2015 Trinidad Update. Trinidad & Tobago Energy Conference

Transcription

1 2015 Trinidad Update Trinidad & Tobago Energy Conference

2 Forward Look Statements Certain information in this document is forward-looking and is subject to important risks and uncertainties. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of Range Resources Limited to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory environment, competitive factors in the oil and gas industry and the prevailing economic conditions in Trinidad and Tobago. Range Resources Limited disclaims any intention or obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. 2

3 Range Resources Ltd. Range Resources Limited is an exploration and production company, with a diverse portfolio of oil and gas assets. Range holds a 100% interest in three onshore production licenses in Trinidad Offices in London and Australia Range is a dual listed (ASX: RRS; AIM; RRL) Trinidad-focused independent E&P company c. 75 employees in 3 geographic locations of which 87% are located in Trinidad 3

4 Range Resources Trinidad The assets Solid reserve base, certified 1P of 19 mmbo Low-risk waterflood projects, combined with extensive lowcost shallow development drilling programme. St. Mary s St. E&P Mary s (100%) PSC (100%) Beach IPSC South Quarry FO (100%) Morne Diablo FO (100%) Guayaguayare PSC (50%) 4

5 Incidence rate HSE Commitment Vision Statement Zero Harm hurt and nothing gets harmed - no one gets Committed to maintaining the safest work environment in the industry 6 5 LTIR (Loss Time Incidence Rate) Range Resources vs. *IADC Member Average STOW (Safe To Work) certified for 2 years from Dec-2014 HSSE performance underlies good operational performance as well as being a critical performance measure for the state RRTL IADC * IADC International Association of Drilling Contractors member average for Land drilling operations. 5

6 Committed to Trinidad Trinidad employment population c. 65 employees of which 99% are Trinidad nationals Range supports training and development of young professionals - 63% of the workforce are between the ages of years 31% of the employee population are females who hold senior positions in Engineering, Administrative and HSE departments 73% of Range s staff hold a combination of technical, graduate and post-graduate qualifications of which 57% of the entire workforce are graduates of local universities. Range is committed to local content - >95% of purchases are local Standard Training In addition to job specific training, Range provides standard industry related training Engineering HSE staff Administrative staff Basic Well Control Fire Training Confined Space First Aid/CPR Fall Protection HSE Leadership & Permit to Work Wellcap Well Control P.L.E.A. Passport 6

7 Strategic Partnerships and Funding Oilfield Services Partner: LandOcean Energy Services Co., Ltd (IMSA in place) Funding Partners: Abraham Ltd long-term investor (14% shareholder) Range s strong strategic Chinese partnerships provide access to sophisticated services as well as financial backing Additional Financial Backing: US$60 million equity based financing secured from Core Capital US$50 million credit facility secured from Sinosure for Trinidad waterflood programmes Range s CEO visits Trinidad 7

8 LandOcean as a Partner LandOcean Energy Services LandOcean is one of the largest listed oil and gas services companies in China with market cap c.us$ 1.4 billion LandOcean provides a wide variety of services across the upstream development cycle Range is very pleased to have LandOcean as a highly capable and technically sophisticated preferred services provider Strategic partnership provides access to sophisticated oilfield services as well as additional financial backing June Range entered into an Integrated Master Services Agreement with LandOcean June 2014 Entered into first purchase order to provide technical G & G and engineering studies December Range has entered into the second purchase order, for the provision of technical services by LandOcean to implement water-flooding projects in Trinidad 8

9 Production Growth in Trinidad Driven by Three Projects Secondary recovery waterflood Proposed plans for extended water-flooding of Range s Trinidad Beach Marcelle, South Quarry, and Morne Diablo licences are being finalized between Range and LandOcean. Significant production growth to come from waterflood programme centred on Beach Marcelle 73% (14 mmbo) of Range s 1P Reserve base is found in Beach Marcelle Development drilling Shallow drilling in well known reservoirs with quick development from spud to production Focus now is on improving operational efficiency, and sub-surface evaluation to reduce risk and increase reward Large prospective exploration acreage Exploration of the deeper potential of the existing Morne Diablo & South Quarry Farmout blocks Exciting exploration activity on Guayaguayare Deep and Shallow PSC and newly awarded St Mary s E&P licences Range s assets locations in Trinidad Range has a large onshore acreage position in Trinidad 9

10 Waterflood Programme and Technology Current status of Range s waterflood programmes Range and LandOcean are finalising plans for implementation of extended water-flooding of Range s Trinidad MD, SQ and BM blocks Waterflood Technology Waterflood technology Most fields in Trinidad have been traditionally produced by primary recovery/infill drillings which although cost effective to produce initial oil, recovers only about 15% of the oil-in-place Due to large subsurface voidage in the formation, waterflooding pressurizes the formation and can recover at least a further 15% of the oil-in-place by. 10

