Junior oil explorer Range Resources announced Tuesday that it welcome the approval of new fiscal incentives first proposed by Trinidad and Tobago's Minister of Finance and Economy last autumn.
In September 2013 the Trinidad government announced in its Budget Statement that from 2014 to 2017 oil and gas firms would be able to recover 100 percent of their costs in their first year of exploration. From 2018, they will be able to recover 50 percent of their first year's exploration costs, 30 percent of their exploration costs in their second year and 20 percent in their third.
Similar incentives have also been introduced for field development.
This month's approval of the measures has been welcomed by Range, which said they "especially reward" companies with accelerated development and exploration programs and noted they should have a "significant impact" on the company's cash flow and returns.
Commenting in a company statement, Range CEO Rory Scott Russell said:
"Range is fully committed to growing its business in Trinidad and we are therefore delighted with the ratification of these new positive fiscal incentives. Operating in a favourable economic environment will bring significant benefits to the Company as we continue to increase production and unlock value from our core development assets in Trinidad."
Meanwhile, fellow junior explorer Leni Gas and Oil announced Tuesday that the third of its Goudron development wells onshore Trinidad, GY-666, successfully spud Monday and is now drilling ahead. Leni is near the start of a 30-well drilling program designed to test the Goudron, Gros Morne and Lower Cruse sandstones.
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