In the absence of anything remotely exciting, I'll put forward my current thoughts on my favourite topic - Net Asset Value:
North Chapman Ranch - if the RB well affirms reserve estimate and therefore confirms value at $226m cash flow net to Range, then this puts the NAVPS at 15.2pps.
If Red River County is then confirmed to hold the expected 220,000bbls recoverable average from each of 21 wells at a cost of $7.15/bbl, this values the field at $322m cash flow, $43.75m net to Range, a NAVPS of 4.27pps.
So that gives us a NAV estimate of 19.47p per share based on the 2 Texas fields alone.
Admittedly that's based on two 'ifs' - however I would add they aren't over-optimistic given what we know to date.
Factor in we are currently trading at 4.5p compared to 2.5p pre-Texas.
Now, given that I haven't even allowed for the A$10m extra cash now sitting in the bank, or the imminent acquisition, or even Georgia and Puntland, it looks like we've bagged one of the bargains of the century so far.
I reckon once the revenues from Texas start to rise from the depths of the unknown, so will the SP.
Any news re. Puntland or Georgia is just going to add to the fervour.
I think I am going to re-evaluate my targets....
Does that get anyone even mildly excited then, on a day of general gloom?
DD, patiently awaiting the news....
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