Range Resources continues development despite low oil prices

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Sharecast News | 27 Jan, 2016

Updated : 09:52

Range Resources was pressing ahead with development at its Trinidad sites, despite the low oil price environment causing serious uncertainty.

The AIM-traded resources firm saw its oil and gas production decrease by 5% from the previous quarter, to 547 barrels per day.

It blamed the decrease on a "combination of factors", including a lack of new wells brought into production during the quarter and the natural decline of existing wells.

Range Resources continued its development drilling programme, with well MD 42N at Morne Diablo in Trinidad on production, and producing an average of 21 barrels per day during the quarter.

Well GY 180SE at Beach Marcelle, onshore Trinidad, had been perforated during the quarter and its performance was being observed. Well GY 161 S, also at Beach Marcelle, had its log evaluation completed with a total of 130 feet of net oil sand encountered.

That well had been perforated as well, and was producing around 12 barrels of oil per day.

Additionally, Range Resources perforated a new upper zone on the existing QUN 47 well in Morne Diablo, which was now flowing at a stabilised rate of 50 barrels per day from the new zone.

The outfit said it had also obtained a number approvals for Beach Marcelle and Morne Diablo waterflood projects during the period.

"Initial water injection on Morne Diable commenced during the quarter, with 12 wells approved for conversion to water injectors", the company's board said in a statement.

"The company also commenced an implementation plan on the South East block of the Beach Marcelle waterflood project", it added.

Three additional new drilling rigs arrived in Trinidad during the quarter, though the company was "reviewing its work programme for 2016 given the continuing low oil price environment", the board explained.

Range Resources reported capital expenditure of $1.7m (£1.19m) in the quarter, down from $4.5m in the previous quarter. Its cash balance was $21.9m, down from $24.9m in the previous quarter.

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