real value in rrs

This was posted on the UK ADVFN BB today in reply to a well known shorter trying to get people to sell RRS and buy some other stock. This Guy Captain Nelson Forties is an Oil Man he knows his subject see him on other Oilies in the UK he is well respected.

.............................
CaptainNelsonForties - 6 Apr'10 - 16:33 - 8767 of 8784


Victor,

No thanks. While you're here why not take a look at RRL's assets. They've 25% of a deep over pressured oil and gas find that's due a reserve report and spudding of an appraisal well any day now. The nearby Mobil David field has produced in excess of 300Bcf and 10mmbbls to date, its shallower than our Smith discovery though and I'm sure you are aware of the effect of gas and oil shrinkage under pressure (important factor for volumetrics). The reserve report on Smith is going to make interesting reading for you when it comes out. The market cap here when you strip off cash is a mere 25m, $23m free carried for Puntland, A$80m NAV already, A large discovery in Texas not yet priced in. Billions of barrels of potential in Puntland (all of PPC's prospective resource estimates would fit into the corner of one of AOI/RRL's targets. One is around 4Bbbls STOOIP! That doesn't account for offshore Puntland or Georgia or the mineral rights. And you think this one is over-valued in comparison to PPC. Here's a hint for you I won't be selling one single share of RRL to buy any PPC.

Captain Nelson Forties