It is currently Sun Dec 16, 2018 9:19 pm

World Stocks

Range Resources

Malcy Podcast on Range

(ASX:RRS / AIM:RRL / PINK:RGRLF & RGRYY)
Informed Discussion. No ramping. No deramping.

Malcy Podcast on Range

Post Mon Mar 12, 2018 11:40 pm

https://audioboom.com/posts/6718568-con ... nr?t=36m30

Starts at 27.30

Key takeaway - it's going to take time.

ffs for how many years have we heard that.
User avatar
Razzledazzle
 
Posts: 2251
Joined: May 2012

Re: Malcy Podcast on Range

Post Mon Mar 12, 2018 11:58 pm

So unlike you to miss the positive & go after a negative tone Razz LOL

29m 20secs talks of new Rigs

theyve got some very smart brand new rigs, one of which we saw almost ready to go onsite where they have a contract for a SUPER MAJOR, you and I and everyone would know the name. Cant say at the moment because they are waiting for final confirmation............i expect them to do well.
30.15 - they have a much bigger rig, which they brought over from China which could do 4000 metres, which is more than you ever need for Trinidad, so I would expect to see that going into South America
Also, everything is beginning to look up nicely for Range
30.50 all time low and the potential is not priced in
31.30 what we say was a pretty solid pickup, as I say, it will not run away STRAIGHTAWAY but IT AINT GOING DOWN ANYWHERE.....
He then talks about Indonesia & further acquisitions in that next of the woods - not sure if he meant us or generally

So, basically, your listening to what you want to hear razz

Quite promising id say
User avatar
Loadsamoney
 
Posts: 3474
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 12:04 am

Thanks for posting Raz and yes we have but I liked the comments from Malcy, heads down get on with it no pish management looking to make a success of business with no intention to take it private.

However surprised you made no mention of his comment about the drilling company side when he said he saw one of the new larger rigs pretty much ready to go onsite onto a pad for a contract job for a ‘supermajor’ company, couldn’t say anymore than that but take what you can from it but that they were just waiting for signing of the final paperwork.

Sounds pretty positive to me. We shall see
FUBAR@Birth
 
Posts: 933
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 12:21 am

Sorry Fubs but your message is such old news - I announced all that 6 mins before you

Try & keep up :-)
User avatar
Loadsamoney
 
Posts: 3474
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 12:48 am

Lol must be delay then Loadsa as when I posted it never came up that someone had already made another post which it normally does!

So stick that in yer pipe and smoke it ;D

Anyway worth repeating
FUBAR@Birth
 
Posts: 933
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 1:17 am

just try and keep up, that's all i'm saying pipe smoker !

worth saying
"brand new rigs, one of which we saw almost ready to go onsite where they have a contract for a SUPER MAJOR, you and I and everyone would know the name. Cant say at the moment because they are waiting for final confirmation"
again
User avatar
Loadsamoney
 
Posts: 3474
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 9:59 am

he also mentioned about the drilling company, when he said he saw 1 of the new rigs ready to go onsite onto a pad for a contract job for a ‘supermajor’ company. worth mentioning
kemp91
 
Posts: 1581
Joined: Apr 2013

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 11:06 am

Kemp
Ill have another listen
Did he really say one of OUR rigs is ready to be used by a supermajor ?
I missed that, i must have ears and eyes like Razz :-)
User avatar
Loadsamoney
 
Posts: 3474
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 12:22 pm

Quite interesting I thought that Malcy mentioned a super major may engage our services for drilling.....

Did you all miss that in his blog?

W
Wiggy
 
Posts: 2894
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 12:22 pm

Any news on what Range are doing with their rigs ?
FUBAR@Birth
 
Posts: 933
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 12:38 pm

FUBAR@Birth wrote:
> Any news on what Range are doing with their rigs ?
Yes
Hiring them out to other companies!
Nedkellylandau
 
Posts: 1983
Joined: Mar 2013
Location: Lost on the Range

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 12:43 pm

I think the only major onshore is Shell T&T. If that is the case it could go a long way to influence Petrotrin. Perhaps Malcy considers Petrotrin a major.
It is disappointing to hear from Malcy that our largest drill, capable of drilling the Herreras might be bound for mainland South America, unless of course it is going to a new Range licence, Columbia perhaps :-)

PS
Tried emailing Petrotrin for any info on the EOI but got no reply.
Still no reply to the letters to Australia and T&T
Nedkellylandau
 
Posts: 1983
Joined: Mar 2013
Location: Lost on the Range

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 1:19 pm

At work so can't listen to it....but hiring out a rig to another company is big news because?
Its just hiring it right, for them to drill actual oil?
Unless the rental fee is astronomical?
User avatar
Momo
 
Posts: 4487
Joined: Mar 2012
Location: Relax nothing yet...

