Range today releases its half-yearly report (unaudited) for the 6 months ending 31 December 2017.
Yan Liu, Range's Chief Executive Officer, commented:
“We are extremely encouraged by the progress in both operational and financial performance demonstrated in the interim results.
We continue to invest in growing the asset base and completed two important acquisitions during the period. Throughout the remainder of this year we look forward to seeing further improvements in key metrics such as operating costs as a result of RRDSL acquisition, and revenue growth from our upstream assets.
We are confident that as we focus on growing the business, we will continue to deliver substantive value and results to our shareholders.”
Highlights for the period include:
- The average production for the period of 605 bopd was 22% higher than comparable prior year;
- Increase in production is mainly attributed to the ongoing waterflood programme, selective development drilling and workovers;
- The Company continued with implementation of the Beach Marcelle waterflood project, which accounts for the vast majority of Range's reserves in Trinidad;
- Production from waterflood continued to increase with approximately 30% attributed to this programme;
- Two development wells successfully drilled and brought into production;
- Over 130 workovers completed; and
- Independent Competent Persons Report (“CPR”) published confirming net 2P reserves of 16 MMstb and net 2C contingent resources of 8 MMstb.
- The Company has been building an experienced operating team, and undertaking initial geological and geophysical studies;
- Upcoming work programme and budget are being finalised; and
- Independent CPR published confirming net 2C contingent resources of 10.9 Bscf and 3.1 MMstb.
- In line with the growth strategy, the Company completed two new acquisitions:
- - 23% indirect interest in an established oilfield in Northern Sumatra, Indonesia;
- - 100% interest in Range Resources Drilling Services Limited (“RRDSL”), an oilfield services provider based in Trinidad with a fleet of modern drilling rigs, workover rigs, and equipment.
- AIM re-admission completed; and
- Group Chief Operating Officer and Trinidad General Manager, Mr Lubing Liu appointed subsequent to the period end.
- Financial performance has materially improved with a 77% reduction in loss before tax to US$8.5 million (prior year: US$37.8 million);
- Revenues increased by 39% to US$5.4 million (prior year: US$3.9 million), principally due to an increase in production;
- Operating expenses decreased by 14% to US$34.5 per barrel (prior year: US$40 per barrel);
- General, administration & other expenses decreased by 40% to US$3.2 million (prior year: US$5.4 million);
- No impairment charge has been recognised for the first time since 2013;
- Cash and other liquid assets at the end of the period of US$10.9 million (prior year: US$20.6 million). The reduction in cash is due to a number of factors including the investment into the new acquisitions and the funding of a drilling programme in Trinidad; and
- Range continues to benefit from the generous credit terms offered by LandOcean Energy Services Co., Ltd across various funding arrangements. The average maturity profile is in excess of two years and none of the credit arrangements have any security, and nor do they have any financial covenants or restrictive controls.
To view the full report please click here.
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