RRC
Posted: Mon Jan 23, 2012 4:24 pm
Sweet 16 Growth Portfolio member Range Resources (NYSE: RRC) announced January 23 that its proved resources increased to a record high 5.1 trillion cubic feet equivalents as of December 31, 2011. The new report represents a 14 percent increase over year-end 2010, and that adjusting for the sale of its Barnett Shale properties, Range's increase would have been 43 percent.
RRC is in the Sweet 16 for two reasons:
> The company has publicly stated that it now estimates that its leasehold holds more than 56 TCFE of Unrisked Reserve Potential (this from a company that has a history of beating its own guidance). This includes more than 1.6 Billion bbls of liquids
> RRC's liquids production is expected to increase by more than 45% in 2012
I am expecting very strong year-end reserve reports from all of the Bakken Shale companies in our Sweet 16. 3rd party reserve engineers are expected to assign more proven reserves to the Bakken and the Three Forks now that they have seen another year of preformance. CLR has told me that their new Bakken wells should produce over a million bbls of oil just from the Bakken. Most of their locations also have Three Forks potential. Hopefully, the market will react to these reports like it did on RRC today.
RRC is in the Sweet 16 for two reasons:
> The company has publicly stated that it now estimates that its leasehold holds more than 56 TCFE of Unrisked Reserve Potential (this from a company that has a history of beating its own guidance). This includes more than 1.6 Billion bbls of liquids
> RRC's liquids production is expected to increase by more than 45% in 2012
I am expecting very strong year-end reserve reports from all of the Bakken Shale companies in our Sweet 16. 3rd party reserve engineers are expected to assign more proven reserves to the Bakken and the Three Forks now that they have seen another year of preformance. CLR has told me that their new Bakken wells should produce over a million bbls of oil just from the Bakken. Most of their locations also have Three Forks potential. Hopefully, the market will react to these reports like it did on RRC today.