Ann: Placement and Option Over Onshore Trinidad P, page-28

re: Ann: Placement and Option Over Onshore Tr... Thanks for that Hadas ..

Here is the lowdown of what MHL has at its feet - given they can round up the remainder of the Sophisticated investors cash ... could be linking into something worthy imho

Trinidad - Onshore

On 12 July, Range also announced the signing of a Heads of Agreement to acquire a 10% interest in three production licences in producing onshore oilfields in Trinidad, together with significant location onshore drilling operations. This agreement costs $2million on signing of the definitive Agreement and a further $2.25million on formal completion of the acquisition.

Currently the fields are producing 700 bopd, but in line with the Range philosophy of buying assets with scalable potential, they believe that, based on known reserves, it is possible to increase that output to 3,500 bopd within 36 months . That would amount to an annual revenue attributable to Range (before costs etc) of somewhere in the region $9million, based on constant production @ $70/barrel oil.

Known Proved and Probable reserves amount to 4.8 million barrels and undeveloped Prospective resources of 20 million barrels. The Proved and Probable reserves alone would equate to an attributable value to Range (@ $70 oil) of $34million (before costs of extraction etc).

But it doesnt end there! There is further significant potential from deeper formations hosting substantial producing reserves on adjacent blocks including one reservoir hosting some 30 million barrels.

The fact that Range is carried on initial development expenditure is a bonus and ultimately, with the successful drilling of deeper formations, the company has an ultimate target of increasing the production attributable to Range, to some 800-1,000 barrels . This, at $70 oil, would amount to potential gross revenue attributable to the Company of $20 25million per annum.

Given the scalability of production and also the potential for material resource expansion on the license area, the payback on Trinidad could be quite significant, especially when related to acquisition cost of just $4.25million.