Range Resources (ASX: RRS, AIM: RRL) is continuing efforts to build up its onshore Trinidad oil assets and has signed a memorandum of understanding with one of China's largest listed oil service companies for a strategic alliance.
The fourth rig in the company's drilling fleet has undergone preliminary regulatory inspections prior to becoming operational while maintenance continues on its remaining two heavy rigs.
It recorded average oil production of 533 barrels per day for March and is currently awaiting further regulatory approvals for its Beach Marcelle waterflood program that is targeted to add between 3,000 and 3,500bpd to its production for at least eight years after receiving Petrotrin approval.
Range has also completed a MoU to form a strategic alliance with China's LandOcean Energy Services for the development of international oil and gas projects.
In addition, a number of financing opportunities, including the previously announced reserve based lending option, for its development projects in Trinidad are currently being reviewed by the company's new management team.
The company is also seeking to refinance the existing convertible bond issues.
Chief executive officer Rory Scott Russell commented: "Since joining Range in February I have been working to restructure and focus the Company's portfolio, implement appropriate financing for our projects and bring in an experienced oil and gas management team.
"We are making progress on all these fronts and the new management team is excited by the opportunities ahead, particularly in building on our world‐class onshore Trinidad asset."
At the Morne Diablo field, the company has completed and placed the QUN 148 well in the Morne Diablo field, Trinidad, into production.
Range has also drilled the QUN 149 well to a total depth of 1,400 feet in the Lower Forest horizon. The well was completed and is under production test.
Drilling is currently underway at the QUN 150 well at about 700 feet.
Following delays in sourcing equipment the sidetrack on the deeper well MD 248 kicked off from 3,234 ft. targeting a depth of 6,500 feet.
Meanwhile, Range has drilled the QU 452 well - the first development well to be drilled in the South Quarry field since 2007 - to a revised depth of 1,945 feet.
Approvals are currently being awaited to carry out further perforations at the well.
This outstep development program is expected to extend the field's shallow producing trend into new fault blocks and result in additional Proved Reserves and future development targets.
The company is also drilling the QU 453 well with rig 2 below 700 feet.
Range is continuing to pursue sale completion of its Texas assets with the buyer after it failed to meet the agreed timeframe. It is simultaneously running a process to remarket the assets in order to divest this non‐core development project.
In Guatemala, operator Latin American Resources is drilling the Atzam-5 well with results expected to be released soon.
The company is also continuing with non‐core asset rationalisation in Georgia and Colombia.
The MoU with LandOcean significantly increases Range's technical capabilities while also providing additional options for the funding of future projects.
The understanding between Range and LandOcean is set out in a non‐binding term sheet, which is subject to final, legally binding documentation.
LandOcean provides a wide variety of services across the upstream development cycle, from frontier geological studies through to engineering and procurement for development and production projects.
The company has appointed Terry Motley as its operations manager in Trinidad.
He has extensive global experience in all aspects of drilling and production operations, including Trinidad.
Notably, Motley had previously managed multiple rigs to increase oil production onshore Yemen from 2,000 bpd to 25,000bpd over a two‐year period.
He also has technical expertise in horizontal drilling, high‐pressure wells, and multi‐well developments.
Range Resources continues to focus on building its onshore Trinidad oil asset with the drilling of new wells and regulatory progress being made on the Beach Marcelle waterflood program that is targeted to add between 3,000 and 3,500bpd to its production for at least eight years.
This will unlock its largest block of undeveloped Proved Reserves of 12.8 million barrels of oil, or 75% of its total.
The company is also continuing efforts to rationalise its non-core assets in Georgia and Colombia.
Some share price catalysts ahead include:
- Drilling further wells in Trinidad;
- The start of the Beach Marcelle waterflood program; and
- Progress on the strategic alliance with LandOcean.
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