Its one step at a time, the rate of progress on Texas RB has...

Its one step at a time, the rate of progress on Texas RB has been impressive here and PL hinted at a very aggressive development time. They seem to be achieving this at the moment. The post-frac numbers will be interesting here as it can open up a lot more of the P3. P3 on smith was some x2 the P2 numbers these would be reviewed depending on test flow rates. RRL has bags of potential from Texas full development and the higher longer term upside that Puntland and Georgia will bring. Certainly the frac of Smith and the results from RB have a fairly clear 50% upside on the current share price at this point. Mobilization of the rig to Puntland and its an entirely different ball game entirely, PL did mention that he hoped it could be just a few weeks away from that last radio interview.

posted by CaptainNelsonForties

Re Georgia

When you consider the seismics are now completed in Georgia and the data currently being assesed. Drilling there is scheduled for Q4 2010. In Geogia an initial analysis of 24 areas identified 11 structures suitable for oil in place estimates and key targets for future drilling. Of these structures two are deeper than 2,500 meters and the rest are shallow features between 600 and 2,500 meters. No massive drill costs IMHO due to the depths..

poster GreatfulDead

Its a comprehensive report and I agree whole heartedly that the Smith1 and North Chapman plays more than under pin the price of RRL and that RB if successful adds additional value. As will the possible successful frac of Smith-1 and opening up more reserves as a result (fingers crossed). Its always production and reserves that I'm interested in as they add real value to oil companies. While Georgi and Puntland are in for free they're hard to put a value on. Speculative value is high since they're not priced in, but real value will require a find. Certainly I see 6-7p on further development of N Chapman Ranch over the next few months and 10p on rig mobilisation and/spudding of Puntland (any puntland release could have a dramatic speculative effect as its billion of bbls). Georgia will depend on which prospect they choose first. Certianly Smith/NCR alone can build a significant value into RRL as its developed, the others are pure blue sky and in for FREE at present.

poster Captain Nelson Forties