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Range Resources

Price of West Texas Crude

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

Price of West Texas Crude

Post Mon May 07, 2018 10:43 pm

It is now at US$70 so that can only help our cash flow.

It will also mean a greater likelihood of more contract work for RRDSL.

Moving the share price is another matter and will only come with better cashflow results and profits.
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Rexco
 
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Re: Price of West Texas Crude

Post Wed May 09, 2018 2:16 pm

According to BBC reports from America the average American is afraid petrol prices will rise because of Trump's stance on Iran and that will only happen if oil prices rise. Could we see $80+ per barrel in the very near future?
Nedkellylandau
 
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Re: Price of West Texas Crude

Post Thu May 10, 2018 7:26 am

I genuinely think we will hit $90/bbl but on recent evidence that might take time to filter through to a higher SP.
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Re: Price of West Texas Crude

Post Thu May 10, 2018 7:31 am

There was a good article if you google it making the case for $300. I disagree with the figure, but I think it was more to make a point if you can find it.
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Re: Price of West Texas Crude

Post Thu May 10, 2018 12:35 pm

Interesting, it wont get that high though. Rising price would be good for oil extractors, perhaps that will cause a rethink in how we use RRDSL.
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Momo
 
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Re: Price of West Texas Crude

Post Thu May 10, 2018 4:53 pm

Momo

I don't think it will change the current plan. We do not have a lot of cash and we have some significant repayments to make in the not too far future. I think these guys are being smart in managing risk in:

1) Pursuing the water flood - lowish costs in relation to the outputs and £ income (assuming it goes as planned)

2) Getting the rigs hired out - these will be getting a good £ income rate because there are not many available and that scarcity increases as the POO has been rising (shale boys very busy again). In the interim they have been swabbing our own drills which will improve the drill crew effectiveness and efficiency - which will make them:
- more sellable to other operators
- more valuable and productive to us when we bring them back in RRL drills

3) Not being tempted to roll the dice on a $5m Hererra deep drill - way way to high risk for us just now. If it failed it could crash the whole company.

The oil is not going anywhere so we need to manage the technical and financial risks in ways that keep us out of cash and debt repayment trouble.

I think that investors, funders and bankers are going to be looking for evidence that we have 'good habits' that have replaced the previous regime's highly toxic legacy. We need to show a track record of:

- having a (credible) plan
- sticking to the plan
- delivering the plan

......over and over again...then we will be seen as competent 'grown-ups' financially, technically and operationally.

When we get there the share price will reflect that.

Happily I think we making progress - may not be as fast as we would like - but it is progress.
tennents
 
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Re: Price of West Texas Crude

Post Thu May 10, 2018 5:02 pm

tennents
"We need to show a track record of:

- having a (credible) plan
- sticking to the plan
- delivering the plan"
I think the major problem now with the SP is that no investors know the plan as we haven't been given one and on that basis we don't know if they are sticking to it or delivering anything.
Like many on the board I can think of things that are going on in the background but that won't keep the SP at its present level never mind increasing it.
The price of oil is now nearly double what it was and every indication that it will continue to climb - why are the other T&T companies not fighting each other for our drills?
We can only wait so long for these "choice" contracts that are in the wings!
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Re: Price of West Texas Crude

Post Fri May 11, 2018 9:20 am

Ned - no disagreement, we need to see further material increases in production and some good drilling contracts. We don't know what the position re contracting and will not until each deal is finally signed off. The uncertainty is not great....but that is the nature of the beast.

On 'the plan', i understand it as waterflood, keep production up on the shallow drills (swabbing), two new drills, win some drilling contracts, get Perlak going and keep costs down. Not sure what else we could expect given where we are at the moment.
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Re: Price of West Texas Crude

Post Fri May 11, 2018 9:36 am

tennents
THe big problem as has always been with this BOD is what appears to be a total lack of understanding on communication. They drop the bombshell that because of a cock up with pumps there is a drop in production but have never come back to us and said the problem has been resolved and production has again started to increase - current bopd now ………
Perlak seemed to be going quicker than first predicted but to what extent.
They could do a lot more on the communication side instead of leaving people thinking same old Range, same old Range no news is bad news!
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Re: Price of West Texas Crude

Post Fri May 11, 2018 10:32 am

EXACTLY Ned!!! The long radio silences and lack of communication follow up is killing this.

