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Range Resources

LandOcean failure

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

LandOcean failure

Post Mon Jun 04, 2018 12:35 pm

As time goes by we seem to be becoming more aware of the apparent failings of Landocean. Why did we get what appeared to be such a good deal with favourable payment rates and why did Landocean bail out of T&T?
When Landocean came on board they were heralded as world leaders in secondary recovery including waterflood. They spent months and millions of our dollars on geological and technical surveys, allegedly to get the best results, promising several thousand bopd by end of 2017.
Look where we are now.
Few of us, if any, have expertise in waterflood but even I could have established that we had enough "water" for a waterflood and this obviously doesn't seem to have been the case. Take one step back.
If you are a world leader in waterflood you should be aware of what pumps are required and what is available - not the case, another step back.
Morne Diablo waterflood is so problematic that further work has been halted aqnd poor production rates. How come? What about the millions of dollars spent on surveys - at least two steps back!

Lanocean has charged us millions but given very preferential payment schemes. Is this hindering legal action against them?
In my view we should be chasing Landocean for reimbursement and compensation on the cock up that is apparently waterflood.
It may not be the Chinese way of working but should we be taking action against LO.
Some views for/against would be appreciated
Nedkellylandau
 
Posts: 1925
Joined: Mar 2013
Location: Lost on the Range

Re: LandOcean failure

Post Mon Jun 04, 2018 1:34 pm

Neddy

Some good questions there but TBH Range will never answer them
Just like they have swept Liardau under the carpet & don't want any independent auditor poking around to uncover past dodgy dealings. No harm in asking at next Q&A but dont be surprised if you get the "standard" response !
Re your question, going after them re poor work etc will all depend on whats written in the contract & I bet there is something in it about no guarantee of success etc...

And what about connections between LandOcean & Abrahams ?

https://markets.ft.com/data/announce/fu ... TV5HK8LANR
says Kiki Wang is an Abrahams representative
On Range site, it says she was Exec Dir of LandOcean company

And it was Abrahams who voted down that remuneration vote in Nov last year

Is this all going to get messy come Nov 2018 if the SP hasnt significantly recovered back to there they invested ?
Probably but luckily we hold on to the FACT that this years accounts will be MILES BETTER than last 2 years of major write offs & low bopd and low WTI. And that should trigger a SP correction/recovery

Anyway, how long before we get the 900 bopd RNS ? & In 6 weeks time 280 million options will be wiped off the books too
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Loadsamoney
 
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Joined: Mar 2012

Re: LandOcean failure

Post Mon Jun 04, 2018 10:46 pm

Ned, go back and read the CPR in the admission doc last year. The auditors seem positively bemused by LandOcean...there are some pretty damning points made about their performance
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Razzledazzle
 
Posts: 2164
Joined: May 2012

Re: LandOcean failure

Post Mon Jun 04, 2018 10:48 pm

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Razzledazzle
 
Posts: 2164
Joined: May 2012

Re: LandOcean failure

Post Tue Jun 05, 2018 9:13 am

Razzledazzle wrote:
> Ned, go back and read the CPR in the admission doc last year. The auditors
> seem positively bemused by LandOcean...there are some pretty damning points
> made about their performance

Razz
The question is should we be pushing LO for a massive reduction on the $40 mill. spent on their waterflood work?
Nedkellylandau
 
Posts: 1925
Joined: Mar 2013
Location: Lost on the Range

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