two posts -iiii of interst...?

You may like to read these from Great_Room & oilygan ?

courtesy...Great_Room
Just to reiterate to some newbies the potential value in Range, I thought I'd revisit some pointers.

Every 1000bopd we produce in Trinidad is worth circa $12m per annum. End of year estimated production rate is 4000bopd at the top end. So there's $48m annual profit, not bad. Once the Herreras are drilled, the aim is to be producing 10,000bopd, circa $120m profit per annum.

We are awaiting the CPR which is expected to increase known Herrera reserves from not being figured at all, to 100mmb. That's a good $3.5bn of oil added to the value of Trinidad, all bought for a messily $60m or so.

Puntland potential for around 800mmb recoverable for Range. At $5 profit per barrel that's a $4bn reserve right there.

Then there's Texas that will most likely be sold off returning a good 8p per share to the investor.

Georgia, 2bn barrels of oil in place and now I'm tired.

Do the sums, look at the current sp, and you will see the monster potential in this share, and this is all happening NOW!!!
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courtesy...oilygan
D Oil, this depends on which crude source you are talking about. If you imagine the happy scenario where RRL is producing crude from TT, Puntland, Texas and Georgia it would tend to look as follows:

1) Texas (sold in domestic mkt only as Jones Act prohibits crude oil exports from the US) so likely to be WTI related.

2) TT - if exported t the US (the nearest import mkt) will be competing with other imported crudes. If its quality is light and sweet it is likely to be priced off LLS which is closer to the Brent price. If it is heavy and sour it is more likely to trade as a differential to Mars or some other USGC heavy crude marker.

3) Georgia - will probably be exported thru the Black Sea into the Med. If it is light sweet it will be sold on a Brent related basis. If it is heavy and sour it is likley to be sold on a Russian Urals/Rebco related basis (ie lower than Brent by a factor that takes account of the quality - Im a bit out of touch with current levels but used to be around $5//bbl lower).

4) Puntland - based on the location it is likley to be exported to the Far East mkt where it will price of local markers (depending quality) such as Minas or Duri (whose typical differentials to Brent I have no recollection off though I think would be a few USD lower).

Hope that helps.

Oily