Independent PW10 DCF valuation of Range's net interest of US$248m
Based on the reserve numbers cited above following success of Russel Bevly Well, Lonquist’s estimated net undiscounted cash flow value to Range, along with PW10 discounted cash flow based on Nymex forward strip prices reported on 31 December 2009, following reductions for royalties, opex, capex, production taxes etc as follows:
| Undiscounted $US Category | Undiscounted (US$) | PW10 (US$) |
|---|---|---|
| Total Undiscounted Cashflow (Range's net interest) | 412m | 248m |
| Proved (P1) | 100m | 69m |
| Probable (P2) | 60m | 37m |
| Possible (P3) | 252m | 142m |
A copy of Lonquist’s North Chapman Prospect - Estimated Future Reserves and Revenues for Range can be found on the website and contains further details on the assumptions on which these valuation estimates are based.
- Unit Texas Rig #35 on Smith #1 well
- Smith #1 well processing facilities
Independent reserves assessment completed by petroleum consultants, Lonquist & Co LLC showing gross and net reserves of:
| Category | Natural Gas (Bcf) | Oil (Mmbbls) | Natural Gas Liquids (Mmbbls) |
|---|---|---|---|
| Proved (P1) | 62.4 | 4.8 | 4.5 |
| Probable (P2) | 34.6 | 2.7 | 2.5 |
| Possible (P3) | 142.5 | 10.9 | 10.3 |
| Total Reserves | 239.5 | 18.4 | 17.3 |
Set out below is Range’s attributable interest in the gross recoverable reserves on 25% of the Smith #1 well and on 20% of the remaining wells assuming the exercise of certain clawback provisions by joint venture partners occurs following the success of the Smith #1 and Russell-Bevly wells:
| Category | Natural Gas (Bcf) | Oil (Mmbbls) | Natural Gas Liquids (Mmbbls) |
|---|---|---|---|
| Proved (P1) | 12.7 | 1.0 | 0.9 |
| Probable (P2) | 6.9 | 0.5 | 0.5 |
| Possible (P3) | 28.5 | 2.2 | 2.1 |
| Total Reserves | 48.1 | 3.7 | 3.5 |
December 2011 Mining Maven
Shareholder Update 2011
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Old Park Lane Capital (March 2012)
Shabeel-1 exploration well update
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