Post by JimmyRobby85 on Feb 3, 2014 12:51:10 GMT
rangeresources.com.au/framework/documents/displaydocument.asp?doc=1173
Quarterly update
Range’s quarterly report for the period ended December 2013 confirms that, with the appointment of a new
executive management team, the company will expand its core focus on its portfolio of Trinidad assets.
• Total Trinidad oil production in the three months ended December 2013 was 594 bopd, down from 636 bopd in
the previous quarter as a consequence of no new drilling activity over the period. However, the company
undertook a rig maintenance programme in Q4 and now Rigs 2 and 5 are online and drilling QU 452 and QU
148 to respective target depths of 1,800 feet and 700 feet.
• Rig 6 is currently being prepared for activities on the Beach Marcelle field and Rig 1 is also undergoing
maintenance with planned completion in Q1. Range now has CEC approval to drill 40 wells, 8 deepenings and
the commencement of a waterflood project on Beach Marcelle. This milestone also allows for final project
plans to be submitted to the regulatory authorities for final approval.
• Range formally executed the farm-in agreement with Niko Resources Ltd. regarding the Guayaguayare Block
in Trinidad, subject to final regulatory approval. Range will earn a 50% share of Niko’s existing interests in
return for drilling two onshore exploration wells. Range will also drill one offshore well (to be drilled from the
shore) and one appraisal well contingent to exploration success, sharing costs with Niko on a 50/50 basis.
• As part of Range’s move to operational focus and expansion in Trinidad, the company has appointed Mr Rory
Scott Russell as new CEO in addition to two new Non‐Executive Directors, Mr Graham Lyon and Dr Christian
Bukovics. Mr Pete Landau remains with Range in a Non-Executive Director capacity.
• To reflect this sharper focus on Trinidad, we have reappraised our short term valuation for Range and reduced
our target price from 10p to 6p. This reflects a slower than expected increase to peak production on the core
Morne Diablo field, delays in drilling the Herrera formation in Trinidad and further discounting of the group’s
Georgian and Colombian assets which we believe to be non-core to the company.
Range is sharpening its strategic focus. The proposed merger with International Petroleum will not be
proceeding and the company is looking to farm down its interests in Georgia and Colombia as well as
complete the sale of its Texas assets. With Trinidad representing a raft of opportunities, we are confident that
the new management will consolidate Range’s activities in this exciting region.
Quarterly update
Range’s quarterly report for the period ended December 2013 confirms that, with the appointment of a new
executive management team, the company will expand its core focus on its portfolio of Trinidad assets.
• Total Trinidad oil production in the three months ended December 2013 was 594 bopd, down from 636 bopd in
the previous quarter as a consequence of no new drilling activity over the period. However, the company
undertook a rig maintenance programme in Q4 and now Rigs 2 and 5 are online and drilling QU 452 and QU
148 to respective target depths of 1,800 feet and 700 feet.
• Rig 6 is currently being prepared for activities on the Beach Marcelle field and Rig 1 is also undergoing
maintenance with planned completion in Q1. Range now has CEC approval to drill 40 wells, 8 deepenings and
the commencement of a waterflood project on Beach Marcelle. This milestone also allows for final project
plans to be submitted to the regulatory authorities for final approval.
• Range formally executed the farm-in agreement with Niko Resources Ltd. regarding the Guayaguayare Block
in Trinidad, subject to final regulatory approval. Range will earn a 50% share of Niko’s existing interests in
return for drilling two onshore exploration wells. Range will also drill one offshore well (to be drilled from the
shore) and one appraisal well contingent to exploration success, sharing costs with Niko on a 50/50 basis.
• As part of Range’s move to operational focus and expansion in Trinidad, the company has appointed Mr Rory
Scott Russell as new CEO in addition to two new Non‐Executive Directors, Mr Graham Lyon and Dr Christian
Bukovics. Mr Pete Landau remains with Range in a Non-Executive Director capacity.
• To reflect this sharper focus on Trinidad, we have reappraised our short term valuation for Range and reduced
our target price from 10p to 6p. This reflects a slower than expected increase to peak production on the core
Morne Diablo field, delays in drilling the Herrera formation in Trinidad and further discounting of the group’s
Georgian and Colombian assets which we believe to be non-core to the company.
Range is sharpening its strategic focus. The proposed merger with International Petroleum will not be
proceeding and the company is looking to farm down its interests in Georgia and Colombia as well as
complete the sale of its Texas assets. With Trinidad representing a raft of opportunities, we are confident that
the new management will consolidate Range’s activities in this exciting region.
