Best Estimate for Range's Net 20% interest Oil-in-Place 860 MMbbls with high estimate of 2 billion plus according to Independent petroleum engineering consultants Sproule from Canada.
This would value Range according to ASX announcement 27th October 2006:
" Based on RRS issued capital post consolidation at US$60 per barrel and a 10% nominal discount rate, each Range Resources share has an NPV of $13.22 per billion barrels of ultimate recoverable reserves *This valuation does not discount for political risk, further dilution of capital to fund ex"
4.3 billion in place best estimate just for Noogal so 4 x 13.22 = $52 per share being conservative as oil price is at $US80 currently, and only based on 4 billion barrels of oil and not including Dharoor Basin, Offshore, or any abundant minerals which contains MVT style lead Zinc deposit etc.
We need the sophisticated London Market to value this puppy as the oxygen thieving munter hill billy screwd crude mentality type investors on the Australian Market have no comprehension of Africa.
Yes I know they said “There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, that it will be economically viable or technically feasible to produce.”
Answer in one word: Lundin
RRS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
