Range Resources says operational problems hit production

Oil producer Range Resources said Friday operational and supply chain difficulties in Trinidad hindered production over the last three months of 2012.

The group was forced to cut back on drilling operations which hit oil output during the quarter.

"During the quarter, previously announced operational and supply chain difficulties resulted in fewer-than expected wells being drilled by year-end, which subsequently resulted in a decrease in quarter on quarter production," the company stated in an operations update.

However, results from wells drilled in the area, including in the Lower Forest development, have exceeded expectations.

The group completed five wells in the fourth quarter, two of which encountered the southern extremity of the Lower Forest trend.

Range expects production on three wells to kick off in coming weeks following receipt of approval. Remedial work on four wells will also commence.

The company anticipates a marked increase in activity during the first quarter of this year, with 10 to 12 wells set to begin production.

The news comes after Range announced it increased its proved reserves by 29% from a year ago across the company's onshore Trinidad licenses.

Shares rose 1.35% to 3.38p at 9:25 Friday.

RD