Range Resources
Blogs at the moment by iPad as I am travelling but whilst on the move I noticed with interest an operational update on Trinidad operations from Range Resources. The most striking is the average net oil production for January of 777 b/d which is up 23% up on the last quarter of 2017. But this is likely to be just the start as the work programme for 2018 is very extensive.
This will include integration of the oilfield business and securing third party contracts and completing work to increase the water injection rate at the SE waterflood project to a rate of at least 1,500 barrels of water a day. In addition the company intends to drill a minimum of two new development wells at the Beach Marcelle and Morne Diablo fields and up to 30 heavy workovers whilst obtaining approvals for the next waterflood projects.
It is Range’s intention to achieve continued production growth ‘mainly through the waterflood programme which accounts for the majority of our reserves’. In addition the two waterflood projects brought on to date make Range see significant potential in expanding the programme to other areas of their fields.
It is also worth noting that the company has appointed Lubing Liu as COO and country General Manager as he has extensive international experience in Waterflood projects and shows the determination of the senior management to address the key areas for longer term.
Finally it must not be forgotten that with the acquisition of RRDSL last year the intention is to focus on securing third party work in order to bring in additional revenues. So far in addition to doing in-house work, RRDSL is currently providing oilfield services to one other operator in Trinidad which it hopes to expand.
I am visiting Trinidad shortly and hope to visit all the assets and meet with all the key local management so will report back in a couple of weeks but they do seem to be getting to grips with the situation so patient investors may eventually be rewarded.
RRS Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