And who gives a monkey how much progress there is if the share price isn't going up.
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Razzledazzle
 
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Re: Price of West Texas Crude

Post Fri May 11, 2018 10:49 am

Ned - As we all know the 'price sensitive' factor is deployed regularly here. Perhaps unhappily, that is reasonable and appropriate as some of the things we want to know are indeed price sensitive.

I think we still suffer from the hangover of previous managements, and the impact that has had on how this company is perceived by the market. That is not going to change overnight no matter how much we would want it to.

As I see it there are some 'good' things emerging in the pattern of communications:

1) They are to a programme and they seem to be sticking to that i.e. a disciplined
approach
2) We no longer have endless 'leaks' - that were mostly bull**** i.e. straight lies
3) They are telling us that they have made some mistakes i.e. the truth
4) They RNS anything that indicates some small, but strategic, impact e.g.winning a 10
day contract with Shell i.e. key indicators of progress

Personally I prefer this approach to our previous experience, however I accept that brings some 'culture shock' for those here.

RRL has had a near death experience and we are still very much 'in recovery', but i think we are genuinely recovering slowly but surely. I think the communications processes look much more like a recovering and 'real' business. We just need them do deliver - and tell us as that goes along.

Just my views on it.
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Re: Price of West Texas Crude

Post Fri May 11, 2018 10:53 am

Razzledazzle wrote:
> EXACTLY Ned!!! The long radio silences and lack of communication follow up
> is killing this.
>
> And who gives a monkey how much progress there is if the share price isn't
> going up.



And how do you expect the share price to go up if there is not progress ?
tennents
 
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Re: Price of West Texas Crude

Post Fri May 11, 2018 11:16 am

tennents
It's the price sensitive information I want them to disclose!
There doesn't seem to be a reason why they can't disclose the info if it is price sensitive in the form of an RNA.
There are so many positives with the company but they don't seem to capitalise on them.
Add to the fact that the wet season is only a month away and most things seem to grind to a halt for a couple of months and then there is no source of positive news.
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Re: Price of West Texas Crude

Post Fri May 11, 2018 11:39 am

Ned i get the frustration - I want the share price to go up too !

They seem to have a strategy communicating to the programme with exceptions 'on merit'.

Given our production from old wells and waterflood is incremental increase (daily?) do you think a day by day report would be valuable or would that just fuel more nonsense discussion in here and convince external readers (investors) that we are a bunch of unprofessional clowns ?

Also to be fair they have done the drill announcement, spud and completion RNS as appropriate - just we are not doing much of that just now.

I think the way they are telling the story is primarily directed at external readers - the ones that, when they have confidence in it, will buy the story and the shares, and the price will go up.

For those of us here - we just have to wait, or sell - because there is nothing that we can do with additional information that will meaningfully drive the price up. We need 'new' money and that is who they are targeting the communications strategy/process towards.

A bit frustrating and painful for us perhaps in the short medium term, but until the non-holding market is convinced of the case to buy in, we have to suck it up.

Putting it in context, we probably should not still be in business - but we are.
tennents
 
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Re: Price of West Texas Crude

Post Fri May 11, 2018 12:38 pm

tennents
The last thing I want or expect is a day by day, blow by blow report. My main concern at the moment is that they left us out to dry with the last report that disclosed the reason for the fall in production but haven't followed it up by a follow on confirming the steps they took to rectify the situation have worked and bopd is once again on the way up. As it is it has left the view that no news is bad news and investors are steering clear of RRL. The last we heard on Perlak was of a local disaster on our field but honest mister it wasn't our fault.
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Re: Price of West Texas Crude

Post Fri May 11, 2018 1:11 pm

I really really hate to say this...no really I do...but I think Ned is right.

I can fully understand not being able to give full details of drill plans/workovers incase things change with contract work but basic follow ups like Perlak & recent dip in production & what being done & by when is something Range can & should provide in a timely & honest manner.


We are back to the aged old Range problem of PR & Communications...both of which seem to come from Eva...told what to say etc.....

2016 Director fees in wages/fees £561,467
2017 Director fees in wages/fees £906,725

Wouldn't it be great if we had say a Director of Communications & PR whose sole job was to keep communications open, honest, real, timely & not hidden ?