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 2:02 pm

stead on guys,


Razz didn't mention in his opening summary that Malcy said "theyve got some very smart brand new rigs, one of which we saw almost ready to go onsite where they have a contract for a SUPER MAJOR, you and I and everyone would know the name. Cant say at the moment because they are waiting for final confirmation............i expect them to do well."

So until Razz says Malcy said it, I'm not sure I can believe all these; he said, she said chinese whispers

Razz....please confirm if this was said or not please for the sanity of this board....we have a few long term oddballs on here & I need a proper balanced opinion from you Razzer
Thanks old pal
Loadsa
User avatar
Loadsamoney
 
Posts: 3474
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Tue Mar 13, 2018 7:19 pm

Momo I agree that in terms of us finding oil, then yes hiring out a rig maybe not ideal, but at same time we can’t complain that rigs are sitting idle then complain when the company having bought the rig company back then actually starts getting them used by winning contracts for them to drill.

I get impression the board are hinging their increase in revenue on mostly water flood in near term with just a few exploratory drills here and there and the rest workovers. Based on limited financial reserves rather than risk exploratory drills with poor returns and place us in even more debt or struggling to finance ongoing ops.

So hiring out those rigs they won’t need just now to get some kind of regular income stream coming in and if water flood etc does what it’s mean too, then when the company feels it’s in a stronger position maybe then will increase the exploratory side in TT. They have of course got Indonesia as well as a shot to nothing or money back and maybe who knows we might get another acquisition.

If the big drill is going elsewhere then maybe any deal could involve a farm in share of that drill with the company concerned ? Does t maybe have to just be a cash rental does it ?
Plenty other companies have done that.

Fubs
FUBAR@Birth
 
Posts: 933
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 12:05 pm

Simple things are either not being done or communicated

The strategic objective is not clear
Are we looking to drill our own areas and get to 1k BOPD average for the year?
Or we just doing work overs/swabs and the odd drill and we won't get near 1k BOPD?
A mix of both?

To me this looks like the core business is changing and we're looking to become more of a leasing drilling servicing company, if that's the case I'd be more interested in the type of monies we make from this?

Its all good leasing out equipment and staff but if we're not making a high % of profit on that lease I'd rather we work on our own acreage.

I agree about the deep drill, we're not going to risk any deep-drills as we don't have the monies so lease that bad boy out.

I'd be nice to know
Confirm the rigs/drilling depths
Confirm what we plan for the rigs
Rig1 - Workovers
Rig2 - Swabbing
Rig3 - Leasing out to ***** for whatever time-frame
Rig4 - developing wells xxx and xxx
So on...!

We just don't have any idea at the moment.

I have contacted the company about the way in which they communicate to their shareholders and asked that they treat it less like a choir and more like a marketing tool.

I've also asked where the increase of BOPD has come from and had it confirmed it's a mix of workovers/swabs and waterflooding.
Jimmyrobby85
 
Posts: 1458
Joined: May 2013

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 12:30 pm

Good points JR
Comms and PR dont go together for Range

However, the numbers suggest we are finally pulling our finger out - I suspect as they will be concerned about that remuneration vote down last Nov & the next vote this Nov.
Qtr end ave bopd
June 17 531
Sept 17 579
Dec 17 629
31/12/17 703
Jan 18 Ave 777
Id call that progress

Waterflood - Marcelle
Sept 17 90 bopd using 885 water
Dec 17 190 bopd using 800 water (Eva said to me yesterday as data missing off report)
Now were told we can crank up to 1500 water per day - almost double previously used - maybe an extra 100-150 bopd ?????

Receipts
Sept 17 $2.3m
Dec 17 $2.7m
and if oil price stays same and we do 800 bopd average in Qtr to March 18, receipts will be circa $3.3m

Makes sence not to go deep expensive exploration drilling currently, aim is clearly to get bopd up to and beyond 1000 (to support their 1000 bopd target average for whole year). Clearly Range are chasing contracts for outsourcing this year & as Malcy said, big drill could go to South America and were about to announce work with a "super major"
That leaves us doing workovers & progress on Marcelle waterflood and starting new waterfloods

Qtr 1 report could (if we maintain 800bopd) show 25%+ improvement in bopd and receipts. A not too shabby improvement id say
User avatar
Loadsamoney
 
Posts: 3474
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 12:49 pm

Loadsa,

I agree, it is a positive improvement. They just need to market the company and update shareholders in a much more efficient way.

