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I noted earlier today how the way that AIM listed penny share oil explorer Range Resources (LSE:RRL) communicates with its investors is very odd indeed. My attention is now drawn to the way it has communicated with its investors over it operations in the Islamofascist hell hole that is Puntland. This really is curious.
You can read my earlier piece of textual analysis HERE
You can read my two most recent sell notes on the stock HERE and HERE
For what it is worth, with the shares now down at 4.5p my stance remains sell with an initial target of 1.18p. But back to Puntland where two wells have been drilled by block operator Horn Petroleum. Both were dusters. I bring you three exhibits. The first is an announcement concerning the first well released by Range on April 12. I have put certain words in bold.
The Shabeel well is currently at a depth of 2703 meters and has just completed the setting of the 9 5/8″ casing. The well drilled through primarily tight limestones and shales of Lower Tertiary to Upper Cretaceous age and encountered a 355 meter section of Upper Cretaceous sands and shales of the Tisje / Jesomma Formations at a depth of approximately 1660 meters.
The sands in this interval exhibited both oil and gas shows and petrophysical analysis of downhole electrical logs indicates a potential pay zone of between 12 and 20 meters in the section. Attempts to sample formation fluids using a wireline formation tester were not successful and thus the zone will require cased hole testing to confirm whether they are oil bearing.
At a depth of 2015 meters, a thick section of tight limestone and shales was encountered and extended to the present depth of 2703 meters. This is believed to correspond to the Upper Cretaceous Gumburo Formation.
Exhibit two is an RNS from Range on 17th May referring to the same hole. Again I highlight certain words in bold.
Range Resources Limited announces that drilling on the Shabeel-1 well on the Dharoor Block in Puntland, Somalia and has reached a total depth of 3,470 meters and has encountered metamorphic basement at a depth of 3,430 meters. Drilling has been suspended for future testing.
In addition to the previously announced 12 to 20 meter zone of significant hydrocarbon pay in the Upper Cretaceous Jesomma Formation, the well has encountered additional potential net pay sands in the Jurassic Adigrat Formation shows at a depth of 3,246 to 3,430 meters, several of which exhibited oil and gas shows.
Petrophysical analysis of the well log data indicates up to 3 meters of potential hydrocarbon pay in several thin sand units. They are not considered to warrant testing at this time, but do further confirm the existence of a working petroleum system.
Exhibit three is another Range RNS from 18th May discussing well one Puntland:
The well has been a significant success to date with the discovery of a 12 to 20 metres net hydrocarbon pay zone in the Jesomma sands. The zone needs to be commercially flow tested and this will be undertaken after the completion of the second well, Shabeel North, which will spud early June. Based on Range’s internal technical team’s review of the net pay zone and results to date, a successful flow test could result in 70 to 130mm barrels of recoverable oil from the well of which 14 to 26mm bbls would be attributable to Range.
There were subsequent statements in June which banged on with a similar theme.
Finally I turn to a statement from Horn issued on 27th August relating to Shabeel North 1 ( the second well) but also referring to the first.
The Shabeel North-1 well has reached a total depth of 3945 meters and has encountered metamorphic basement at a depth of 3919 meters. The well penetrated 149 meters of interbedded sands and shales of the Triassic Adigrat Formation with no oil or gas shows and only minor porosity exhibited on electric logs. Accordingly, the well is being plugged. As noted in a previous Puntland drilling update, the Upper Cretaceous Jesomma sands did exhibit porosity and hydrocarbon shows but produced only fresh water on a drill stem test. These sands are similar to the Jesomma sands encountered in the previously drilled Shabeel well in respect of log response and oil and gas shows. It has therefore been determined that additional testing of these zones in the previously drilled Shabeel well is also not warranted.
Ends.
I know that Jesus managed to turn water into wine very easily so maybe he has popped up again in Puntland and has managed to turn “oil and gas shows with a potential pay zone of 12-20 metres” into “hydrocarbon shows which produced only fresh water on a drill stem test”.
What the hell do I know but on a daily basis I become more confused as to how Range communicates with its investors. Keep selling.
Tom, I get you with range, a right bunch of wrong uns that couldn’t organise a gunfight in the ok coral. Never trust a business that announces their rns’s at 07:59.
What I can’t understand with your article and the sell rating to 1.18 ‘keep selling’ is what exactly is your angle.
Whatexactly are you trying to provoke? Is it for the company to come clean?