texas a slow death

Reading the Independant reserves report and knowing the background of the US onshore region, through watching all the ASX oilers in this region it is clear to me that Range are at the beginning phase of blowing shareholder wealth...

When I first got into the US onshore region through various stocks such as TEX, I was excited about the successes, discoveries. But years later after I got out, I realised that many factors involved made the package of Onshore US investment poor...
for example, tax, rolalties, land owner back in rights are the key ones...
I luckily got out and never looked back... Watching the 30 something oilers on the ASX in the region faulter, and raise capital (even in good markets) has really proven to be a testiment of what I have continually said over and over for years....

Ive seem it all before,
The reserves and flow rates per well are TOO small for it to materially impact the underlying value of the company...
there is no real value in these projects, the only value is of hype value...


as a region, Texas has been explored to bits for hundreds of years... Do you think quality fields have not already been scooped up, or produced?
well, they have...
no doubt theres a few good discoveries to come, but its all stacked against new entrants...

The only way this US venture can work is if Range has hundreds of producers...

looking at the history of ASX oilers in this region, and the capital commitments of such a mean feat, it is highly unlikely that this target could ever be achieved...
RFE might be one of the few that could do it, but I've done the numbers myself and NPV per well was not standout...


This is about Puntland, forget about Texas...
If your reason for investing was for Puntland, then any new projects, such as Texas are contrary to why you are holding...

I didnt come back after all these years to slug it out with the Range folks again... I came to give my honest opinion again...
There could be something in Puntland... There are enough shareholders sticking around to find out... If Puntland eventuates, there will be rip snorting fireworks...
wow......

In this situation,
The intricate details of the processes in Puntland are far above my head...
too much risk....

Theres a couple of junior asx oilers drilling offshore AUS this year... one in the Sydney Basin... wow...and WA...

No need to take these extreme risks...
but then again, the payoffs could be just as large...

good luck all... wishing drarthur and the team all best...
and remember, make sure you get some CSG...
millionaires to billionaires...

me in time to a milly... got to get to a milly b4 a billy..... lol....
take care...


.^sc