I do now think things will not change until newbies see the full year accounts - mainly because past few years have been dire - what with low bopd/receipts due to WTI and enormous write offs of goodwill. On the plus side for this full years accounts, receipts will be massively up, write offs massively down & maybe even positive goodwill added from RRDSL for some $5m as mentioned in prev RNS

In the meantime, if no new contracts added, Id expect bopd to accelerate as they do more & more workovers etc....

Whatever next....me agreeing with Razz or Razz being super upbeat ? !!!
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Loadsamoney
 
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Re: Price of West Texas Crude

Post Fri May 11, 2018 5:36 pm

This is from the corporate page...do we all agree this is being done?

CORPORATE
EXISTING PRODUCTION – generating revenues
SIGNIFICANT GROWTH – from existing assets and new opportunities
STABLE FINANCIAL POSITION – existing cash with medium-term debt maturity
ENHANCED LIQUIDITY – AIM and ASX-listed
RAMP UP IN ACTIVITY – to provide newsflow and results
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Momo
 
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Re: Price of West Texas Crude

Post Fri May 11, 2018 6:03 pm

Momo wrote:
> This is from the corporate page...do we all agree this is being done?
>
> CORPORATE
> EXISTING PRODUCTION – generating revenues Thanks to the increase in the POO we are cash generating. In the quarterlies we were making $12 pb and oil has jumped since then
> SIGNIFICANT GROWTH – from existing assets and new opportunities Don't know as they aren't telling
> STABLE FINANCIAL POSITION – existing cash with medium-term debt maturity Probably more stable than they have ever been in their history
> ENHANCED LIQUIDITY – AIM and ASX-listed ???????????????????????????????
> RAMP UP IN ACTIVITY – to provide newsflow and results 32 RNAs since 1st January
18 Price monitors
3 Perlak updates including not our fault fatalities
1 company presentation
1 new director
1 Columbia update
2 Q&A
1 quarterly
1 half year
1 RRDSL payment
1RRDSL contract
2 T&T updates
Not a lot of newsflow in 5 months so a failure on that front
Nedkellylandau
 
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Re: Price of West Texas Crude

Post Sat May 12, 2018 1:57 am

Interesting when you see it like that Ned. Quarterlies do not count as newsflow in AIM. For instance imagine what might have happened if they dad released a seperate RNS highlighting that Trinidad was cash flow positive for the first time. Or highlighting favourable tax breaks.

Eva said in an email to me that the company would be providing regular and detailed updates on the workplan.

The submission doc mentioned webcasts and frequent q and a.

The recent presentation indicated ramp up in activities and news flow.

And what do we have. Radio silence. As usual.

How many years have we said.. This will take time, and management are doing their best etc etc. They took over 4 years ago.

Would an online petition be of interest to anyone requesting the company follow up on issues and generally communicate better with shareholders as they promised they would? I'm happy to set one up
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Razzledazzle
 
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Re: Price of West Texas Crude

Post Sat May 12, 2018 10:13 am

I know, next Monday morning at 8am, lets all hold up placards outside RR Towers in London & we can sing to Eva
What do we want ?
Daily Communications
When do we want it ?
Now
What do we want ?
Daily Communications
When do we want it ?
Now

Or how about hounding Abrahams to vote down all the resolutions in Nov & then the Board will resign and we can demand to on the interview panel and can ask lots of communication questions !

Be careful, you two are starting to make Bounty sound intelligent....and pompous !

Chillax ffs its the weekend. Even OmatrollSurely is having a break !
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Loadsamoney
 
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Re: Price of West Texas Crude

Post Sat May 12, 2018 11:47 am

Loadsa
I don't think anyone wants daily updates but Razz does highlight the news about being cash positive - possibly for the first time, and the news being combined with other details.
Perhaps it isn't so much about more news but a better use of what news there is.
It is all very well the BOD doing great works behind the scenes to make the company better but damn all use to the shareholders and the SP if the results aren't announced in a manner to capitalise on investor impact.
The company needs someone with PR and marketing skills to work on contracts and maximising the PR side of the business.
We need to do something to stop the one step forward, news drought for weeks, two steps back pattern that exists.
Nedkellylandau
 
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Re: Price of West Texas Crude

Post Sat May 12, 2018 2:33 pm

Ned
NO chance in hell am I going to say I agree with you TWICE in 1 week

So I will just say, you agree with me that Range needs someone dedicated to PR & Communications & Id personally like them on the Board too as its that important

Have a good weekend
Loadsa
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Loadsamoney
 
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