Range Resources Limited Trinidad Operations Update (9297X)
August 16 2018 - 2:00AM
UK Regulatory
TIDMRRL
RNS Number : 9297X
Range Resources Limited
16 August 2018
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE
("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE
PUBLIC DOMAIN.
TRINIDAD OPERATIONS UPDATE
Range, an international oil and gas company with assets in
Trinidad and Indonesia, and an oilfield services business in
Trinidad, is pleased to provide an update with respect of its
Trinidad operations.
Infrastructure upgrade programme
Range is pleased to advise that it has commenced the sales
facilities upgrade as part of its ongoing infrastructure
modernisation activities at the Beach Marcelle field. These
upgrades are expected to provide a greater resilience in the
production infrastructure and accommodate production growth at the
field. The Company plans to undertake the following activities as
part of the programme:
-- Addition of a new tanker truck unit;
-- Installation of a new transfer station;
-- Installation of a new 500-barrel settling tank;
-- Installation of a new Lease Automatic Custody Transfer unit; and
-- Upgrade on two 500-barrel sale tanks.
The upgrades are expected to be completed over the next 4 months
and will be funded from the existing cash resources.
Drilling programme
As previously announced, the Company plans to drill two new
development wells as part of its work programme this year. The
Company is pleased to confirm the details of the two wells which
have been prioritised for drilling.
Both wells are located on the North-East area of the Beach
Marcelle field. The North-East area has an estimated 3.5 mmbbls of
oil in place, of which only 6% has been recovered to date. The
Company estimates that at least a further 10% could be produced
from the area through primary recovery (additional 0.3 mmbbls).
The wells drilled on this area in the recent years have shown
the best production results and, in the Company's view, have
significant potential. This includes the GY 684 well which was
drilled by Range in December 2017. The well was successfully put
into production at a stabilised rate of 120 bopd and has produced
over 12,200 barrels of oil to date. There are also a number of
historic wells on the area which have demonstrated strong
production performance. One of these wells (the GY 602 well) has
been producing for over 50 years with over 180,000 barrels of oil
produced to date.
The first well will be a directional well drilled from the
existing GY 684 location. The second well will be drilled from a
single new drilling pad. The drilling pad is suitable for drilling
two additional follow-on wells, which are planned for drilling next
year, subject to successful results of the first two wells.
Each well will be drilled to a total depth of approximately
4,300 feet, targeting the Lower Gros Morne formation. The wells are
expected to produce between 70-100 bopd each.
The wells are planned for drilling during Q4 2018, once the
majority of the sales infrastructure upgrade at the Beach Marcelle
field has been completed. The drilling operations will be
undertaken by the Company's in-house oilfield services provider
RRDSL.
Contact details
Cantor Fitzgerald Europe
Range Resources Limited (Nominated Adviser and
Evgenia Bezruchko (Group Corporate Broker)
Development Manager) David Porter / Nick Tulloch
e. admin@rangeresources.co.uk (Corporate Finance)
t. +44 (0)20 3865 8430 t. +44 (0)20 7894 7000
Qualified person review
The information contained in this announcement has been reviewed
and approved by Mr Lubing Liu. Mr Liu is a suitably qualified
person with over 20 years of industry experience. He holds a BSc in
Petroleum Engineering from the Southwest Petroleum University,
China and is a member of the SPE (Society of Petroleum Engineers).
Mr Liu holds a role of a Chief Operating Officer and Trinidad
General Manager with the Company.
The reserves stated in this announcement are prepared in
accordance with the definitions and guidelines of the SPE Petroleum
Resources Management System (SPE-PRMS). The reserve figures for
Trinidad are reported net, including the volumes in respect of the
notional over-riding royalty, which is paid in the form of a tax to
Petrotrin. The reference point is defined as the point of sale
volumes.
The reserve and resource estimates were calculated using both
the deterministic and probabilistic methods. The probabilistic
method was used to provide a total oil reserves valuation at a
range of oil prices.
Glossary - SPE Definitions
bopd - barrels of oil per day.
mmbbls - million barrels of oil.
Note relating to statutory disclosure of significant
shareholdings
Statutory disclosure of significant shareholdings (as defined in
the AIM Rules) is different for Australian companies and may not
always ensure compliance with the requirements of Rule 17 of the
AIM Rules. All shareholders who are holding (directly or
indirectly), 3% or more of the issued and outstanding Ordinary
Shares are requested to notify the Company without delay of any
changes to their holding which increase or decrease such holding
through any single percentage. Likewise, shareholders who acquire
3% or more of the issued and outstanding Ordinary Shares are
requested to notify the Company without delay.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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