Range's Texas assets gone but money not forgotten

Range Resources (RRL) reported good progress from a well in Guatemala on Tuesday, but shares dropped almost 3% as investors expressed concern over the removal of Texas from its resources statement.

The Atzam #5 oil well in Guatemala, in which Range has a 32% interest, is said to be "drilling on schedule", and has currently reached 431 feet with a planned target depth of 4,100 feet.

The well is targeting the same carbonate reservoirs as the producing Atzam #4 well. It spudded on 15 January, and is expected to be completed within 40 days.

Investor view

But Interactive Investor discussion board users were more interested in the fact that Range had removed its Texas assets from the portfolio resources statement included in the announcement, and blamed this for the declining share price.

The Texas assets were meant to have been sold in a $30 million (£18.1 million) deal finalised in August 2013, but payment has not been received to date, and many investors are beginning to lose hope of ever seeing the cash.

"I'm in the camp that [believes] the Texas money isn't coming," commented user 'Dutchgold'. "I hope wrong but on form the odds would be in my side."

'Gooffy' added: "This Texas saga needs to end; it’s killing the share price."