Randgold Resources Share News (RRS)

LONDON (Alliance News) - Range Resources Ltd said on Thursday it has agreed a work programme and budget with Indonesia's state-owned oil and gas company for the Perlak field.

Range, which acquired Perlak in October, has since been building a team to work on the site, and said state company Pertamina has approved the work programme and budget.

The programme consists of re-opening up to ten existing, previously producing wells, the workover of two previously producing wells, as well as geological, geophysical, and integrity studies.

The aim is to have Perlak producing oil again by the middle of 2018, and the work programme could add up to 200 barrels of oil per day of gross production.

Range will sell the oil produced to Pertamina. The total forecast expenditure for 2018 is around USD6.0 million gross, with Range funding 60% of operating costs.

Perlak is located in the "mature" hydrocarbon province of North Sumatra, and Range said it is one of the oldest producing fields in the world, having been first discovered in 1899 with main production occurring in the early 1940s.

Chief Executive Yan Liu said: "We are hugely excited to be announcing an accelerated work programme in Indonesia. Following the completion of the initial study work, Range and its partners have developed a plan to target a rapid return to production by undertaking a low risk, focused work programme."

"This is a first step towards unlocking the full potential of this highly prospective asset, which has the potential to deliver significant benefits to our shareholders in the form of increased production, cash flows and new development opportunities."

Shares were up 5.6% on Thursday afternoon at 0.24 pence each.