Less Ads, More Data, More Tools Register for FREE

Pin to quick picksSTA.L Regulatory News (STA)

  • There is currently no data for STA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Beach Marcelle Waterflood Commences

31 May 2016 07:00

RNS Number : 6254Z
Range Resources Limited
30 May 2016

Beach Marcelle Waterflood Commences

The Company is pleased to provide an update on its waterflood projects in Trinidad with the following highlights:

Injection on the flagship Beach Marcelle waterflood project has commenced;

Two injector wells are being used to inject water, at an average initial rate of approximately 600 bwpd, which will gradually increase as additional wells and surface facilities are commissioned;

Waterflood injection on the Morne Diablo project is continuing, with water rates increased to the maximum volume of water currently available;

Agreement reached with Petrotrin to access additional water supply for Morne Diablo project with contracts to be signed shortly; and

Waterflood projects will be key contributors to the Company's production growth over the coming years.

Beach Marcelle Waterflood - South East Block

The project implementation on the South East block of Beach Marcelle field has been successfully progressing over the last months. As a result, initial water injection has commenced, on schedule with the previously anticipated timelines.

The waterflood pattern on the block comprises 10 injector and 15 producer wells. The selected wells are undergoing workover operations using two workover rigs, with five wells completed as injectors and four as producers to date.

Two injector wells are currently being used to inject water, at an average initial rate of approximately 600 barrels of water per day ("bwpd"). In line with the planned implementation programme, injection volumes will be low at first, gradually increasing as additional wells and surface facilities are commissioned. Injected water is expected to be available from shallow aquifer wells (water source wells). The selected water source wells are also currently undergoing workover operations.

The first production as a result of waterflooding is anticipated during Q1 2017. The average production over the 8-year period is expected to be approximately 1,600 bopd, with production estimated over the plateau period of three years of 2,000 bopd.

The original oil-in-place in the South East block is estimated by the Company at 37.5 mmbbls, of which 6.2 mmbbls (17%) has been produced by primary depletion. Waterflooding is estimated by the Company to recover another 4.8 mmbbls over the next 8 years.

Morne Diablo Waterflood - Expansion Project

As previously announced, the initial water injection on the project commenced in December 2015.

The waterflood plan involves the use of up to 14 injectors and 14 producers. Four injector wells are currently being used to inject water. The water injection has been increased from 150 bwpd to 250 bwpd, which is the maximum volume of water available at present from Range's production wells.

To get access to additional water source supply, Range has been negotiating with Petrotrin to use produced water from Petrotrin's existing operations, which will increase water injection by 3,000 bwpd. The Company is pleased to advise that the agreement with Petrotrin has been reached and expects to sign the contract shortly.

The Company will be constructing a new water pipeline to connect Morne Diablo field to Petrotrin's water treatment facility.The environmental approvals for use of the additional water and construction of the new water pipeline have been submitted to the regulatory body in Trinidad.

The average production over the 8-year period is expected to be approximately 200 bopd, and is forecast to be achieved when water injection is increased to approximately 3,000 bwpd.

The original oil-in-place in the expansion area is estimated at 6.5 million barrels of oil (mmbbls), of which 1.3 mmbbls (20%) has been produced by primary depletion. Waterflooding is estimated by the Company to recover another 0.6 mmbbls over the next 8 years.

Additional Waterflooding Areas

The Company has identified additional areas around the previously drilled development wells in the South Quarry and Morne Diablo fields, which could be suitable for waterflooding. The Company will continue to evaluate these areas and study the field for waterflooding potential. If deemed economically feasible, Range will proceed with the relevant approvals to implement these projects.

As previously advised, Range and LandOcean are continuing to progress with finalising the terms for the US$50 million trade financing package with Sinosure. Pending completion of the Sinosure facility, LandOcean will provide Range with credit terms of 720 days for all work undertaken as part of purchase order 2 of US$50 million, including the waterflood programme.

Yan Liu, Range's Chief Executive Officer, commented:

"I am extremely pleased with the commencement of injection on our second waterflood project. Beach Marcelle is the largest waterflood project to be implemented in recent times in Trinidad and the team has been working tirelessly to bring it on line. It will be key to our production growth in the coming years, with first production from this project expected at the beginning of next year.

