Range Resources: Trinidad wells have'exceeded management's expectations'

AIM-listed oil and gas producer Range Resources has published an update on its Trinidad operations and Texas divesture.

To date, the company reported that it had drilled 21 wells as part of its ongoing development of the Morne Diablo licence. The majority of the wells are targeting the Lower Forest formation and three wells have been completed in the Upper Cruse formation.

In addition, the group reported that four wells are currently being drilled or about to be drilled, including the MD248 well targeting the deeper Lower Cruse and the QUN 135 well targeting the Middle Cruse.

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Additional drilling crews are being recruited and trained to expedite the addition of Range's remaining two drilling rigs, with all six rigs expected to be active within the first quarter of 2013.

A company statement reported: "Range is pleased with the development programme conducted during 2012 and is increasingly enthusiastic about its prospects in Trinidad as refurbishments and upgrades take effect with all six rigs operational. Average production from the wells drilled to date has exceeded management's expectations and contributed to increasing the Company's reserve base."

In Texas, the company reported that it is entering the final phase of negotiations regarding the sale of its North Chapman Ranch and East Texas Cotton Valley assets.

Range is negotiating an agreement for a cash or royalty combination transaction in line with the previously announced price range of between $20m and $40m expected to be completed in January 2013.

Range Resources' share price was down 4.08% to 3.76p at 10:31 on Tuesday morning.

MF