Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Range Resources extends licences in Trinidad  Join our daily free Newsletter

MENAFN - ProactiveInvestors - Australia - 09/03/2013

No. of Ratings : 0
Add to Mixx!


The company said the extension adds potential to exploit other, deeper targets
(MENAFN - ProactiveInvestors - Australia) Range Resources (LON:RRS, ASX:RRS) said the licence periods for its Morne Diablo and South Quarry assets in Trinidad have been extended by ten years.

The farm out agreements for Morne Diablo and South Quarry now stretch to the end of 2021.

"The process of extending the Morne Diablo and South Quarry contracts is a clear demonstration of the Trinidad authorities and stakeholder's commitment to work with partners such as Range to increase drilling activity and raise production," said Peter Landau, Range's executive director.

The Morne Diablo licence now includes an additional circa 3,000 acres, designated as Block A, to the east of the existing licence area. Block A is an extension to the east of the current Lower Forest development trend where the company is currently drilling.

The company said the extension adds potential to exploit other, deeper targets.

As previously announced, the new farm out agreements (effective from 1 January 2012), will see a reduction in the enhanced royalty currently being paid by the company with the revised terms seeing an improvement in the net back amount received by the company per barrel of oil produced.

The revised royalty rates at production rates of 1,000 barrel of oil per day (bopd) will see net-backs increase to circa US40 a barrel before tax, and circa US50 a barrel before tax at 2,000 bopd, assuming US90 per barrel of oil and operating expenditure at similar levels.

The company also revealed that it has secured a US35mln debt financing facility with Meridian SEZC. The Cayman Islands-based finance company has agreed to purchase US35mln of five-year monetary production payment (MPP) securities from Range Resources.

The MPPs carry a coupon of 12%.

"With the new debt facility in place, we intend to fulfil our part of that commitment [to actively drill and raise production] and now have the additional time, acreage, and capital to achieve those objectives. In addition to the contract extensions with their enhanced economics, Range has initiated third party discussions regarding additional opportunities to expand our operating base outside of the existing contract areas and grow the Trinidad portfolio into a core producing area for the company for decades to come," Landau said.


  MENA News Headlines

Click to Apply



Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help