Range provides the following update on its Trinidad operations with the following highlights:
· The approval to spud the MD 51-2 development well has been granted and the well is expected to spud early next month;
· Workover programme on the existing wells has been reviewed to focus on the most economic wells; and
· The credit terms provided by LandOcean on drilling services and PO1 have been extended by further 12 months, to allow the Company to repay credit from future cashflows once production ramps up.
Range is pleased to advise that it has received the approval from the regulatory bodies in Trinidad to spud the MD 51-2 development well. As previously announced, this will be a directional well to be drilled to a total depth of 3,900 feet to test the Middle and Upper Cruse sands, which were encountered with the MD 250 well. The initial log evaluations on the MD 250 development well identified multiple hydrocarbon bearing zones, with an estimated net pay of over 140 feet.
The well will be drilled from the same drilling pad as the MD 250 well, using a 4,000 metre rig. The wellhead is located approximately 20 feet from the MD 250 well and the drilling company RRDSL is in the process of moving the rig to the well location. The Company expects to spud the well in July and will provide a further update to all shareholders upon spudding. In line with safety requirements, production testing operations of the MD 250 and MD 51-2 wells will be performed only once all drilling operations on the pad area are completed.
This is the second of the six well drilling programme which Range has planned for 2016. The remaining scheduled wells include two development wells in Morne Diablo, one development well in Beach Marcelle, and one exploration well in the Guayaguayare block.
RRDSL's further three new drilling rigs are pending final approvals from the Ministry of Energy and Energy Industries (MEEI). Approvals cannot be granted until all documentation on the rigs, as requested by the MEEI, is provided by RRDSL. RRDSL is working on acquiring the requisite documents for submission to the MEEI. As advised by RRDSL, approvals are expected to be received in Q3 2016.
As part of the Company's ongoing cost management, Range has completed a workover programme review. As a result, the Company has reduced a number of workovers to focus on the most economic wells. Range will keep the workover programme under a regular review and carry on workover operations on the most profitable wells.
Range continues to focus its efforts on the longer term growth from waterflood projects and development drilling. The Company conservatively estimates that the five development wells from the 2016 work programme will add approximately 500 bopd to current production levels by the end of this year. Range reiterates its previous production guidance of 2,500 barrels of oil per day (bopd) by the end of 2017, with the majority
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