Africa Oil should soon announce their Puntland drilling schedule and they have experience in the region (Kenya and Ethiopia). IMO this takes some some risk out of the Puntland mobilisation and drilling. As hard as it may be for long term Range holders to beleive, the odds of action on the ground in Puntland in the next couple of quaters are shortening.
Positive Smith#1 initial flow rates and well pressure, oil and gas shows with no water, 2 additional payload zones to perforate and further acerage to exploit. Reserve report, drilling program for additional acerage and 'sale of oil and gas' annoucements all likely in weeks to months. You never know, a decent reserve report could underwrite the current SP.
Georgia seismic is mobile and funding to confirm the 14 potential/suspected targets then commence drilling should be secure once the entitlements are placed. Georgia could be a real dark horse if some of the murmurings from www.iii.co.uk old hands are worth a grain.
Puntland offshore agreement and potential farm out on the horizon. Where Range will find a farm out partner to perform seismic off the gulf of Aden is anyones guess!! I'll go out on a limb and assume that the Puntland government can't deploy a flotella of batteships to provide overwatch. After Somalia was voted the worst country in the world in 2009 by the Economists one view would be that the only way is up. Then again a massive find could trigger a whole new level of pain.
There's a Range roadshow rolling into London in the next few weeks and plently of UK PI's are showing enthusiasm for the prospects on offer. Range have a licensed portfolio and it's being displayed to generate more interest in the stock. Rightly so, they have a good set of prospects.
There's a high level of cycnicism on this board. If you're a long term holder I've seen the 5 year SP chart so can see where that comes from! Yes there are still significant risks in Puntland and in Georgia, I'm under no illusions there. BUT, if you take a forward view, the upside reserve potential is IMMENSE and Range looks well placed to start delivering in 2010. There's much to look forward to. Thought I'd drop by and try and spread a little cheer. GL all, particularly to the long suffering!
RRS Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
