Range Resources Share News (RRL)

LONDON (Alliance News) - Range Resources Ltd on Thursday reported a fall in oil production in the first quarter of its current financial year and said it made changes in its Beach Marcelle field, Trinidad, modernisation plan.

The oil & gas company said average production in Trinidad totalled 594 barrels of oil per day during the three months to the end of September, down 10% quarter-on-quarter.

The result was hurt by a three-day strike action by employees, as well as electrical outages caused by adverse weather conditions in Trinidad.

During the quarter, production from the South East area of Beach Marcelle field continued at an average rate of 130 barrels of oil daily.

The company said it has completed repairs of the existing pumps to allow stabilised water injection rates of up to 1,500 barrels of water per day, which are the maximum rates currently available.

Range Resources said it initiated an expansion plan at Beach Marcelle field with the objective of increasing future production. The current scheme comprises four producer and four injector wells.

The company intends to increase the area within the South East block being subjected to waterflooding by incorporating up to 15 producers and 10 injector wells into the scheme, subject to relevant government approvals.

At the end of September, Range Resources started a modernisation at the Beach Marcelle field, but experienced delays in the upgrade programme due to the poor internal operational execution.

As a result, the company conducted an urgent review of the programme and revised the scope of work. The changes from the previous plan include the addition of one further settling tank instead of a transfer station, and the addition of a new 1000-barrel storage tank instead of an upgrade to existing tanks.

"We are clearly disappointed and frustrated with the delay in infrastructure upgrade programme and the knock-on effect it is having on our drilling programme and production in Trinidad," said Chief Executive Yan Liu.

"We continue to see significant value in the Trinidad asset base and are determined to unlock its value in the years ahead as production growth is delivered," added Yan Liu.

Range Resources shares were trading 9.1% lower on Thursday at 0.05 pence each.