Range spud QUN 161 development well in Trinidad

Range Resources advises that the QUN 161 development well in Trinidad successfully spudded on 9 September 2017.

The well is drilling ahead to a total depth of 2,200 feet, expected to take approximately two weeks to reach target depth. It is located at the Morne Diablo field and is targeting the Lower Forest and Upper Cruse horizons.

The well is being drilled by RRDSL, an established oilfield services provider which Range is in the process of acquiring. The well is being drilled using rig 18 (with a drilling capability of 1,500 metres). Rig 18 is one of the newer rigs in the drilling fleet and has already been used to safely and successfully drill 3 wells onshore Trinidad to date.

RANGE RESOURCES at a glance

Range is an exploration and production company listed on ASX and AIM. Range is focused on growth through acquisition of transformational new projects, whilst continuing production and reserves growth in Trinidad. Range additionally holds 20% interest in the Guatemalan project in Guatemala and an interest in Block VIa in Georgia via its 45% shareholding in Strait Oil & Gas.

For the quarter ended 30 September 2016, the Company’s oil production was 40,888 barrels (average of 444 barrels of oil per day (“bopd”)) net to Range. Whilst the average oil production was unchanged from the previous quarter, during September 2016 the Company saw an increase in production as a result of a development drilling programme and workovers with exit September 2016 production in excess of 600 bopd net to Range.

Range continues to focus its efforts on longer term production growth from waterflood projects. The Company’s production guidance of 2,500 bopd net to Range by the end of 2017 remains unchanged.

Reserves
During the quarter, the Company announced the results of a reserves audit compiled by the independent petroleum consultants, Rockflow Resources Limited as at 30 June 2016. The audit showed an increase in the Company's total 2P reserves in Trinidad by 11% from the previously reported 22.0 million barrels of oil equivalent (“mmboe”) (30 June 2015) to 24.4 mmboe, which validates the quality and potential of the Trinidad assets.

Trinidad operations

The principal activity of the Group during the financial year ended 30 June 2016, was oil and gas exploration, development and production in Trinidad.

The Company holds 100% interest in three onshore production licences - Morne Diablo, South Quarry and Beach Marcelle, as well as interests in two exploration blocks - St Mary’s and Guayaguayare.

Given the continued lower oil price environment and in line with ongoing cost management, during the period the Company completed a review of its work programme for 2016 (calendar year). As a result, the Company identified implementation of its waterflood projects as the highest priority, which have subsequently been the focus of operations.

Production
The Company’s oil and gas production for the year ended 30 June 2016 in Trinidad was 193,868 bbls (average of 531 bopd) net to Range. Production during the year was broadly unchanged from the previous year (2015: average of 562 bopd). This production is in line with internal expectations, given a limited number of development wells drilled during the period as well as reduced number of workovers undertaken.

Range continues with implementation of its waterflood projects and completion of the development work programme, aiming towards achieving production guidance of 2,500 bopd by the end of 2017 (calendar year).

Reserves
Range commissioned an independent reserves audit as at 30 June 2016 for the Company’s licences in Trinidad. The audit report was compiled by the independent petroleum consultants, Rockflow Resources Limited (“Rockflow”).

The audit showed an increase in the Company’s total 2P reserves by 11% from the previously reported 22.0 MMBOE (30 June 2015) to 24.4 MMBOE. The reserve increase was a result of the adoption of a wider range of in-place volumes, and recovery estimates from waterflooding for the Beach Marcelle licence.

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