Headlines
• Trinity Exploration and Production (LON:TRIN) – Right Idea, But…:The bigger issue for the Company over the next few months is delivering the message to the shareholders about where the Company is post the successful balance sheet restructuring (assuming it happens), where the value is in its portfolio, and where the growth will come from.
• Range Resources (LONRRL/ASX:RRS) – Not Really a Reserves Update at All: If this is evidence of how the Company is now being run, then we would strongly suggest that the attention to detail and understanding of the business, even on the most basic level, is lacking, and needs addressing if the undoubted value that exists within the asset base is realised for the Company's owners. That's said, the creditors will need to be satisfied first if ever there is to be value leftover for equity holders.
News Items
Trinity Exploration and Production (LON:TRIN) – Right Idea, But…
At a time when the management team needs to have the maximum availability of talent at its disposal, in order to focus on maximising the technical expertise on its problems, which is a lack of cash flow. All management resources need to be comprised of anything and everything required to identify, unlock and realise value for the Company's shareholders.
While we have no doubt as to Nirmala's legal expertise, or her suitability for the role, that it is not a technical appointee is creating passenger that the business can ill afford, unless that is, we are missing something that full time legal representation covers off.
The bigger issue for the Company over the next few months is delivering the message to the shareholders about where the Company is post the successful balance sheet restructuring (assuming it happens), where the value is in its portfolio, and where the growth will come from.
Range Resources (LON:RRL/ASX:RRS) – Not Really a Reserves Update at All
We are not really sure what to make of today's announcement which is a reserves update, but when you read it, is anything but. Yes, we agree that it has its roots in the 2014 reserves statement, but simply adjusting the data for production and adding in an estimate for the technical recovery of the assets based on the Company's data and drilling contractor does not constitute a reserves update.
If this is evidence of how the Company is now being run, then we would strongly suggest that the attention to detail and understanding of the business, even on the most basic level, is lacking, and needs addressing if the undoubted value that exists within the asset base is realised for the Company's owners. That's said, the creditors will need to be satisfied first if ever there is to be value leftover for equity holders.