Range Resources (ASX:RRS) has noted the re-tracement in its share price and said it is not aware of any reason for the weakeness.
In fact, Range is scaling up production in Trinidad, where production has increased by over 30% since April.
Further significant increases are expected as more wells come online and all six rigs are used simultaneously, following maintenance upgrades.
Range is also in the final stages of completing its reserve based lending facility for Trinidad with key documentation agreed and final completion and draw down expected shortly.
The RBL will further accelerate the recent production growth for the company with significant operational expansion forecast upon drawdown.
In addition, well economics have improved with the implementation of the previously announced reductions in overriding royalty rates on the Morne Diablo and South Quarry fields.
Range noted it is also on track to receive the proceeds of US$25 million from the sale of its Texas asset by the end of this month.
Range has outlined it is committed to adding shareholder value from its operations as well as corporate initiatives.
Acquisition of International Petroleum
Range said it is committed in principle to the acquisition of International Petroleum pending confirmation of the terms of International Petroleum’s proposed sale of its Russian assets for cash.
June quarter production
Gross production for the June quarter was as follows:
- Gas 169,000 Mcf of which Range's Interest was 37,000 Mcf
- Oil 66,634 bbl of which Range's Interest was 60,963 bbls
Speculative Buy recommendation
In June, Range received a Speculative Buy recommendation with a price target of 10p (A$0.165), or more than four times the company’s share price of 2.98p, from London-based broker Beaufort Securities.
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