Range Resources Limited (RRS) is pleased to announce the formation of a partnership with Leni Gas & Oil plc to jointly develop their interests in the Eastern Fields Area onshore southern Trinidad, including the Goudron and Beach Marcelle fields. Range will acquire a 30% interest in Goudron E&P Limited in return for contributing US$4 million at completion. For a further contribution of US$4 million during the first 12 months following completion, Range will increase their holding in GEPL to 50%. LGO will operate the Goudron field during the initial work-over phase, but subject to Range exercising its option to acquire a total of 50% in GEPL, Range will become operator during the infill drilling and water flood phases. Range will obtain an accelerated return through 75% of the revenue interest until their initial investment is recovered. LGO will have the option to acquire a 15% interest in the Beach Marcelle waterflood project by contributing 22.5% towards the development costs (i.e. paying a 50% promote), up to US$7 million, towards the development costs. Range and LGO will work collaboratively to optimise and extend their joint interests in the Eastern Fields Area in Trinidad.
Range’s Executive Director, Peter Landau commented: “This exciting agreement with LGO further enhances our position in Trinidad and gives us additional access to reserves and production growth, especially in the short-term whilst the Beach Marcelle water-flood project is ramping up to full capacity during 2013. The opportunity is of particular importance to Range as it is in the final stages of choosing an appropriate debt financing facility to develop the major aspects of our Trinidad operations for the next 18-24 months. The Goudron Field has enormous potential for increased production and reserves and by collaborating closely with LGO we anticipate additional benefits and synergies moving forward.”