We have a decent workforce over at RRDSL and a few rigs. I have no idea what they're doing or when or even what the future holds?
I have massive concerns that RRDSL was a drain on resources prior and while under LO that didn't improve. I really want to know more about what they're doing.
A comprehensive report would be nice and refreshing to see.

I'd like to see some development wells as the recent well showed good results, the risk does need weighing up though to see if its viable?

Are we changing the business plan?
Is 1k bopd average for the year still a plausible target?
What works are the rigs doing at the moment and whats planned for each?
What we leasing out to who and how long for (obviously only available once confirmed)

Most importantly

What are you doing to increase shareholder value as the current price is a SERIOUS concern?

At least its not all doom and gloom
Jimmyrobby85
 
Posts: 1458
Joined: May 2013

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 1:09 pm

JR
I cant disagree with anything you have said

The problem is around letting us in on the detailed plans for the year.
The problem with that is they are still chasing contracts for outsourcing rigs/crews so dont know when & what they can do for us until contracts signed & agreed - else they would have to keep coming back to market with revised plans again and again

I genuinely believe the Range |Directors got a bloody nose last November when Abrahams voted down remuneration. Its bound to do with buying in at 0.8p and seeing 75% of that price lost for some time now. Imaging if bopd and SP isnt significantly higher come this November when votes start again for remuneration & what would happen if voted down again. Resignations ?

The numbers show we are showing much progress recently & in a miles better place than March 2017 when we suspended at 0.35p. IMO the SP should be at least that if not more given the progress.
Im hoping q1 shows average bopd at/above 800 which would show a 25% improvement on qtr to Dec in both bopd and almost certainly receipts too

The numbers speak for themselves & the SP cant stay held down forever, sooner or later the SP will catch up with significant progress being made

And with the extra receipts, Id suggest a chunk go on a decent PR company to take over comms !
User avatar
Loadsamoney
 
Posts: 3474
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 2:19 pm

I asked Malcy if the podcast was it or was there going to be a bigger piece on range done by himself regarding his visit to TT recently.

He replied yes

So hopefully we will get more soon from him.
FUBAR@Birth
 
Posts: 933
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 2:30 pm

I agree. Ultimately shareholder value comes from an increase in shareprice based on the market recognising progress. It's up to range to communicate progress effectively. The buzz just isn't happening... The news that is released is always oddly vague and broad strokes. We don't need an rns every day but we do need them to deliver on the promise in the presentation on listing of regular newsflow, shareholder webcasts etc etc. Personally I think the market read between the lines on MD being put on hold. Read between the lines... Millions spent, it's a dud.
User avatar
Razzledazzle
 
Posts: 2251
Joined: May 2012

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 3:05 pm

I wonder if we are failing to see a larger picture re waterflood. Production from new wells depletes fairly quickly, the nature of T&T fields. On the other hand production from waterflood in the early years increases. There are many hundreds of unproductive wells in depleted fields and even Petrotrin looking at secondary recovery. Is the business plan to concentrate on a two case scenario - RDSL leasing out the drills and RRL producing from waterflood projects which would give us a greater cash return for our dollar?
You seem to get more oil for your money from waterflood and I don't doubt that equipment bought for MD can be used elsewhere
Nedkellylandau
 
Posts: 1983
Joined: Mar 2013
Location: Lost on the Range

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 4:03 pm

Yep waterflood and outsource is way to go.

Marcelle is looking really good and like you say, doesnt cost much to maintain bopd. But Diablo hasnt done well and doesnt look like they will be throwing more money and water at it any time soon.
Would love to see a few more waterfloods started this year and reap rewards next year..and beyond. And as youbsay, there could be literally hundreds of old depleated wells crying out for secondary recovery
User avatar
Loadsamoney
 
Posts: 3474
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 4:40 pm

What I heard was that the main thrust is still the water flood. Since this is in Beach Marcelle where the vast majority of RRL's known oil reserves are this makes perfect sense.

He also said it was going to take some time and that the management are very diligent. So once again we are left with a slow burner and the need for a lot of patience.

If SDX cannot get their share price up how can Range.

It all points to a malaise in the industry.
User avatar
Rexco
 
Posts: 2789
Joined: Mar 2013
Location: In AIM trying to get out

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 5:24 pm

Some good thoughts.....so here are mine - in no particular priority order.

We are now a Chinese owned and operated company - that means we need to look at what is happening though a Chinese cultural lens. Now that is about as far as you can get from:
a) many UK AIM 'I want a 10 bagger' investors
b) our previous Australian cowboy managers

I think this Chinese business culture impacts us, what is being done and the order in which it is being done, in a number of ways:

a) these guys are taking a long term view - i.e. way beyond the next quarterlies - though what happens in the next quarter will be precisely aligned to what is needed to achieve the long term objective. That may, from a 'we want a quick fix' perspective, seem either insufficient or in the 'wrong' sequence - but that is from a quick fix perspective.

