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Range Resources cash flow positive for first time

Published: 07:32 01 Jun 2015 BST

Range_-_Trinidad_rig
Range does not believe its 1,000 bopd production target will be affected by the incident.

Range Resources (LON:RRL) said production averaged 620 barrels of oil per day (bopd) from its operations Trinidad during May.

This resulted in positive cash flow for the month, and the group told investors that around current oil prices – a WTI price of US$60 per barrel – the operation can be cash flow positive with production rates above 510 barrels per day.

May represents the first period in the company’s history that it has been cash flow positive, Range said. This achievement comes after the sale of Range’s drilling arm.

Range also revealed a problem with its first new well of the current and ongoing drill programme in Trinidad.

The QUN 158 well, at the Morne Diablo field, encountered good oil shows and gas, though an incident occurred whilst the rig was being pulled out of the well.

No damage was caused to either personnel or the rig, however, operations have now been suspended pending further investigations. It is expected that this could last a month.

The rig in question was earmarked for six of the first 13 wells planned for the 2015 drill programme.

Range said it is talking to LandOcean with a view to minimising the impact to the programme.

“Despite being disappointed by the recent incident, Range management believes it further highlights the importance of the four new drilling rigs to be added to the fleet by LandOcean this year, as these new rigs will be crucial to improving capabilities and limiting the downtime of Range's development and exploration operations,” the company said in a statement.

Range expects the first new rig to arrive in July.

Currently Range does not believe the previously announced 1,000 barrel per day target will be affected by the incident.

 

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