I haven't gone anywhere Gavtech. The last period has called for some quiet reevaluation of how Range are playing their cards and I have to say I've not been pleased. Range is giving the impression that they are creating a lot of value for a small group of individuals. They?re bringing management risks into sharp focus and their 2 main projects in Somalia and Georgia already REALLY high risk (did anyone notice how close the Georgian blocks are to Ossetia which was occupied by the Russians recently). I'd prefer to be dealing with straight shooters instead of the cloak and dagger brigaide.
I'll restate the rant I posted on Interactive Investor a week back.
If Smith#1 produces up to 1000bopd and 12Mcf Range as we've been lead to believe I don't understand why Range are issuing another 30m shares. There were project costs attributed to the 180m issued through entitlements - we knew what the cash was needed for. There's been no announcement explaining why ?870k is needed so quickly. Are they looking at an opportunity? Did they duff the funding figures for an existing project? There?s no value here for existing shareholders, only opportunity for more people to get in cheaply at the expense of the rest of us.
Old Park Lane Capital is owned by Perth mining circle cronies connected to Range execs from back in the day. The 30m shares may well go out to the old boys club who are free to talk shop themselves over a pint while PI's wait in the cold for news. The only people that win if 30m are issued are the people that get those shares at 2.9p. An altervative theory is the AiM market makers were caught short and oversold stock they didn't own. Either way PI's are the losers.
If II's have been tempted to the table then they should bl00dy well buy in the open market. I for one would certainly like to see heavy buying pressure for Range stocks, not further (unexplained) dilution.
30m shares will be issued subject to shareholder approval. They make it sound like a democratic process. The major shareholders will decide and rest assured that Range knew which way they intended on voting before this announcement went out. They wouldn't expose themselves to the embarrassment of having it voted down (unless they're really poor players).
When did directors last dig into their pockets for shares? Not in the last 18 months. Put your hands in your pockets boys.
Africa Oil haven't completed funding for Puntland. They're 35m short of the funding needed for their 2010 drilling program. Like it or not, the odds of Puntland going ahead to schedule lengthen daily until that happens.
Where will the cash come from to drill Georgia? After today?s announcement I don't expect Range to do the right thing by most shareholders (prudent management of spending, careful feeding and watering of smith to start sustaining development of bigger projects). Expect them to either farm out or do another RI. Either way it's dilution. I want Landau to prove me wrong on that but hope for the best while assuming the worst will happen.
My hope is that Range is taking advantage of the long term SP trough to load all their buddies in before the long and steady upswing gets underway. The other upside is the RI is capitalizing the company for exploration not paying off debts. You could add more positives to the list but I can't think of many more that are not speculative.
Offshore isn't looking a dead cert anymore either.
RRS Price at posting:
6.2¢ Sentiment: LT Sell Disclosure: Held
