Range Resources gains on Trinidad oil production update

Range Resources shares jumped six per cent Thursday after the oil and gas company announced it was making progress on the production of six wells in Trinidad. The company said it successfully drilled the QUN 135 well to a planned total depth of 3,500ft following operational delays. Results indicated the group may have penetrated a previously undiscovered reservoir in the Middle Cruse section. The well will be deepened and evaluated to determine which of the multiple oil zones represent the best candidate for initial completion. Progress is also coming along on the QUN139 well in the Lower Forest formation, having encountered about 80ft of quality oil sands to 945ft as drilling goes ahead for a revised target depth of 1,300ft. The Morne Diablo Waterflood licence is currently being simulated and modelled with completion estimated in February. The group's Beach Marcelle programme is set to commence upon receipt of the approvals to deepen six of the existing wells with a target production of 150-300 barrels of oil per day per well."There is no doubt that it has been a challenging few months given theoperational delays experienced in getting certain wells drilled in Trinidad and the softening of the company's share price," said Executive Director Peter Landau. "As we continue to address the supply chain issues that resulted in those delays, it is important to remember the key positives that will continue to underpin Range's performance moving forward in the short to medium term."Range is working toward having all six of its drilling rigs running to increase production and cash flow and resolve the operational delays.RD