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Range Resources

Share price enhancing activities?

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

Share price enhancing activities?

Post Fri May 04, 2018 8:49 am

In the latest presentation Range promised a ramp up in activities to provide share price enhancing news.

But what can they possibly announce?

We are almost half way through the year... We brought a rig company and are neither drilling for ourselves or doing contract work (apart from a 10 day gig). We are paying wages to have the rigs just sitting there. Range seem happy to let almost 2 months at a time go by without a TT update replying on tucking away any news good or bad in quarterlies.

Eva had the nerve to tell me the presentation represented a comprehensive update..

But what do they have in store this year that could tick us up? 800 bopd this quarter.... That's 30 bopd more than we were in Jan! 1000 bopd by year end? Seriously... We brought a rig company for that? 40 bopd net from Indo? Amazing. Waterflood has stalled.... They fked up the pump and it's been pumping the same in both fields for over half a year now... Production growth is coming from frantic workovers.

All I can see to tick us up is a big contract or another left field acquisition.

Other than that what? And why are we here if not to see the value of our investment increase through a rise in shareprice??
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Razzledazzle
 
Posts: 2158
Joined: May 2012

Re: Share price enhancing activities?

Post Fri May 04, 2018 10:14 am

Oh dear, its been a few days & up pops Razz lol

Range are clearly trying to gain sub contract work out there. At what point do you say, we have to draw a line & publish fixed targets to keep that Razz chappie happy ? And what targets do you publish ?
We could say, no more sub contract work this year & we are going to drill xyz & bopd will be xx.
Or we could learn from past mistakes of over promise & under deliver & issue lowball bopd targets because we just dont know what we will be doing but by under promising & over delivering it gives off a much better vibe

And we must go back to what work gives Range most profit - is it workovers/depletions ? or shallow drilling ? or deep drilling with uncertainty ? or sub contract work ? I suspect sub contract work gives us most profit 7 its why they dont want to commit to detailed drilling plans & proper bopd targets.

As for the SP, Ive said for months now that Abrahams voted the bonus remunerations down late last year & suspect its the kick up the *** Range need to get moving. They invested in Range at 0.8p not 0.2p & will demand actions that move that SP back up much closer to their buy in price - IMO. Saying that, we have had 3x quarterly updates now where the operational peformance in bopd & finance has significantly improved & Im expecting full year to show bopd up 30% on last years accounts & revenue up 45+% so not all bad - the SP has to catch up sooner or later. And over past couple of years Range wrote off over $40m goodwill/imparement charges & not expecting to do so this year


Ok, Razz, your in charge of Range for a day (let me get out 1st please !) & not a shareholder....what would you do ?

All the best - just let me know which day you are taking over - i need 24hrs notice !

Loadsa
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Loadsamoney
 
Posts: 3433
Joined: Mar 2012

Re: Share price enhancing activities?

Post Fri May 04, 2018 11:20 am

Razz

Your question seems to be:

"Are we there yet"?

Answer - no, and we have quite a way to go yet.

This is a long journey, but we are now moving in the right direction. The drivers are quite busy and are not obliged to meet your personal demands for a minute by minute running commentary.

If you don't have the patience for this, particularly now after many years of wasteful insanity, you have other options.
tennents
 
Posts: 71
Joined: Jul 2012

Re: Share price enhancing activities?

Post Fri May 04, 2018 1:35 pm

Razz
I used to think as you do that we have these rigs and crews sitting on their jacksies playing cards and wandering around looking for something to spend their easily earned wages on.
That view has changed. Every workover of a well and we have done quite a few requires one of the smaller rigs and a crew.
The one 10 day drill is misleading. Go onto the RRDSL web site and have a look at the drill set up - you obviously don't bring a drill in on a low loader Monday and start drilling on the Tuesday. A single drill probably takes 3-4 weeks which is why a drill is so expensive.
There is also this little nugget in their client list
February 2017 – Range awarded a call out contract by Petrotrin to provide heavy workover services. How often and how many men being drawn off for this contract?
I said to Loadsa earlier that perhaps we now need a separate section in the quarterlies to cover RRDSL activities - they might just be a nice little earner!
Nedkellylandau
 
Posts: 1917
Joined: Mar 2013
Location: Lost on the Range

Re: Share price enhancing activities?

Post Sat May 05, 2018 10:28 am

If I helps I share your frustrations as the bottom line for investors is sp and its not going anywhere. Despite he price if oil rising and positive comments from Malcy. Volume has been an issue for a long time here, holders aren't selling but new buyers aren't buying either. Either they don't buy the recovery story or prefer to put their money elsewhere.
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Momo
 
Posts: 4451
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Location: Relax nothing yet...

Re: Share price enhancing activities?

Post Sat May 05, 2018 3:34 pm

Momo wrote:
> If I helps I share your frustrations as the bottom line for investors is sp
> and its not going anywhere. Despite he price if oil rising and positive
> comments from Malcy. Volume has been an issue for a long time here, holders
> aren't selling but new buyers aren't buying either. Either they don't buy
> the recovery story or prefer to put their money elsewhere.

The question is how long will it take for Range Resources to actually become viable as an investment.

It doesn't matter how well the company does if nobody wants to invest in it.

Which is why I said 6 months ago that the company needs to have a strategy of paying dividends within a reasonable timeframe so that the shareholders will get value in their shares one way or another.
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Rexco
 
Posts: 2768
Joined: Mar 2013
Location: In AIM trying to get out

Re: Share price enhancing activities?

Post Sun May 06, 2018 6:01 pm

The company needs to make a pre depreciation profit on EBITDA level. High oil will help but that will be key to restoring confidence. Not bopd but money, money, money.

Show me the money!
rob295
 
Posts: 125
Joined: Dec 2015

Re: Share price enhancing activities?

Post Sun May 06, 2018 6:01 pm

The company needs to make a pre depreciation profit on EBITDA level. High oil will help but that will be key to restoring confidence. Not bopd but money, money, money.

Show me the money!
rob295
 
Posts: 125
Joined: Dec 2015

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