The Company is pleased to provide an update on its waterflood projects in Trinidad with the following highlights:
The Company is making significant progress with implementing the full scheme on its waterflood projects; Waterflooding is estimated to increase the total recovery factor to over 30% over the next 8 years; The majority of the Company's forecast Trinidad production of 2,500 bopd by the end of 2017 is expected to be achieved from the waterflood projects; The environmental approvals for use of the additional water and construction of the new water pipeline on the Morne Diablo project have been granted; The Company applied for approvals to conduct injectivity testing on the additional waterflood project in the South Quarry block, planned for early next year; and A total capex budget US$17 million for waterflood projects for 2016 is fully funded by purchase order 2 of US$50 million with LandOcean with credit terms of 720 days.
Following commencement of the initial water injection on two waterflood projects, Beach Marcelle and Morne Diablo, the Company has been making significant progress with implementing the full waterflood schemes. Approximately 20% of the original oil in place (OIIP) on the two projects has been recovered by primary depletion. Waterflooding is estimated to recover an extra 10% of OIIP, therefore increasing the total recovery factor to over 30% over the next 8 years.
The majority of the Company's Trinidad production forecast of 2,500 bopd by the end of 2017 is expected to be achieved from the waterflood scheme. Range believes that waterflood is a more cost efficient way to grow its production compared to conventional drilling, which is crucial in the current lower oil price environment.
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