opl - report/overview-april

WELL WORTH ANOTHER READ FOR ALL INVESTORS IN Range Res.

http://www.rangeresources.com.au/fileadmin/user_upload/research_Reports/Trinidad_20_4_01.pdf

{Oil prone formations
Most of the oil fields in Trinidad are four-way dip structural rollover anticlines with significant closure to
create multiple entrapment horizons as seen in the graphic below.
Structural cross section of the Morne Diablo field
Source: Range Resources
The Cruse sands
The Pliocene aged Cruse sands (orange layers in picture above) can be segmented into three distinct
members. Primarily, the Middle Cruse formation is widespread in Trinidad and is the main producer in
the region. This horizon is typically located at depths of approximately 3,000 ? 4,000ft.
The Lower Cruse horizon is productive but largely unexplored in Trinidad. Lastly, the Upper Cruse is
also widespread, consisting of well developed sands that offer the prospect of steady production.
The Forest sands
The Pliocene aged Forest sands (pink layers in picture above) represent the shallowest horizons on
Monitors acreage and comprise two main oil producing members. The Lower Forest sands range
from 800 ? 1,000ft deep and the Shallow Forest ranges from 300 ? 500ft. These formations are
ubiquitous in the south west of Trinidad and the shallowest of all the most accessible oil producing
horizons.
In the Beach Marcelle area of Trinidad, the shallow Forest sands equivalent is the Gros Marne
formation where Monitor is considering a water flood project to increase current production rates.

Cruse sands
Forest sands
Herrera formation
The Herrera formation ? significant upside
The deepwater Miocene aged turbidite Herrera Formation (green layers in picture above) is a prolific
producer in Trinidad and represents significant prospective resource upside to Monitor. Production in
this formation is usually found in the northeast to southwest thrusted structure to the east and north of
Monitor?s prospective acreage. The comparatively large Penal field in the Herrera Formation has
produced more than 60mmboe to date from depths of up to 9,000ft.
Producing fields in the Herrera formations in Trinidad produce at rates of 500 - 2,000bopd on blocks
adjacent to Range?s acreage positions.
Reserves attributable to Range
The Morne Diablo field was discovered in 1938 and has had 320 wells drilled on it of which more than
half are currently producing. Total production to date has been 9.5mmbo from depths ranging from
200 feet to 4,800 feet. Current production from the field is approximately 500bopd. Over 220 wells
have been drilled on South Quarry and Beach Marcelle to date and current combined production is
nearly 200bopd.
Range?s forward development plan will comprise replacement, infill and step out wells on the existing
acreage given that the current fields exploit only 5% of the available proven reserve acreage.
Reserve data
With regards to Range?s core assets, reserve data relates to the shallower Forest and Cruse
formations only. Gross P1, P2 reserves are 6.6mmbbls with P3 upside of a further 2.9mmbbls as
estimated by independent consultant Forrest A. Garb & Associates (FGA).
Prospective reserves are significantly higher and relate predominantly to the deeper Herrera
formation. However, to bring them into production would require a significantly larger capital
expenditure programme which is not being considered for the purposes of this report. }