It's my opinion that the words 'farm in of 50% of the 2 blocks' and 'gaining 50% of the share capital of Strait' mean we did own 50% of Strait, and now have 40% having given up 10% to RMP. So 40% interest in all three blocks (VIA, VIB, and VIII). I have also had this confirmed to me by the company, so you can be pretty sure this is accurate.
Of more interest in that half yearly report is the fact we clearly have offshore Puntland now, and have started trying to attract a farm in partner. The figures been talked about are from $50-100m+- that is the value to Range of a farm in! (slide 18, look at the consultants renumeration- it talks about bands of $50m-100m, and of $100m+).
As a point of reference, the AOI deal gave us value of $25m per block, so the overall deal was worth $50m. Suggests we have at least 2 offshore blocks just going off the lower figure- and perhaps we have a lot more besides that- the upper band figure of $100m wouldn't have just been included for a laugh. Big money potential here.
Of interest is also that we have first dibs on any additional percentage stake in Trinidad (slide 22). Again, there's no reason to include that in the report unless we are actually increasing our stake.
This really is a big screaming buy. Thousands of miles of acerage, onshore billion barrel potential, offshore billion barrel potential, producing in Texas, a permenant drilling campaign in Georgia, fully funded and preparing to get a large slice on Trinidad onshore. Quite a bit different to last year!
RRS Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
