invest chronicle 7 oil share that could rocet

Created: 10 March 2011 Written by: Martin Li

Oil and gas explorers provide one of the fastest routes to triple-digit returns. Although picking the winners can be difficult, previous successes have left many clues to the signs to look for.

In part two of this feature, we look at seven of the hottest exploration shares .

READ MORE...
To read part two, you can either buy today's issue of the Investors Chronicle magazine (cover date: 11-17 Mar) and read the feature in full, or you can read it online now if you are an

Each one has the credentials ? large prospects, funding and imminent drilling ? that could transform it into the next Rockhopper, Bowleven or Xcite Energy.

What's more, one of the strongest share price triggers is expected to fire on two of these companies over the coming few weeks.

http://www.investorschronicle.co.uk/InvestmentGuides/Shares/article/20110310/2e1e9536-4b01-11e0-ba3a-00144f2af8e8/Driller-thriller.jsp

Seven oil shares that could rocket

Created: 11 March 2011 Written by: Martin Li

Range Resources (RRL)

Range Resources has generated huge investor interest and its shares are some of the most actively traded on the Alternative Investment Market.

Yet, despite rising over 260 per cent in the last six months and nearly 500 per cent in the last year, there could be much more still to come.

Range combines massive hydrocarbon potential underpinned by existing production, with normal exploration risks spiced up further by pirates and hostage ships.

The company's greatest potential lies in the Puntland state of northern Somalia, where no wells have been drilled since 1992, but which is believed to represent a geological replica of the 5bn-10bn barrel hydrocarbon basins in nearby Yemen.

The licence operator, Africa Oil, plans to drill two wells in Puntland, starting in July, with each targeting over 1bn barrels net to Range.

Range will fund its 20 per cent share of gross $20m-$25m (?12m-?15m) drilling costs for the Dharoor prospect, which is targeting 1.2bn barrels net to Range.

Partners will fund Range's drilling costs for Nugaal, which is targeting 2.5bn barrels net to Range. And while security risks are considerable ? for example, the rig will be brought in under frigate escort ? the upside on success is correspondingly higher.

Before drilling starts in Puntland, Range will start drilling another major project in Georgia, where its two blocks cover some 10 per cent of the former Soviet republic's area.

Seismic surveys to determine drill locations were assisted by a helium survey (this is only the second project outside of Russia to use this technology), which director Peter Landau estimates can improve the chances of success from one-in-eight to around one-in-two.

The top six prospects on these blocks are estimated to hold 728m barrels of oil (Range's interest 40 per cent) and are ready to drill.

First to be drilled will be Vani 3, which is targeting 145m barrels and should start drilling in April. This will be followed by Kursebi 2, targeting 160m barrels of oil.

Cheers
jamit01