Posted by Malcolm Graham-Wood - Malcy's Blog
A quarterly report from Range but so much has been released lately that there is little new news in it. However the production in the period was 731 b/d up another 16% on the previous quarter due to increased water storage facilities at Beach Marcelle and 57 workovers. The Trinidad operations had positive operating cash flow during the quarter of $0.8m equivalent to $12 per barrel of production. In addition the oilfield services business was awarded a new contract by Shell.
Target production in Trinidad is 800 b/d in this quarter and 1,000 b/d by the end of the year. In Indonesia, with two offices established and a management team in place, preparations to commence field operations are underway and first production is targeted in mid 2018.
With cash of $9.5m and a fully funded cured work programme the company's financial position is strong and revenues should also be increased by new clients at the oilfield services side. Range is now looking more strongly positioned than for a long time.
Writing these SDX press releases must be a doddle at the moment, for each well they drill whether it be in Morocco or Egypt seems to come in. Today the company announces an oil discovery at the Rabul-4 well in the West Gharib Concession in Egypt. The well found 43′ of net heavy oil pay across the Yusr and Bakr formations with an average porosity of 16% and will be further evaluated before being completed as a producer and connected to the facility at Meseda. Right now the rig moves to the Mesada field which will hopefully yield up more production for the low cost, high margin production in country.
Jersey Oil & Gas
I had a sneaking suspicion that Statoil and the ‘co-venturers' were more than a little excited about the prospects on the rest of the P2170 licence and they have now confirmed that by announcing that they are to pre-fund a 3D seismic survey on that licence and certain offset acreage. Statoil, on behalf of the co-venturers will have input into the whole process of PGS' work which will advance interpretation of the Verbier discovery and take a good look at the other exploration opportunities within the licence area.
With final data due in late Q1 2019 this will facilitate integration of the hopefully successful Verbier appraisal well and be important for the strategic planning of any future development phase. JOG will finance their share from existing cash reserves and total caped for 2018 is likely to be at the top of the previously announced range of £9-11m.
JOG have participated modestly in the recent sector rally but are still woefully undervalued. The very fact that a super-major such as Statoil is prepared to show such a resounding demonstration of commitment to this licence should be taken note of in the highest places…..
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