Home' Trinidad and Tobago Guardian : October 10th 2013 Contents BG10 | ENERGY
BUSINESS GUARDIAN www.guardian.co.tt OCTOBER 2013 • WEEK TWO
Range Resources Ltd pared losses by 35 per
cent, the company said in its latest annual
report for the period ended June 30.
The Australian company s net loss after tax
was US$20.304 million in 2013, down from
US$31.095 million in 2012.
In its annual financial report dated Sep-
tember 27, the company said that its revenue
increased by 9 per cent; its Trinidad revenue
increased by 18 per cent; its gross profit
increased by 516 per cent to reach US$5.4 mil-
lion, up from a gross loss of US$1.3 million
the previous year.
Range said its group oil/liquids production
increased by 27 percent to 286,000 barrels;
its Trinidad oil production increased by 35 per
cent to 275,000 barrels; and its operating
expenses reduced by 19 per cent.
Range said its loss before interest/ tax/depre-
ciation/amortisation reduced by 74 per cent.
The company said "significant changes in
the nature of its principal activity occurred
during the financial year."
It identified these changes as:
• Acquisition of a 19.9 per cent strategic
stake in Citation Resources Limited who hold
a farm in right to acquire a 70 per cent interest
in Latin American Resources Ltd, which holds
an 80-100 per cent interest in two oil and gas
development and exploration blocks in
Guatemala and is operator of the blocks.
• The company extended its existing farm
out agreements for the Morne Diablo and
South Quarry licenses in Trinidad up to
December 31, 2021, with the minimum work
commitments for each license well within the
company s current development plans, and
included reductions in the enhanced royalty
rate resulting in significant net back before
In its "review of operations" Range said it
saw a 29 per cent increase in Proved, Probable
and Possible (3P) net attributable reserves
across the company s three Trinidad onshore
The company said it continued with its
Lower Forest development program on the
Morne Diablo license during the year, reaching
peak production in excess of 1,000 barrels of
oil per day (bopd) during Q3 2012 which was
a 120 per cent increase in production since
In Morne Diablo, during the year, Range
said it had presented its proposed waterflood
programme to the Ministry of Energy and
Energy Affairs of T&T and state-owned
Petrotrin. Following written approvals from
Petrotrin, the company said it will immediately
commence field development in line with the
With 75 per cent or 12.8 million barrels
(MMbbls) of Range s 1P proved undeveloped
reserves belonging to the Beach Marcelle water-
flood project, Range said its focus remains on
expediting the current simulation phase in
parallel with moving a rig to site to begin well
integrity and workover operations.
Range s waterflood programme in the Beach
Marcelle field builds upon three previously
successful, but prematurely halted, waterflood
programmes performed by Texaco in the 1950s.
With modern reservoir and waterflood sim-
ulation software available, Range expects to
sweep the remaining proven reserves a lot
more efficiently than the three original water-
The programme will also be targeting addi-
tional fault blocks within the Beach Marcelle
license, not yet previously waterflooded, yet
comprising a portion of the 12.8 MMbbls of
1P proved undeveloped reserves.
Range said its new technical team has looked
at the data and has identified additional recov-
erable reserves, which will be incorporated
into Range s existing reserves report after full
Range pares losses by 35%
Insufficient investment in technology is the
main reason for Mexico s declining oil pro-
duction, an executive of its state oil company
said in Houston Tuesday.
Mexico s national oil company, Petróleos
Mexicanos, or Pemex, relies on the federal
government for its annual budget, limiting
the company s ability to invest in technology
for new exploration, said José Antonio Escalera,
deputy director of exploration for Pemex.
He spoke with FuelFix after delivering a
luncheon keynote address at the Society of
Exploration Geophysicists International Expo-
sition and 83rd annual meeting.
"Mexico has a huge potential," Escalera said.
"We need technology, we need the develop-
ment of personnel skills --- and budget. If
Pemex gets the budget to access the technology
and skilled people, the future is very good."
Escalera is one of many speakers sharing
their geophysical and business expertise at
the annual geophysicists gathering, which
runs through Friday at the George Brown Con-
vention Center. Organizers expect more than
10,000 scientists, seismic computer program-
mers, data experts and others to visit its many
exhibition booths and technical discussions.
Pemex is the focus of a politically charged
proposed change in Mexico s constitution that
would expand international participation in
the profits and risks of the state-owned
Advocates of the proposals introduced by
Mexican president Enrique Peña Nieto say
that Pemex needs investment and expertise
from international companies to boost oil pro-
Opponents fear foreign incursion into the
resource that has been a source of pride and
money since a previous Mexican president
nationalised the oil industry decades ago.
Escalera said that some of the plays in the
southern Gulf of Mexico with the most poten-
tial are also the most complex, and that they
differ from formations in US Gulf waters.
Pemex advantage is its experience in this
geology, Escalera said, but it needs better
access to the latest seismic and processing
Since 2004, Mexico s overall crude output
has dropped 23 per cent, and production in
its once-muscular Cantarell field in the Bay
of Campeche has fallen 75 per cent, to less
than 500,000 barrels a day. (Latin Petroleum)
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