brokermandaniel-rrs

http://brokermandaniel.com/2011/10/01/range-resources-how-shallow-is-shallow/


I’m going through all the recent contacts,notes,research we’ve had on Range Resources while trying to put yesterdays flare up into perspective.

Investors should note that Range and Red Emperor began yesterdays rise almost simultaneously. Lots of different bits and pieces coming in at the moment. Both companys are tied at the hip re Georgia. So it’s NO coincidence that they both began to rise. News/rumours of hydrocarbon shows have been doing the rounds in the city and online. There are some who make valid points, lots of emails saying that the drill is too early for oil shows. Now I disagree on this point, for thus reasons. It’s generally now accepted that the drill is speeding up since the collar problem was resolved.

If you do some quick research you’ll find that most of these plays in Georgia are based on previous Russian drills which in the most were drilled to relatively shallow depths, to define structural features identified from surface geological mapping, and to assist in planning the location and design of water reservoirs. Deeper wells were drilled for the purpose of detailed identification of the stratigraphy of the area. Many of these wells encountered oil and gas shows, in which case they were shut in and abandoned without testing.These shows were at shallow levels. So the question is how shallow is shallow? Much of the work carried out by the technical staff of Strait in Georgia has been to collate information from diverse databases/shallow drills and to integrate the data into their own regional interpretation.

It’s not beyond the bounds of reason that Strait have encountered some form of oil/gas show when bearing in mind that oil shows in shallow drills in Georgia were the norm when the Russians were drilling this area. Of course it’s mere speculation at the moment. Even so the Range sp has risen as has RMP. There must be some basis or kernel of truth otherwise both companys would not have risen. The current market value of Range is significantly below where it should be this is in part due to funding,dilution,leverage concerns and of course the world financial crisis that lurches from pillar to post on a daily basis. Indeed the LSE has just announced their worst quarter for 9 years so set against a background of macro geopolitical financial turmoil, companys will suffer until stability returns. An interesting point here is that the Nomads have contacted their respective companys so as ever news will leak out next week. Any expectation of an oil discovery here will certainly spike the stock back up to previous 20p levels. If they hit oil then it should go ballistic. It’s all getting very interesting at Range Resources.

{footnote from me,d3t...I have got a blocked ear from treating it for wax..put too much oil drops in, so tip of the day.."READ THE LABEL"}