For example - we own a great new drill - lets get straight down to the Herreras - loads of oil down there - job done, problem solved !! I recall our previous management in that vein of thinking and they were going to do that with the now very much missed Rig 8 !

b) these guys want and need to establish a trusted reputation for doing what they say they will do - contrast that with the previous administration (enough said).

The last quarterly shows some progress on both the wells and the water flood. Very early baby steps on a much longer journey, but they are steps and they are consistent increments. Another couple of quarterly improvements in the same vein will show much more significant increments, but more importantly a pattern of evidence - and that is the basis form which trust can be built.

They are also telling the truth - Diablo water flood is (dying?) without making a big song and dance about it - or worse trying to hide or just plain lie about it. How much trust did the previous regime have - and why and how did that play out?

Some comments earlier in this thread about why are we not marketing our selves and 'telling the story' more aggressively. Their current perception would be that they have not YET done enough to merit the effort - there is no story yet. What we have is small (even pitiful after the money spent) so they don't want people looking closely YET because it would look like spin and bullshit. 6-9 months from now there will be a track record that will evidence the pattern, stand real scrutiny and attract the right kind of attention.

Bear in mind these guys have also made some serious commitments to other Chinese investors - they will not want to lose reputation.

c) understand, balance and manage risk.

Water flood has been a long slow burn but....it is relatively low risk, it is relatively low cost and it will ramp up to material daily production. (it is also a recovery technology that will be in demand across Trinidad for some time to come and we will be a proven and successful local operator).

Swabbing and re-working wells is not very exciting but it does work and is again very low risk with known probabilties of production

'But we have our own (very good) drills' - may reduce one element of the cost, but it does not reduce the risk. Also factor in that while the kit is good we cannot (yet) be as confident about the drillers. One swallow does not a summer make - they need some more practice and experience before risking going deep.

Drilling deep wells - high(er) risk and very expensive for a company that does not have that much cash relative to the debt we have. This is no time to go to the casino as was so often the practice of the previous regime.

So two low risk (but not zero cost) strategies to get us some decent bbd figures. Seems not a bad approach to building bbd figures and trust from us, other investors and Petrotrin (who will have future licenses to commission).

A couple more medium depth wells (as announced so far) will also add to output, extend our knowledge of some of the ground and demonstrate that we can still do it. A medium (but probably low-medium) risk.

And finally our nice new drills and renting them out. While we have neither (enough 'risk') cash nor the appetite for high risk drilling on our own ground, getting some serious money for rental is plainly sensible - and of limited risk (assuming we can now actually do it and there is some limited evidence for that).

We bought the new drills because there was no (quality) capacity available in Trinidad. The USA fracking re-bound means there wont be much to spare now, so that puts us in the pound seats for work locally. So risk down, cash up and lets not forget continuous up-skilling of our drill crews - which we will need when they do get return to do our own higher risk wells i.e. de-risking elements of our future drill programmes.

So it seems to me that, when you take a longer term perspective, the current management are doing the right things in the right order. As importantly they are not doing:
a) the wrongs things in the wrong order
b) random things in a random order
..........both of which we have seen previously

Anyway.......some thoughts.

I am (very) quietly optimistic that we have made a few baby steps and that we are configuring ourselves to make a few slightly larger ones
tennents
 
Posts: 71
Joined: Jul 2012

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 6:37 pm

Tennents,

An excellent post - and I agree with you- various posters on here that have met with the BOD seem to be clear that there is a real wariness about being associated with the spin and bullshit of the past.

If we can show quarter on quarter improvements as we have done the board will start to gain credibility. Still early days, but I’m extremely keen to see whether the next 6 months see us continue on the upward trajectory that we hope for.

All the best.
rasclaat bambaclaat
 
Posts: 650
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Thu Mar 15, 2018 11:13 pm

Also if we rent out our rigs, unless we are trading a share in the spoils, then as long as we drill properly, whether we actually hit or don’t is immaterial and not our risk, we should still get paid and it’s move on who’s next .....?
FUBAR@Birth
 
Posts: 933
Joined: Mar 2012

Re: Malcy Podcast on Range

Post Fri Mar 16, 2018 9:40 am

Tennants, great post but I hardly think they've been honest about MD. Saying its on hold after going into so much with debt with LO for the project and not publishing the results of the additional testing and analysis is a get out of jail free card. Much like we may return to redrill 248
User avatar
Razzledazzle
 
Posts: 2251
Joined: May 2012

Who is online

Users browsing this forum: No registered users and 3 guests

cron

Search

User Control Panel