Last update: 11-Dec-2013 10:36 pm
Wednesday, December 11, 2013
Trinidad & Tobago Guardian Online
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Range to boost oil production
Australian-headquartered Range Resources Limited has told the stock exchanges in Sydney and London where it is dually listed, that it is poised to raise its production out of T&T to 4000 barrels of oil per day (bopd). Range last reported to the London Stock Exchange that it had reached the 1000 bopd milestone on July 25, 2012.
“From the board's view, Range is now positioned to fulfil its key corporate and operational goals moving forward, namely to lift and maintain production in Trinidad to 4,000 bopd by the end of 2014 and to 9,000 bopd by the end of the 2015,” said Range executive director Peter Landau in a letter to the stock exchanges.
“A key milestone in the delivery of this goal has been the completion of a comprehensive field development plan in Trinidad, compiled by management and independent technical experts as part of the process of finalising a reserve-based lending facility,” he said.
The development plan sets out the geological, operational and financial parameters for exploitation of the company's proven (P1) reserves over the next three years. This represents more than three months' work by both internal and external sources and provides a clear development framework for our initial production increase in Trinidad, the Range boss said.
“It is important to note that the development plan does not take into account any incremental production from P2/P3 reserves, prospective resources or exploration success.
The management believes it sets a very realistic benchmark to move from current production through to 4,000 bopd by the end of 2014 and 9,000 bopd by the end of 2015, through conventional and unconventional (waterflooding) work programmes,” the letter said. P2 is proven plus probable reserves and P3 is proven plus probable plus possible reserves.
In preparation for the drawdown of the reserve-based lending facility and in conjunction with the field development plan, Range said it identified the need to effectively take its drilling rigs offline and subject them to a rigorous maintenance and testing programme to ensure that drilling targets as part of the field development plan can be met and previous delays and breakdowns are avoided to the maximum extent possible.
To this end Range has employed an experienced rig maintenance manager to oversee the repairing and improving of all drill rigs owned by the company, “a process that has largely been completed,” the letter said. Range said the timing of the ramp up in production and the drilling rigs all coming back online in Trinidad is extremely beneficial with regards to the recent changes to the fiscal regime in T&T which will see significant financial benefits accrued by the company over the coming years.
In addition to the field development plan, Range said it is in advanced stages of securing additional rigs on “joint venture” terms with an oil services provider to ensure that the company's aggressive exploration programme continues with multiple Lower Cruse and Herrera targets, the Niko Resources farm-in acreage, and the potential of being awarded a block in the upcoming onshore bid round.
In mid-2011 Range acquired a 100 per cent interest in three production licences in producing onshore oilfields in Trinidad and a local fully operational drilling company which has six drilling rigs plus further completion/workover rigs and operational personnel. The three production licenses are for Morne Diablo, South Quarry and Beach Marcelle.
The Morne Diablo onshore license comprises 9,300 acres along the south coast and is subject to a farm-in agreement with Petrotrin which extends for three to five year periods and is under a royalty?tax fiscal regime. There are similar arrangement for the South Quarry onshore license which comprises 3,700 acres along the south coast of Trinidad, immediately west of the license Morne Diablo and the Beach Marcelle license for 3,500 acres near the south/east coastal corner of Trinidad.
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