Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Range Resources Moves To Unlock Trinidad Oil And Gas Potential

Range Resources (ASX: RRS) is progressing with optimisation work at its Trinidad oil and gas operations and has appointed Ash Mangano as its Trinidad vice president.

Executive director Peter Landau said the company is in the final stages of completing a significant reserve based lending transaction and was seeking additional leadership as it focused on unlocking the potential of its Trinidad assets.

"Ash has deep knowledge of the oil and gas industry and brings with him a wealth of experience within the industry at both corporate and operational levels and will provide valuable experience as we continue to grow our business," Landua said.

"Ash will continue to drive and further develop the strategic agenda that we have set out, to generate competitive returns for our shareholders."

Mangano, who was formerly the company's business development manager will oversee Range Trinidad's corporate activities alongside Trinidad chief operations officer Walter Cukavac.

The company has also engaged a senior reservoir engineer to expedite the Beach Marcelle and Morne Diablo waterflood projects.

Appointments

Mangano has worked on a diverse range of offshore and onshore oil and gas projects in North America, Oceania, and the West Indies.

He spent the early part of his career as a drilling engineer with Halliburton Australia and Halliburton Canada, before assuming a Commercial Manager role with Baker Hughes ‐ regionally responsible for Australia, New Zealand, and Papua New Guinea ‐ and subsequently Contract Manager for CB&I where he managed a US$1 billion contract with Chevron Australia.

Mangano has assisted and successfully managed projects from a technical and commercial perspective, spanning the oil and gas sector, in a multitude of international environments.

The new senior reservoir engineer has more than 15 years' experience in enhanced oil recovery projects and reservoir characterization in Trinidad and will also assist with characterising all target reservoirs to ensure the most high‐impact wells are drilled with priority.

Both the Beach Marcelle and Morne Diablo waterflood projects are high‐impact, low‐cost, and low‐geological risk projects, containing 12.7 and 1.1 million barrels of 1P reserves respectively.

These could add a combined 7,000 barrels per day of oil to the company's production at peak output levels.

The company said that as it continues the Morne Diablo extensive drilling program, gains approvals for the Morne Diablo and Beach waterflood programs, and plans the Niko farm‐in project, it would employ additional engineers and management to the various projects.

Trinidad Operations

Range has scheduled the next 10 wells to be accessed by the company's production and workover rigs along with re-entry of the QUN 16 well using a production rig.

This will add new reserves and production while further extending the Lower Forest trend to the east of the QUN 16 well and establishing a large area for low risk infill drilling between the well and the current Lower Forest development.

It added that it is on track to have all six of its rigs operational by the third quarter of 2013 with Rig 6 having successfully completed annual certifications and inspections.

Rig 6 will be used for heavy workovers of the wells in Morne Diablo to swiftly ramp up production prior to having it converted back to a drilling rig and moved over to South Quarry, where a production rig is currently performing well workovers.

It has also completed repairs on Rig 8 and is in the process of mobilising back to the MD248 location to resume drilling of the well to its planned target depth.

After completing MD248, Rig 8 will move to a new location to spud and drill a well targeting the Herrera formation.

Written approval for the Morne Diablo waterflood expansion project is also expected soon with the project anticipated to come into production in the early fourth quarter 2014 at an estimated 750bpd of oil.

Bid round update

The company is continuing to evaluate the 2013 onshore bid round data package and preparing its submission with respect to various licenses being offered, in line with the Company's strategic growth plan.

This round has been extended by Trinidad's Ministry of Energy to 31 October 2013.

Niko farm‐in update

Work is also continuing towards the preparation of final documents for the Company's proposed farm‐in on Niko Resources' (TSE: NKO) Guayaguayare Block.

This represents the largest addition to Range's Trinidad portfolio to date, increasing the Company's acreage position by more than 280,000 acres.

Notably, Guayaguayare contains several producing fields within the block boundaries including Range's Beach Marcelle Field, combining shallow drilling targets with significant exploration potential and an expansive area within a highly prolific petroleum system.

This offers Range a unique opportunity to lever its fleet of drilling rigs and established operating presence in the area to grow what is rapidly becoming a core area for the Company.

Guayaguayare block comprises 280,170 shallow acres and 293,999 deep acres. It is situated along trend with the most prolific oil and gas fields in Trinidad and lies in the transition area between the transpressional Southern basin and the extensional Columbus basin.

There are four prospective onshore fields within the Guayaguayare Block, each considered to have significant potential for oil, whilst the offshore structural complex is believed to have significant potential for large gas discoveries with several large structures mapped.

Range can earn up to 50% of Niko's existing interests consisting of 65% of the onshore portion and 80% of the offshore portion of the license area by funding the drilling of two onshore wells and a potential appraisal well.

Analysis

Range Resources is firing on all cylinders in Trinidad with new executive appointments and a ramp-up in operations targeted at unlocking further value in its producing operations.

Notably, completion of the reserve based lending transaction as well as the Niko farm-in will likely lead to a marked acceleration in the company's activities.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.