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The second Puntland well is a duster. No oil. Game over. Consequently you should not wait for the next promote – as soon as you can sell shares in AIM listed oil stocks Red Emperor (RMP), Range Resources (RRL) and TSXV listed Horn Petroleum. I warned you to sell Range on Friday. Predictably I got a stack of abuse (you do not understand, blah, blah, blah) and so I explained again over the weekend (no doubt generating more anger from those who have fallen in love with this share). But now you need to look at this matter dispassionately and simply bail.
The announcement that the well is a duster can be found HERE
My original sell call is HERE
My Weekend follow up is HERE
Red Emperor and Horn are largely Puntland plays. As such they really are holed beneath the waterline. Do not wait for the blather, just sell. Puntland devotees will note that the partners say that they plan to carry on but a) Puntland is the most unstable Islamofascist hell hole on this planet and I am not sure anyone can make Long Term plans there and b) Drilling onshore here ( let alone offshore – that is just fantasy) is expensive and these companies are undercapitalised. I would not be surprised if no more wells are in the end drilled here by the consortium.
And so to Range. I now value Puntland at nil. The company is close to running out of cash but says that it will have a new debt facility in place by September. It better deliver on that because otherwise it is game over. I would not buy the shares at any price until that facility is secured.
At this stage its Colombian and Georgian assets are so early stage that they are worth shrapnel. And so we have US assets which Range says it wishes to sell for $25-40 million and Trinidad which is now generating $1 million free cash per month. That number should increase as Range brings new wells onstream but where exactly will it find the cash to bring those new wells onstream?
So what is Range worth? With gas prices where they are I cannot see the US sale being achieved quickly or at anything like $40 million if it happens at all. Net of transaction costs etc I will give this a valuation of $20 million (£12 million). Trinidad is clearly worth more, if sold. Two times current cashflow values it at £16 million. But if it stays within Range then it is not even generating enough cash to cover the bloated PLC costs of almost £1 million a month. Charitably I value it as twice current cashflow add in the US at £12 million and ignore this critical issue of how to fund PLC costs let alone developing Trinidad or the next blue-sky projects. That gives us a valuation of £28 million or (with 2.357 billion shares in issue) 1.18p per share.
Until the debt facility is confirmed you would be crackers to buy Range at any price. If it is secured I might just look again, at 0.75p (allowing a margin of error and enough upside potential to justify the risk) but I would not be rushing. After all the hype of Puntland, credibility – less than three (non working) days after its reassuring Q&A statement for shareholders – is zero.
In case there is any uncertainty here. Puntland 2 is a duster, Puntland is worthless, Range, Red Emperor and Horn are all sells.
“I must admit that in my heart I would rate this as a slam dunk sell but there is just a chance that the shares are cheap. Let me explain.”
How many would sell on such a two faced view?
Thanks Tom i will be buying these first thing tomorrow! Just like Zoltav when you slated it at 2.58p and now sits at 3.98! Can i suggest you find another career path i hear Aldi’s are having a recruitment drive, you can add up the price of beans on one hand.
Dear Stockstrader1966
You are famous
https://www.advfn.com/newspaper/tom-winnifrith/8704/range-resources-correction-fair-price-not-2-4p-but-1-18p-lucian-miers-now-shorting-zoltav-thoughts-sell
Let us know what else you own, you clearly have a penchant for buying hugely overvalued stocks. And please do fill your boots with range & why not buy a few more Zoltav while you are at it. Am sure there will be many keen to sell to you in both cases.
Best wishes
Tom Winnifrith
Nice one winniwigger, Zoltav is now at 5.5p lol
Youll have egg on your face again when horn and rmp shoot up again when next drilling commences.
Got any other sell recommendations so i can buy them?
Tom, heard you got gang banged by 5 black guys the other day lolololol they shoved but plugs up your huge ass lololol
ffffffffff uuuuuuuuuuuuuuuuuu
shit tipster lololololololol
Clive,
Interesting posts – care to elaborate?
The thing is, will this breaking information impact the share price?
Capitalism depends on it.
Admin : Can you remove these abusive comments please