RRS 0.00% 0.1¢ range resources limited

News: Range Resources to complete Core Capital financing by end April

  1. Range Resources (ASX:RRS, LON:RRL) expects to complete its US$60mln financing with Core Capital by the end of April, it said today.

    The money is in addition to a US$50mln credit facility, with the combined sum to be spent on a water-flood and development programme for its assets in Trinidad.

    Range recently sold its drilling operation to new shareholder LandOcean and the pair are finalising the water-flood programme.

    Company forecasts indicate oil production could exceed 3,000 barrels of oil per day (bopd) at the Beach Marcelle water-flood project.

    In the last quarter, average oil production in Trinidad decreased by 7%.

    LandOcean will bring in new equipment and the current rigs, as well as adding at least two further rigs, one shallow and one deep, said house broker Cantor.

    The broker added that significant work has been done on the water-flood projects.

    LandOcean has completed an extended water-flooding study on the South Quarry and Beach Marcelle licences.

    Five prospective areas were identified and evaluated both technically and economically.

    Based on several geology and reservoir engineering studies, two water-flood plans have been designed.

    The next steps are to commence well integrity surveys and source injection water.

    At Morne Diablo, the water-flood will be conducted in a phased manner over first quarter, while plans are being finalised for the first shallow water onshore exploration well on the Guayaguayare licence, where Range want to increase its interest.

    The Georgia assets remain for sale, while work continues on the VMM-7 and VSM-1 blocks in Colombia.


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