post from uk bb

This is an outstanding result for Range. They've invested $1.8 US to farm in, get Smith#1 into production with a 25% stake have a 20% stake in further wells.

The ASX is cautious because they've been through the ringer with Range. They will judge the report largely by the P1 (proved) resources and treat P2 (probable) and P3 (possible) figures with a grain of salt at this time.

Another note of caution from ASX is the projected pay out timescales. The field needs a couple of more wells before it truly start coining out.

RB#1 to spud within days which will help delineate the overall size and characteristics of the reserve. The P1/P2/P3 figures will adjust accordingly. If they intersect all three pay zones drilled through Smith#1 the P1 will increase significantly.

Smith#1 completion on the horizon as well which will significantly increase the pay out in a small space of time.

Great result for oil, particularly in the short term as the spot prices will be proportionately higher than gas through the summer.

My calculations were just calculation only not SP predictions. I always suspected that this initial report would give a floor around 5p but given the amount of oil that could be slightly higher.

P3 (possible)
- 215Bcf of natural gas
- 15.9mmbbl of oil
- 15.9mmbbl of natural gas liquids (not sure how to value this, will look at the report more closely later today.)

http://www.asx.com.au/asxpdf/20100511/pdf/31q8l5953kxfzm.pdf