PhosPleb has raised some very pertinent questions. The answers...

Phos

Pleb has raised some very pertinent questions. The answers to those questions will help to establish a framework from which you will be able to make your own balanced judgements.

RRS is a potentially volatile investment, although the volatility has disappeared of late. This has been partly due to general market turbulence, partly due to political uncertainty and partly due to the timeframes before drilling commencement. Admittedly, the price could weaken to say 40 cents on light volume in the short term, although the upside has been put at between $1.17 and $7 by various analysts over the course of this year.

There is also the potential for soverign risk to be factored in, but that is balanced by the possibility of very significant rewards. Generally speaking, the company has been de-risked to a large degree having achieved all objectives set out 2 years ago. It has ticked all boxes regarding its agreements with the Puntland Government and Consort Private, it is fully funded, it is AIM listed, and it has a JV in place that will see $50 mill spent on exploration over the next few years with commencement around Feb 2008.

RESEARCH
In order to assist newcomers such as yourself in their research on Range Resources, a primer has been made available. It consists of info that has been gleaned from company reports and public documents. It is a good place to start in order to form a balanced view of the company. It can be accessed via the following link.

Click Here: Range Primer Update2

At 50 cents the price does not reflect any premium to the leveraged position the company enjoys into multiple reservoir targets that are measured in the billions of barrels of oil category.

In closing, I would remind you that it is imperative to do your own research and to take responsibility for your own investment decisions.

Regards
Nev