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09 Jan | Purchase: Range Resources

We’ve been eying them off for long enough. We listed them in December 2010 as one of 17 potential speculative investments to watch in the year ahead…and they delivered. At the time they were trading around six pence. During the early months of 2011 they’d rocketed to 20 pence. Then they were mauled by a H2 from hell (okay, which AIM shares weren’t). A duster in Georgia certainly didn’t help matters and ‘that Euro thing’ obviously played a part. But sub seven pence?

Over the past few months they’ve continued to cram our email inbox with price alert after price alert as they’ve plunged deeper downward through little or no fault of their own. If only I had some spare cash!

They’ve been the primary cause of many a sleepless night of late as I toss and turn wondering if I’d wake to 50% gains and have missed that RRL bargain boat…yet again.

And today – with imminent Puntland spudding patter reaching fever pitch on the UK financial bb’s – I finally succumbed. I bought a bunch of Range Resources (RRL.L), read a little bit more, returned to my broker and did it all again. Even sold off a tranche of my beloved Berkeley Mineral Resources to do it.

All this on word of an upcoming spud I hear you cry? Well, this ain’t no ordinary well! For starters it’s the first in war-torn Somalia for 20 odd years and the first in the region since the 60’s, I believe. These exploration wells are targeting oil in place of – in the ballpark of – wait for it, one billion barrels (with estimated recovery of 40%). That’s a pretty big ball park and Range is stepping up to the plate with a 20% share. Okay, enough of the baseball metaphor. Needless to say, this well has been a long time in the making and getting to this point is an achievement in itself.

So yes, today we bought 13,648 shares at 8.525 pence then a further 39,769 at 8.46 pence. For a total of 53,417 shares averaged in at 8.477 pence.

So, to take a little step backwards, here’s the spiel, for those of you new to the exciting world of Range Resources:

Range Resources Limited is both an Australian Stock Exchange-listed and AIM-listed exploration and production Company, with its principal activities directed towards finding and delineating hydrocarbons in Puntland, Somalia; the Republic of Georgia, onshore Texas, USA and Trinidad.

With the planned onshore exploration drilling program in Puntland and Georgia coupled with the exploration and development programs in Texas and Trinidad, Range is well on its way to establish itself as a diversified international oil and gas exploration, development and production company with significant upside potential.

And for those of you who’d rather watch than read (and like me have no idea what delineating hydrocarbons means), through the magic of the interweb, I’ve managed to borrow a little footage from our good friends at Interactive Investor:

It’s a little dated (October 2011) but it gives a nice overview of what the affable Aussie, Peter Landau and his troops at Range are attempting to implement. And I for one, am pretty impressed.

So with Texas and Trinidad ticking along nicely and Somalia about to begin it’s thing, I’m hoping it’s exciting times ahead and re-ratings aplenty for Range Resources.

I’ll leave the last words to Mr Landau himself in this great little Q and A session – once again borrowed from our friends at Interactive Investor:

Please remember to do a ton of your own homework and gather information from a number of sources. The Range Resources website is as good a place as any to start. I ain’t no expert and this ain’t no financial advice. I’m just a mug punter who loses as many as he wins (I once invested in a company then went bust within a fortnight – true story).

Oh, and the second part to that India Power post is definitely on its way.

Thanks again for dropping by.

Paul
rsvp@investorsoiree.co.uk