Range Resources expected to produce raft of "exciting news flow"...

Range Resources expected to produce raft of "exciting news flow" in second half - analyst -

http://t.co/hOS58t4

3:38 pm by Giles Gwinnett

He rates the stock a "buy" and targets a share price of 27 pence
With an intensive drilling programme across four countries Range Resources (LON:RRL, ASX:RRS) is expected to produce a raft of "exciting news flow" over the second half of the year, according to analyst Barney Gray at broker Old Park Lane Capital.

He rates the stock a "buy" and targets a share price of 27 pence.

"Range augmented its production base significantly over the quarter ended 30 June," said Gray, in a note today, following the firm's publication of its quarterly report.

"In particular, the company completed an exciting acquisition of producing assets in Trinidad and a work programme at North Chapman. Ranch has boosted output in Texas significantly," he said.

The firm revealed today that it was targeting a significant increase in production levels in Trinidad over the next few years.

Subsequent to quarter-end, it has begun its 21 development well program in Trinidad utilising three of the company's rigs and is targeting an increase in production to between 1,400-1,800 barrels of oil per day, and an increase and reclassification of reserves along with extending the limits of the existing fields.

In Georgia, the company, along with its joint venture partners Strait Oil & Gas (UK) Ltd and Red Emperor Resources (LON:RMP, ASX:RMP), in mid-July, spudded the joint venture's first highly prospective exploration well - Mukhiani in Block Vla in Georgia

Following the completion of Mukhiani 1, the rig will move on to spud the second exploration well as part of the two well drilling program.

In Puntland, the operator of Range’s acreage, Africa Oil Corp, is finalising the appointment of a drilling contractor for the first exploration well in a two well programme and the company expects that mobilisation for exploration drilling could commence in the third quarter, it said.

At the North Chapman Ranch in Texas, operator Western Gulf Oil & Gas has signed a contract for a drilling rig to drill a third well in the field, currently scheduled for mid-October. Discussions as to the location of a second 2011 well are currently underway.

During the quarter the company successfully completed a capital raising of US$49 million before costs, with the majority of the money used for the acquisition of the Trinidad assets.

"Range’s progress in Trinidad and Texas has de-risked the business significantly. However, the company retains exciting near term exposure to highly attractive exploration plays in Georgia and Puntland.

"We believe that Range’s portfolio has struck an important balance between production, development and exploration," said analyst Gray.