I look forward to working closely and leading our team during this period of unprecedented operational activity and demonstrating the results to all shareholders."

Contact Details

Range Resources Limited

Evgenia Bezruchko (Group Corporate Development Manager)

e. admin@rangeresources.co.uk

t. +44 (0)20 7520 9486

Cantor Fitzgerald Europe (Nominated Advisor and Broker)

David Porter / Sarah Wharry (Corporate Finance)

Richard Redmayne (Corporate Broking)

t. +44 (0)20 7894 7000

This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLLIFLAEEIIVIR
Date   Source Headline
28th May 20128:10 amPRNChange of Director’s Interest Notice
22nd May 201210:49 amPRNCompany Presentation
22nd May 20129:21 amPRNChange of Director's Interest Notices - Appendix 3Y
18th May 20127:50 amPRNLodgement of Open Briefing Puntland
17th May 20121:20 pmPRNPuntland Drilling Update
17th May 20121:07 pmPRNPuntland Update
16th May 20128:55 amPRNTexas and Trinidad Update
14th May 20127:08 amPRNPuntland Update
9th May 20127:29 amPRNGeorgia Update
1st May 20127:15 amPRNQuarterly Activities Report and Appendix 5B
19th Apr 20127:00 amRNSOffer Update
18th Apr 201210:35 amPRNMarket Update
12th Apr 20128:27 amPRNTrinidad Update
12th Apr 20127:44 amPRNPuntland Drilling Update
12th Apr 20127:43 amPRNPuntland Drilling Update
11th Apr 20127:16 amPRNNominated Adviser to Change Name
5th Apr 201212:35 pmRNSCancellation of Admission to AIM
3rd Apr 20127:01 amRNSDirectorate Change
3rd Apr 20127:00 amRNSOffer Update
29th Mar 201211:16 amRNSResult of EGM
26th Mar 20122:18 pmRNSForm 8.3 - Stagecoach Theatre Arts PLC
23rd Mar 201211:27 amRNSForm 8.3 - Stagecoach Theatre Arts
22nd Mar 201210:10 amRNSForm 8.3 - Stagecoach Theatre
20th Mar 20129:29 amPRNPuntland Offshore
16th Mar 20127:58 amPRNHalf Yearly Accounts
13th Mar 20127:00 amRNSForm 8 (OPD) Stagecoach Theatre Arts plc
13th Mar 20127:00 amRNSSupplementary Form (OP) Lifeskills Education
13th Mar 20127:00 amRNSForm 8 (OPD) Lifeskills Education Limited
12th Mar 201212:51 pmRNSRule 2.10 Announcement
12th Mar 201212:07 pmRNSForm 8.3 - Stagecoach Theatre Arts PLC
12th Mar 20127:00 amRNSOffer by Lifeskills Education Limited
9th Mar 20127:47 amPRNNorth Chapman Ranch Update
7th Mar 20122:06 pmPRNPuntland Drilling Update
6th Mar 20127:00 amPRNRange obtains quotation on OTCQX International
28th Feb 20127:00 amRNSHalf Yearly Report
23rd Feb 20127:09 amPRNOperations Update
1st Feb 20128:44 amPRNQuarterly Activities Report for December 2011
31st Jan 201212:47 pmPRNQuarterly Activities and Cashflow Report
27th Jan 20127:00 amPRNTrinidad & Texas Update
25th Jan 201212:34 pmPRNTrinidad - Partnership with Leni Gas & Oil Plc
25th Jan 201212:07 pmPRNTrinidad - Partnership with Leni Gas & Oil Plc
23rd Jan 20127:08 amPRNGeorgia Update â€" Site Construction Underway
17th Jan 20127:00 amPRNSpudding of Historical Puntland Exploration Well
6th Jan 20127:43 amPRNTexas and Corporate Update
30th Dec 20117:17 amPRNTrinidad & Texas Update
23rd Dec 201111:13 amPRNTrinidad & Texas Reserves & Valuation Report
23rd Dec 20117:34 amPRNTexas Update
9th Dec 201112:29 pmPRNOperational Update
6th Dec 20119:07 amPRNCompany Presentation
1st Dec 20117:00 amPRNLetter to Option holders

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.