value of trinidad, page-4

$25 a barrel for proven reserves is a VERY optimistic estimate. You've got to factor in the time value of getting those resources out- which in most cases is many, many years, if not decades. $5 for undeveloped resources (prospective) is ludicrous. In reality 'prospective' (undiscovered!) resources are worth $0 in this market, and even if they weren't, assigning any value is impossible without knowing the Chance of Success figures.

Also, something is only worth what someone else is willing to pay for it. If it would be easy to get $190m for Trinidad, the original owners would have sold it for that, rather than for $60m. Even if they wanted a quick sale one would have thought such a low ball offer would have quickly been 'bidded up' by other companies.

What shareholders should be focusing on now is Texas. It's of importance this well proves up the P3 reserves which will allow for a sale, and thus a replenishment of Range's financial resources. Without that, it is my opinion that progress in Trinidad will be very slow.