Range Resources Updates on Trinidad Operations, Reserves
Australia's exploration and production company Range Resources Limited provided Monday an operations update on its upstream asset in Trinidad.
Trinidad Operations Update
Range is pleased to provide an update on its Trinidad operations with the following highlights:
- Operations continue without any significant Health, Safety, Security and the Environment (HSSE) incidents
- Production has increased by 18 percent from the previously reported 533 barrels of oil per day (bopd) (see announcement April 22) to 630 bopd
- The increase in production is primarily due to excellent results at the South Quarry QU 452 development well. The well is producing at a stabilized rate of 70 bopd of very light 470 API oil on a 0.15625 inch choke
- The well was drilled to a depth of 1,945 feet, and a 17 feet section perforated between 1,702-1,730 feet
- QU 452 is the first development well to be drilled in the South Quarry license since 2007. This successful outstep development well confirms the extension of the shallow producing trend and is expected to result in additional development drilling targets and an increase to the Company’s proved reserves (additional to the increase in proved reserves mentioned below)
- Four of the fleet of six drilling rigs are fully operational:
- Rigs 1 and 5 are engaged in development work in the Morne Diablo license
- Rig 6 is engaged in workover operations also at Morne Diablo
- Given encouraging results from South Quarry QU 452 well, the Company is currently evaluating the possibility of moving rig 8 to South Quarry license to drill additional development targets and expedite the drilling program
- The remaining rigs 2 & 7 are undergoing maintenance
- The Company is finalising the location of the first planned well on the Guayaguayare block with JV Partner Niko Resources, and will update the market on further progress via separate announcements
Increase in Reserves
Range is pleased to announce an independently audited increase in reserves attributed to the Company's onshore Beach Marcelle, Morne Diablo and South Quarry licenses in Trinidad.
The Company’s total 2P reserves have increased by over 9 percent from the previously reported 20.2 million barrels to 22.1 million barrels. These reserve increases are a result of the Company's ongoing development drilling program and consequent update to development schemes in Trinidad during the period. During the period the Company produced 1.2 million barrels of oil from its three fields.
The updated independent reserves report was completed by Forrest A. Garb & Associates, Inc. (FGA) with the reserve volumetrics used in the report effective Jan. 1 and prepared in accordance with SEC Regulation S‐X and with the guidelines of the Society of Petroleum Engineers.
The following table set outs the increase in the Company's net reserves from FGA Report effective Oct. 1, 2012 to the latest report effective Jan. 1.
Total Net Reserve Volumes:
- Proved (1P): 17.5 million barrels of oil (Oct. 1, 2012); 19.0 million barrels of oil (Jan. 1, 2014); 8.6 percent increase
- Proved (2P): 20.2 million barrels of oil (Oct. 1, 2012); 22.1 million barrels of oil (Jan. 1, 2014); 9.4 percent increase
- Proved (3P): 25.2 million barrels of oil (Oct. 1, 2012); 28.2 million barrels of oil (Jan. 1, 2014); 11.9 percent increase
Commenting on today’s announcement, Rory Scott Russell, CEO, said:
“The 18 percent production increase is a great result for the company and shows good progress towards meeting our production targets for the year. The QU 452 well in particular demonstrates the untapped potential of our development assets in Trinidad, flowing exceptionally light oil at 70 bopd and opening up a new area for development drilling.
We are also pleased to provide the updated reserve figures for our core producing assets in Trinidad. The increase in these reserves figures is a result of our ongoing drilling, de-risking and development planning work. The increase in reserves more than replaces production since the last report again highlighting the development potential of the acreage.”
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