d day, page-7

Hi all, not invested in MHL, though I am invested in RRS (although it's called RRL on the UK register which is where I'm based), the guys who are supposed to be taking 10% of Trinidad.

Although in profit, one thing I've learned while invested in RRS is that no project our CEO ever commits himself to ever happens on time. When he says 2 weeks, that means 6 weeks. When he says 1 month, that means 3 months etc. He gave an interview recently (30th November) saying that he was hopeful Monitor would have completed fundraising by 'the end of this year or early next year'. Now I don't know how much about your company he knows (though it's reasonable to assume they must have had discussions at some point, given they'll be partners in business), but if our CEO is saying the start of next year, that probably means it won't happen until the end of Q1 I'm afraid. Just going off past experience.

However to be fair to the guy, when the news comes through it's normally good, it just takes a hell of a lot longer than any of us would have wanted. I've got major issues with the current management of RRS, but one thing they can do well is spot a good deal (getting the show on the road in a timely manner is quite another thing entirely, however...)

Might require some patience, but this will come good in the end, I've got little doubt. The 3600bopd target apparently doesn't include the Herrera Formation which will be explored. Take this all with a pinch of salt until it actually happens, but take a look at the following document (RRS Quarterly report, but go to slide 7):

http://203.15.147.66/asxpdf/20101029/pdf/31tkmz7gdby5vz.pdf

In particular, take a look at the paragraph that says:

"In addition to the known reserves, significant potential exists in the deeper Herrera Formation...the Company is ultimately targeting an increase in the production level to between 800-1000bopd attributable to Range'.

As we only own 10% that would mean total production of between 8000-10000bopd, IF everything goes well. Of course they'll be problems along the way, there always is. But stick with it, and who knows? Could turn out to be a very good investment indeed if you're prepared to stick the course.

Like I said though, don't expect any of it to happen quickly! From a quick read of the posts here it seems like Monitor are often late at delivering stuff. Well so are RRS, unfortunately. :(