News: Range Resources production rates rise in May; drill plans finalised

Range Resources (ASX:RRS; AIM:RRL) told investors that production rates in Trinidad have increased to 650 barrels per day this month, compared to 617 bopd last month.

The company added that it has now finalised the work programme for the remainder of this year, and it plans to drill thirteen new wells with a further nine wells potentially following later (in a subsequent 2015/16 programme).

It will be a mix of development and exploration drilling, and it is being funded through a twelve month credit facility with drill contractor LandOcean. The first three planned wells have been granted all necessary approvals and preparations to start drilling are currently underway.

Range said a full year production forecast will be provided by the company later in the second quarter.

In the quarter to date, Range has tested the QU 454ST development well, on the South Quarry field, which encountered potential oil bearing sands in three zones.  It has brought into production the QU 455 development well, also at South Quarry, and the well is now earmarked for optimisation work in the near-term.

A third development well at South Quarry is currently awaiting perforation, subject to government approval.

Range is also preparing to conduct an electromagnetic survey designed to image possible oil reservoirs, no deeper than 1,000 feet, and this technique is expected to reduce exploration and development risk at a relatively low cost.

As the company awaits the closing of a proposed US$50mln trade financing package its shares remain suspended on AIM.