Range Resources (LON:RRL,ASX:RRL) spiked more than 8 per cent in afternoon trade in London after broker Old Park Lane initiated coverage of the stock with a buy and bullish 28.1 pence a share price target.
It follows a “very positive update” last week from oil and gas explorer, which has assets in the US, Caribbean, Georgia and Puntland in Somalia.
Old Park Lane points out that recent fracture stimulation work at the North Chapman Ranch Project in Texas has yielded “dramatically increased production from the Russell Bevly #1 well, while further “frack” work at the East Texas Cotton Valley Prospect will commence within a fortnight.
Range has also finalised the details of an aggressive drilling programme in Trinidad which is expected to commence within the next 45 days.
“(Its) progress in Texas and Trinidad continues to de-risk the business while maintaining exciting exposure to highly attractive exploration upside in Georgia and Puntland.
“With Range participating in four high impact exploration wells over the next six months, we believe that investors should see the recent weakness in the share price as an opportunity to buy the shares.”
At 2.45 pm, the shares were up 1.36 pence at 17.11 pence each. In the past year the stock has registered a three-fold increase in value.