smith

Just looking at the figures for Smith again and cant help but smile. The average for the area seems to be around 9mcf and 800bopd. However, Im not sure if any of our neighbours have actually fracced their wells and seem to have got these figures from natural flows. Fraccing can increase production by up to 500% but thats not even worth dreaming about until the figures come in. One thing worth taking into account though is the down-hole pressure of the well was around 10,000psi which shows the producing rock has good permeability and fraccing will only increase that (BPs well was around 11,000psi). It has taken them a lot longer to open the choke on this well because of high pressures. It has now taken more than 4 weeks to open the choke which the originally thought it would be completed within 2 weeks. There is a chance of cracking the well casing if the choke is opened too quickly. So if we use the basic figures from the local wells it equates to :-

9mcf / 6000 = 1500 boepd + 800 bopd = 2300 boepd * $75 * 365 / 4 =
$ 15.7m accountable turnover for Range per year just from Smith. These are the figures unfracced.

So Range is going to have a very nice income just from the chapman ranch, Texas. The other interesting point is the huge volumes of shares that have been traded on the AIM without any significant increase in SP. Share prices rise on demand and the buys have been outstripping sells for weeks now. This tells us that there has been a supply of shares from elsewhere. This would be the 460m 5c options which have been available. People will of been exercising these options and for each exercised option Range would of received 5c. We don't know how many have been taken yet but it could give Range an extra 13m for the bank. There are also the 60m 10cent oppies which could raise 3.5m. That's a possible 16.5 for Ranges coffers which should more than allow the management to keep our 50% stake in Georgia and go it alone with Strait oil. Once supply of the oppies dries up then we will see the SP rise and human nature is that if something is more difficult to attain we want it more so alas we finally get our Range Rocket. The upcoming RNS could be one of the most important for Range as so much is hanging in the air. Peter is really trying to improve the visible value of Range to offset the risk of Georgia and Puntland so you can guarantee we will see some new figures for the Chapman Ranch. This will move probable(p2) and possible(p3) reserves into the most important category of proved(p1), which will attract IIs.

I have checked all my figures but apologise if there are any gaffs and also if I'm telling granny how to suck eggs!

Eyes on the ASX tonight and we could open with a suspension.ATB Ts