all have the opportunity to get involved with the placement if they wish, initially just on ASX but they will be dual-listed by the end of the year
* Final drilling contracts are being signed at the moment
* Rig mobilisation should be announced in November
* Spudding of Maroodi-1 in Jan/Feb 2011 (maybe make that Q1 depending on delays)
* Nugaal is likely to spud around Q2 2012 but this may change depending on results in Dharoor e.g. brought forward if we hit oil earlier rather than later
* Offshore is unlikely to have any impact on SP for 2-3 years and probably won't happen for 5 years
* Don't worry about the PSA, so long as they see activity, government are keen to extend it
* Private operators tend to be very cautious about their drilling so will leave Smith at current flow
* RB#1 is now connected and we should have news on Mon/Tues about the flow rates
* It will be left un-fracced for 2-3 months due to difficulty sourcing frac teams
* Looks bigger than Smith but don't expect an updated reserves report until mid/late September
* 3rd well due to be spudded in Nov, likely be similar to Smith
* Drilling will continue indefinitely at the rate of about 3-4 well p.a. in oredr to provide some regular income and under-pinning of SP
* Cotton Valley should have 3-4 month payback
* Horizontal well to start drilling in Sep

Georgia
* Seismics going well with 6 targets identified and being reduced down to 3 now
* Logistics are being put into place as we speak and so they will be ready to spud first well as soon as it is identified (before end of year)
* Oct/Nov they will decide how to progress with Georgia, they can't fund Puntland at same time so may need to raise a couple mill to help out or arrange a drilling partner

Trinidad
* Used to be a sort of ATM, in Pete's words, for a couple of Texans producing $1m a year regularly. One of them got ill and they decided to sell out
* Could go lots bigger than it already is and is easy to expand
* Can be drilling 3-4 wells at any one time and turn around smaller ones (100 bbls a day) within a 5 day period (drill, connect, production boom!!)
* We will get monthly updates from November due to the high activity in this area
* Monitor want to dual-list on AIM too and once again Range shareholders will be offered part of the placement
* For further details on potential look at Parex Resources and their results with Herrera, right next to us

He was at pains to point out that there are no current plans for any further fundraising at this point (certainly nothing major), although if SP was to hit around 12-14p then that could be a good price from which to top up. As I said, I think they may need a couple of mill for Georgia at some point.
Also there is no way they would consider a share consolidation either, since it is inappropriate for this sort of company.

Not sure about Trinidad but Texas NCR is likely to be making $2.5-3m per well per annum
That's free and clear profit to Range!

Suggestion from Pete is that rig mobilisation is going to be THE big event announcement for Range which will really push it to the next level. As I say this isn't due until November but that doesn't mean some of the other news won't kepp it ticking up or at least stable!

Good price for the company to top up their funds, if they needed to, because they get same amount of money but a lesser dilution.
They may just farm out a portion of Georgia and not bother fundraising, really depends on how things look at the time and they may not need to make that call until next year.
Pete seems to be of the opinion that Range is worth around 200m vs current market cap of 63m and we should start to see some of that once rig mobilisation is announced.

I shall repeat, if there is any dilution required, via shares or farmout, then it won't be for major amounts. 2m as a percentage of a 200m market cap? Think that's about 1% if my maths serve me right!

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Re rig mobilisation in November. Was there any suggestion that rig mobilisation will be announced after the event - I.e. Once the rig is actually in place?

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If you are referring to the security risks, then no. The announcement should coincide with the rig actually being mobilised, although AOI will be taking precautions as to route, etc..

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Was discussed but Pete just said they won't be declaring the exact route the rig will be taking (it won't be paraded up the streets of Bossasso either) so no security issues with announcing as and when it happens.
They had their local dealmaker from Puntland there and he was explaining how this area really is very (relatively) safe and stable compared to Mogadishu and other areas. They have had 11 years of stability & autonomy with 3 changes in government, it really is about as good as it gets in Africa.
Also once the oil starts flowing Puntland is likely to have more power over the rest of the country to start calming things down.
BTW due to the tribal nature of Somalia, clashes in one area rarely cause trouble elsewhere, tribes don't go out of their own areas much and certainly don't hold any sway to cause major problems elsewhere. Tribes in this area are very supportive of the oil campaign.

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Did PL say anything specific about,why they are in London right now (talks witk IIs...)

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Apparently Pete is in London for reasons unrelated to Range (other companies he is involved with).

No reason not to take that at face value in view of the content of the presentation (e.g. no imminent requirement to raise significant funds)

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Good point. Pete said that he is over here for business regarding his other directorships and involvements (not really on Range business) but given that they are now 65%-ish AIM wanted to give the UK shareholders a chance to meet and greet.
Similar thing in Perth resulted in a small turn out and maybe 2 or 3 questions, here he got an absolute grilling!! But came out and well, he's a true blue Aussie with the attitude to match and was incredibly open about what's happening, where the delays are, chances of success etc.
Very impressed and much reassured that my money is in good hands!!


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Interestingly Pete Landau was non-committal regarding the above. Options included:

1. Relying on revenue generation from Texas to fund future drilling costs (based upon an aggressive drilling campaign in Texas bring in an additional 2.5m p/a net to Range per well at very little cost);

2. A cash-call to private investors at an unspecified point in the future (currently 11 cash-in hand sufficient to fund initial commitments for at least one of Georgia / Puntland); or

3. A placement to an institional investor (to stabilise share price through reduction of day-trading)

Food for thought...

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PL today said three times he thinks RRL market capital should be worth 200,000,000 It was a most positive meeting, I have to go and pick up my boy now but am sure others will post interesting and possitve feedback. I for one will not sell one share. GLA

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