17th Jun 2014 11:48
LONDON (Alliance News) - Range Resources Ltd Tuesday said the newly proposed budget incentives in Trinidad and Tobago for oil and gas companies is expected to have a significant positive impact on the company's cash flow and returns from its ongoing production growth.
In a statement Tuesday, Range Resources confirmed that the government of Trinidad and Tobago approved the budget incentives for oil and gas companies, aimed at ensuring that activity levels are increased and that the nation remains internationally competitive.
The newly proposed budget incentives, which especially reward companies with accelerated development and exploration programmes such as those of Range Resources, are expected to significantly boost the company's cash flows and returns, Range Resources said.
The new budget incentives came into effect from January 1, 2014.
"Operating in a favourable economic environment will bring significant benefits to the company as we continue to increase production and unlock value from our core development assets in Trinidad," said Chief Executive Rory Scott Russell in a statement, stating that the company was committed to growing its Trinidad and Tobago business.
Earlier this week, Range Resources said its average Trinidad production has increased by 18% to an average of 630 barrels of oil per day, from the 533 barrels of oil per day it reported back in April. It said the production increase was primarily due to excellent results at its QU 452 well in the South Quarry field, which it said is producing at a stabilised rate of 70 barrels of oil per day of very light 470 API oil.
In a separate statement Tuesday, Range Resources said Citation Resources Ltd released a trading update on the Atzam #5 well in Guatemala, saying that the electric log analysis by Schlumberger has confirmed the significant commercial potential of the Atzam #5 well.
It said the log evaluation shows potential net pay in excess of 200 feet across all carbonate zones in the well, with multiple zones demonstrating high gas saturations and porosity. It also said that the Atzam #5 log data confirms the well has very similar reservoir characteristics to the Atzam #4 well.
Range Resources has a direct and indirect 24% interest in the Guatemalan Project.
Shares in Range Resources were down 2.1% at 1.66 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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