I believe OPEC does, of which Saudi is very much a driving force. They see the increasing possibility of America being oil and gas independent as being a long term threat to the Middle East and have set about derailing that. I think you have it the wrong way around, America is not dictating this fall in the price of oil, OPEC is.
Do you really think, the Saudi royal family has a power to control Oil price ?! It's the long term partner uncle Sam who decide. I can't see any change coming. the jump this morning is just a preliminary reaction to the news.
Although not unexpected as he has been ill for some time, Saudi Arabia's King Abdullah (90) died yesterday and with these events comes change. He was very pro west and the US in particular, doing much to modernise Saudi Arabia and fighting against extremism. Let's see what his successor, half brother, Prince Salman (79) brings to Middle Eastern politics. It isn't just economic decisions that can affect the price of oil, sometimes political ones can too.
Strategic partnership with Land Ocean Range told the LSE it is making “significant progress on the proposed waterflood programmes in Trinidad with its strategic partner LandOcean Energy Services Co.” The company said it “has entered into the second purchase order, for the provision of technical services by LandOcean to implement waterflooding plans in Trinidad, including reservoir geology, reservoir engineering, drilling engineering, production engineering, surface facilities engineering and economic evaluation. Subsequently, the senior management of Range and LandOcean have held a series of workshops, finalising proposed plans for extended waterflooding of Range’s Trinidad licences.”
Investors were told: “LandOcean has recently completed an extended waterflooding study on the South Quarry and Beach Marcelle licences. In total five prospective areas were identified and evaluated both technically and economically between the licences. Blocks identified are C, NE, and SE blocks in Beach Marcelle; and Ⅱand blocks in South Quarry.
“Based on several geology-reservoir engineering studies completed by LandOcean, two waterflooding plans have been designed, with Plan 1 using existing wells for injection, whilst Plan 2 involving a combination of new and existing wells. The choice of the preferred plan will be made after completion of an onsite well condition survey, anticipated to take place in Q1 (the first quarter of) 2015.” The next key steps in the programme will be to finalise preferred plan for waterflooding and commence surface studies, which will include well integrity surveys and sourcing injection water, the company said.
The proposed Beach Marcelle waterflood project has received a certificate of environmental clearance from the Environmental Management Authority, Range said. Regulatory approvals are currently pending review.
The company said it has received “all approvals to proceed with the Morne Diablo waterflood expansion project. The company had previously completed a successful pilot waterflood scheme, and can now proceed to expand this project to the remaining shallow wells. The waterflood will be conducted in a phased manner with the conversion of the downdip producers to water injection wells which is expected to commence in Q1 2015.”
Onshore T&T explorer, London-listed Range Resources Limited expects to pump 3,000 barrels of crude oil per day from its Beach Marcelle acreage in deep south Trinidad, the company announced in an update on the London Stock Exchange (LSE).
Range also told investors it has secured funding for Beach Marcelle and other waterflood projects “through (a) US$50 million credit facility with Sinosure.” State-owned Sinosure is also known as the China Export and Credit Insurance Corporation.
Range also announced Tuesday that with LandOcean, it is “finalising proposed plans for extended waterflooding of its Trinidad licences, with subsurface studies successfully completed.” The next key step in the waterflood programme will be commencement of surface studies which will include well integrity surveys and sourcing injection water, the company said. “Forecasts indicate oil production could exceed 3,000 bopd for the Beach Marcelle waterflood project,” Range said. “The company has received all environmental and government approvals to proceed with the Morne Diablo waterflood expansion project.”
Dr Wang Guohui, a deputy general manager of LandOcean with more than 25 years of experience in oilfield production analysis and management, has been appointed as LandOcean's head of Trinidad project to complement Range’s Trinidad team, the company also told investors. Wang was previously head of strategic production planning department at the research centre of the China National Petroleum Corporation (CNPC), the state-owned fuel-production corporation and the largest integrated oil and gas company in China, where he focused on production planning study for CNPC.
Following a review of its business plan, Range’s board of directors has determined that the drilling business does not fit with the strategy of the exploration and production (E&P) company, and the time and resources will be best spent on efficiently running its upstream assets. “As a result, Range has agreed to sell its drilling services company in Trinidad for total cash consideration of US$7.2 million and these proceeds will be invested primarily into development of our core Trinidad assets,” the company said. “The drilling services company will continue to provide full oilfield operations services to Range in Trinidad, to accelerate Range’s planned development and exploration drilling programmes.”
The guard has changed at Range Resources Ltd, quietly, and just at the start of the new year.
In a presentation by the new management, Range told the London Stock Exchange this morning: "Trinidad onshore is a fundamentally strong business, that has suffered from years of underinvestment."
Range told investors the company has:
- a solid reserve base, certified 1P of 19 mmbo in well-known, easy-to-access reservoirs; - low-risk waterflood projects, combined with extensive low-cost shallow onshore development drilling programme; - well-developed field infrastructure and off-take facilities, capacity in place for drilling programme; - access to funding and strong strategic partnerships; an Integrated Master Services Agreement in place with oilfield services partner LandOcean (of China); - US$60 million equity based financing secured from Core Capital to strengthen Range's balance sheet (subject to shareholder approval); - and a US$50 million credit facility arranged with Sinosure (of China) for Trinidad Beach Marcelle, Morne Diablo and South Quarry waterflood programmes.
Range said it will fully exploit and develop the potential of the Trinidad assets with the US$110 million total financing package.
Range management said: "All Range staff are focused on stabilising and turning around the company; the management is confident that it has all the right elements in place to deliver growth and shareholder value in 2015; (and a) strong operational team with over 20 years experience in Trinidad"
Range Resources is a dual listed (ASX: RRS; AIM; RRL) Trinidad-focused independent E&P company.
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