Range resources in Trinidad acquisition

LONDON, March 13, 2017 – A binding-heads-of-terms agreement was signed between LandOcean Petroleum and Range Resources on Monday, returning ownership of Range Resources Drilling Services to its parent company.

The asset was originally sold to LandOcean Petroleum in May 2015. The divestiture netted Range Resources USD 4.4 million in capital and USD 1.6 million in drilling services. Since the original purchase, some USD 25 million has been invested into company covering the purchase of four additional rigs and upgrades for existing infrastructure. Today, the company has a total of 12 rigs at its disposal.

Under the terms of the new agreement, Range Resources will pay LandOcean USD 5.5 million between now and 2020.

“The recent oil price recovery is having a favourable impact on drilling activities in the E&P sector globally, and consequently oilfield service providers. The board believes that the acquisition will provide the company with a platform to capitalise on this recovering market,” a spokesman from Range Resources commented.

In other drilling news, LGO energy announced Monday that development well GY-682, the first of the company’s new drilling campaign, had reached depths of 349 metres on March 8. Oil has been confirmed at the asset. Drilled in five days at a cost of USD 500,000, GY-682 is expected to produce around 45 bpd of light sweet crude oil.

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