Quarterly Activities Report For the Period Ended 30 June 2015
Highlights
· Average oil production of 602 bopd in Trinidad increased by 8% from the previous quarter;
· Preparation work continued with good progress for the drilling of the Canari North exploration well, which is the first shallow onshore well planned on the Guayaguayare PSC licences;
· Range signed an amendment agreement allowing the Company to double its working interest in the Guayaguayare PSCs with any consideration payable being contingent upon a commercial discovery and subsequent production, subject to final government approvals;
· Exploration work programme and budget for 2015 on the St Mary's block has been finalised and is planned to commence in the second half of the year;
· The sale of Range's drilling business to LandOcean completed. LandOcean will add four new drilling rigs to the fleet this year. Manufacturing of all four rigs has been completed. The largest rig will arrive in Trinidad in mid-August, and the other three rigs will arrive in Trinidad in September;
· As a result of the driling business sale and the implementation of other cost reduction measures, the Company has positive operating cashflows across the Group at current levels of production;
· Equity funding package of approximately US$30 million with Sibo signed at a premium to the share price, with final completion subject to shareholder approval at the EGM on 28 August 2015;
· Supplier financing agreed, whereby LandOcean will provide extended credit terms of 12 months on drilling related invoices; and
· In line with the Company's stated strategy of non-core asset rationalisation, Range completed its withdrawal from Puntland and the disposal of its equity holding in Citation Resources Limited.
Production overview
The Company's oil and gas production for the period in Trinidad is as follows:
· 54,770 bbls (average of 602 bopd) net to Range, which is an 8% increase from 557 bopd in the previous quarter. The Company is cashflow positive at current levels of production.
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