More good news from Range this morning, one cannot dispute that the management are continuing to make deals that, should all go according to plan, and the guidance target of 2,500 b/d by the end of 2017 is achieved, then returns should be higher. Today they have announced that they have agreed with Petrotrin that they will reduce overriding royalty rates on the Morne Diablo, Beach Marcelle and South Quarry fields which will mean that the revised ORR’s will apply when the WTI price is below $50. At current production levels the impact will be minimal but will progressively increase at higher production levels with the revenue benefit estimated to be 7% at 2,500 bopd and the same oil price. The company say that this is ‘a welcome incentive introduced by Petrotrin at a time of sustained lower commodity prices’.
RRS Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
