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Range Resources shares lower following illegal drilling incident at Perlak field

A new well being drilled by local residents caused a blowout and fire, resulting in multiple fatalities and injuries

oil and gas operations
Range has an indirect, non-operated interest in the Perlak field

Range Resources Ltd (LON:RRL) shares were on the back foot in Thursday’s early deals, down 4%, after an incident caused by illegal third-party drilling at the Perlak oil field, in Indonesia.

The company revealed in a statement on Wednesday evening that a new well being drilled by local residents had caused a blowout and fire, resulting in multiple fatalities and injuries.

A full investigation will be undertaken by the appropriate authorities, according to Range, which also said that the incident highlights the risks associated with illegal drilling.

Range has an indirect, non-operated 23% interest in the Perlak field, and it confirmed that neither the company nor the field’s operator had any involvement with operations at the affected well.

READ: Range Resources increases production for third quarter running

“The operator was intending to commence well reopening work during the current quarter however this was still pending final approvals and as yet, the operator has not undertaken any on-site operational activity at the field,” Range said.

It also noted that the planned well workover activity was due to take place around 5 kilometres from the incident, though, at present it cannot definitively confirm whether the planned operations will be affected by the incident.

“Range is deeply saddened by the incident and expresses condolences to the families of those who have been affected by this tragic incident,” the company said.

It added: “Range and the operator are fully cooperating with Pertamina on this matter, and will continue to provide further updates to the shareholders as appropriate.”

Quick facts: Range Resources

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AIM:RRL
Market: AIM
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