News listings
New Ad Position

energy-pedia general news

Trinidad flagTrinidad

South America / GoM >>> Trinidad

Trinidad: Range Resources acquires producing assets in Trinidad

13 Aug 2017

Photo - see caption

Range Resources has entered into a binding sale and purchase agreement (the 'SPA') to acquire certain producing assets from a wholly owned subsidiary of Trinity Exploration and Production for a cash consideration of US$4.55 million. Range will fund the acquisition from the existing cash resources.   

Pursuant to the acquisition, the Company will acquire a significant interest in two offshore producing licences, Brighton Marine ('BM') and Point Ligoure-Guapo Bay-Brighton Marine ('PGB') (collectively the 'West Coast Assets'). Both licences are located offshore West Coast of Trinidad, with a combined current production of approx. 200 bopd. Range will be the operator of both blocks.

Acquisition highlights:

  • Increases the Company's current production in Trinidad by approximately 33% to over 800 bopd;
  • Increases Range's footprint in Trinidad and provides significant operational synergies with the Company's existing operations;
  • Net 2P reserves of 2.6 mmbbls (as reported by Trinity at 31/12/2016);
  • The West Coast Assets are profitable at current production levels and oil prices as a result of recent optimization and cost reduction exercises undertaken by Trinity;
  • Located near to shore in easily-accessible shallow water, with full infrastructure and facilities in place;
  • Significant potential to increase production through low risk workovers of existing wells.  Longer-term opportunities to grow reserves and production through further development and exploration activity;
  • Low per barrel acquisition cost of US$1.75 per 2P barrel;
  • High working interest: 100% for BM and 70% for PGB; and
  • Provides additional options and drill prospects for the RRDSL drilling business which is being acquired by the Company.

Commenting on the acquisition Chairman, Kerry Gu said:

'We are extremely pleased to have agreed a second acquisition of upstream assets this month. Expansion of our existing portfolio of producing assets in Trinidad will not only provide additional production, cashflows, reserves, drill targets and enhanced oil recovery potential, but it is also expected to result in further improvements to the cost structure across our Trinidad business.

We see significant potential within the West Coast Assets to grow production and believe that these assets are highly complementary to our existing portfolio. We look forward to welcoming the skilled West Coast operating team to Range.'

Photo - see caption
Range has acquired the Brighton Marine ('BM') and Point Ligoure-Guapo Bay-Brighton Marine ('PGB') assets from Trinity (Source: Trinity)

Assets overview      

The assets are located in shallow water, offshore West coast Trinidad, a proven hydrocarbon basin with a world-class source rock. The two producing properties cover an aggregate 8,500 hectares2 (prior to a 50% acreage surrender on PGB which is awaiting Ministry approval).

The BM field has been in production since the 1950's with over 60 mmbbls produced to date. The field is operated primarily via 9 unmanned, offshore platforms with all oil handling and sales infrastructure in place onshore. The current PGB licence was awarded to Trinity in 2012 but similarly to BM, the field overall has a long history of production prior to that date from the previous Pt.Ligoure licence.

The current combined production of the West Coast Assets is approx. 200 bopd with last reported 2P reserves of 2.6 mmbbls. Following the acquisition, the Company currently intends to carry out two well workovers on the BM field, which has the potential to increase production by over 100 bopd.

Longer-term production growth could be achieved from continued workovers, infrastructure works, infill drilling and a greenfield development programme. Furthermore, there are potential opportunities from enhanced oil recovery which may be considered in the future to increase production and reserves.  At PGB there is also a heavy oil opportunity which has been previously tested at over 300 bopd of production.

There are further opportunities that comprise exploration prospects from the prolific Forest and Manzanilla reservoirs. Exploration potential in the area has been evidenced by Petrotrin's Jubilee field discovery in 2012, South East of Cluster 6-ALM 22 well, contiguous to the PGB licence area.

Key terms of the SPA

  • Range Resources Trinidad (a wholly owned subsidiary of Range), has entered into a binding SPA to acquire the West Coast Assets from Oilbelt Services Limited (a wholly owned subsidiary of Trinity), for a total cash consideration of US$4.55 million;
  • The total cash consideration will be placed into an escrow account until completion;
  • 12 employees from Trinity who currently operate the West Coast Assets will be transferred to Range; 
  • Completion of the acquisition is conditional (amongst other things) upon a waiver of pre-emption rights by Petrotrin and receipt of all necessary regulatory approvals from Petrotrin and the Ministry of Energy and Energy Industries of Trinidad and Tobago ('MEEI'); and
  • Backstop date for completion is 30 November 2017 (or such other date as mutually agreed by the parties).

Range currently anticipates that completion of the transaction will occur during Q4 2017.

The Company will provide shareholders with an updated corporate presentation during September 2017.

Click here for Trinity Exploration and Production announcement: Sale of West Coast Assets for US$4.55 million

Original article link

Source: Range Resources

Bookmark and Share

A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.

Publicly Available Deals

See all deals...

Subscriber Only Deals

Current deals: 1648
Completed deals: 4641

Company Profiles

Current Company Profiles: 2509

Corporate Activity

Current Corporate Activity articles: 2915

Companies Looking

Current number of articles: 415

Company Sales

Current Company Sales articles:1168


Current Geostudies articles: 516

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...

energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...

energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...


Subscribe to the FREE
energy-pedia Daily Newsletter

KL Publishing
SLR Consulting logo
EP Consult Energies
Union Jack Oil 149
count geophysics
Government of South Australia
RSK Logo 149
Lynx Information Systems
Rose & Assocs 149
Polarcus Logo 149
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans

Tel: +44(0)1727 822675