LONDON (Alliance News) - Range Resources Ltd Thursday said production rose quarter on quarter from its operations in Trinidad, but said it is still awaiting to confirm figures from its operations in Guatemala and suggested that the disposal of its drilling subsidiary may be delayed.
The oil and gas company focused on Trinidad said net production in the first quarter of 2015 averaged 577 barrels of oil per day representing a 6% rise quarter on quarter from 524 barrels per day. Range said production from its assets in Guatemala have not been included as the company is still awaiting production figures from the operator of the license.
Range drilled three new development wells in the South Quarry field in the period, with one of the wells already brought into production with the other two wells currently being completed. It also brought three new development wells into production on the Morne Diablo field. Both of the fields are in Trinidad.
The company received regulatory approvals in the first quarter to conduct electromagnetic surveying in the Morne Diablo and South Quarry fields, which will commence immediately to identify oil reservoirs and help to reduce exploration and development risks.
Preparation work on the drilling of the Canari North exploration well made "good progress" in the quarter. The well is the first shallow onshore well planned on the Guayaguayare PSC licences in Trinidad, and road and location building is underway in preparation for the well to be drilled in the second quarter, it said.
The company's disposal of Range Resources Drilling Services Ltd is set to be completed before the end of April 2015, suggesting that the company may miss its target. The drilling company will continue to provide full oilfield operations services to Range in Trinidad.
Range said the completion date has been extended until May 14 to complete the USD60 million funding with Core Capital to allow more time for regulatory and government approvals. Once the proceeds from the Core Capital funding have been received, the company will seek approval from shareholders to resume trading of the company's shares.
Capital expenditure in the first quarter amounted to USD5.8 million, which is down from USD7.0 million in the fourth quarter of 2014 as a result of lower expenditure on exploration and production activities.
At the end of March, Range Resources had a cash balance of USD1.7 million, which is largely unchanged from the end of December.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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