11 Planned Water-flood Programmes Beach Marcelle & South Quarry In total five prospective areas were identified and evaluated both technically and economically between the licences. Blocks identified are C, NE, and SE blocks in Beach Marcelle; and Ⅱand Ⅲ blocks in South Quarry The next key steps in the programme will be to finalise preferred plan for waterflooding and commence surface studies, which will include well integrity surveys and sourcing injection water Forecasts indicate oil production could exceed 3,000 bopd for the Beach Marcelle waterflood project The Beach Marcelle waterflood project has received a Certificate of Environmental Clearance from the Environmental Management Authority. Regulatory approvals are currently pending review South Quarry Extended Waterflood (Ⅱ and Ⅲblocks) 11

12 Planned Water-flood Programmes Morne Diablo The Company had previously completed a successful pilot waterflood scheme on Morne Diablo, and can now proceed to expand this project to the remaining shallow wells The waterflood will be conducted in a phased manner with the conversion of the downdip producers to water injection wells which is expected to commence in Q The Company has received all environmental and government approvals to proceed with the Morne Diablo waterflood expansion project Structure Facies Geological Model MD Cells (ni*nj*nk):115*179*232 Total number of 3D cells:4,775,720 Cell size:10m*10m*0.5m Por Perm 12

13 Development Drilling Programme Development drilling programme Well developed infrastructure allows quick spud to production timeline The Company plans to drill a total of 6 new wells on the Morne Diablo, Beach Marcelle, South Quarry and Guayaguayare licences during Q utilizing 3 existing drilling rigs ranging in depths from 800 to 5000 feet* Access to sizeable drilling fleet 12 rigs, over 250 staff Sale of drilling services company to LandOcean to be operated by Chengdu Western Union Petro (a subsidiary of LandOcean) Chengdu Western Union Petro Engineering Technology Co., Ltd. offers highly professional oilfield services The drilling services company will continue to provide full oilfield operations services to Range in Trinidad, to accelerate Range s planned development and exploration drilling programmes LandOcean is looking to inject additional investment into new equipment and to upgrade existing rig fleet, as well as adding a 2 new rigs to the existing fleet MORNE DIABLO SHALLOW FOREST WF LOWER FOREST UPPER CRUSE MIDDLE CRUSE LOWER CRUSE A LOWER CRUSE D SOUTH QUARRY MIDDLE CRUSE Q19 SANDS LOWER CRUSE 262 SANDS LOWER CRUSE 246A SANDS LOWER CRUSE 246B SANDS *Given the recent management and corporate changes, including sale of the drilling company, these projected activities may be subject to change during the quarter 13

14 Exploration Prospects on Existing Blocks Range has a portfolio of deep and shallow exploration targets defined on 3D seismic data As part of the field licence obligations, Range has exploration commitments on its existing blocks The prospects underlie or are adjacent to the existing fields, making them relatively low risk Principal targets are in the Middle Cruse, Lower Cruse and prolific Herrera sands Range has a large portfolio of deep exploration targets to be drilled 14

15 Exploration: St Mary s E&P Licence Awarded the 182 km² St Mary s block via 2013 Onshore competitive bid. E&P Licence and JOA executed with MEEA and Petrotrin respectively Prospective acreage with multiple plays, on trend with several significant onshore producing fields, including the 150 mmbl Penal / Barrackpore field, Carapal Ridge - condensate field and other fields ranging in size between 10 and 25 mmbl Range s evaluation of existing seismic and well data has enabled the Company to identify a number of areas for immediate drilling The exploration potential of St Mary s will be assessed further through the acquisition and interpretation of new seismic MWO Commitment for exploration period: Drill 4 exploration wells Conduct 3D seismic survey Conduct 2D seismic survey Conduct other surveys and technical studies High potential leads and prospects of St Mary s 15

16 Exploration: Guayaguayare Deep & Shallow PSC In 2013, Range agreed to acquire 50% of Niko s interest and operatorship in the Guayaguayare PSCs Niko has completed work programme commitments consisting of the acquisition of 217 km² of onshore 3D seismic, and 277 km² offshore 3D seismic Range plans to fulfil the remaining MWO of drilling two onshore exploration wells (one <5,000ft and one >5,000ft) and one offshore well. 280,051 gross onshore acres 293,876 gross offshore acres Located in the Columbus Sub-Basin 16

17 New Technology Electromagnetic Surveying Near surface onshore seismic data is relatively poor in Trinidad To help reduce exploration and development risk, Range has intends to utilize an Electromagnetic Surveying tool to identify shallow resistive anomalies The Stratagem tool will be using a new VLF module previously untested in Trinidad Application is pending for approval to survey Morne Diablo and South Quarry blocks Range to conduct Geophysical survey in 2015 Stratagem Example cross section of survey line showing resistive areas in blue 17

18 Major Exploration and Development Activities Q1 2015* Licence Operator Range s WI Projected Activities Beach Marcelle Range 100% Morne Diablo Range 100% South Quarry Range 100% Guayaguayare Range 40% (Deep) 32.5% (Shallow) Drill 3 shallow infill development wells Finalise preferred plan for water-flooding and commence surface studies, which will include well integrity surveys and analysing injection water Drill 1 development well Commence the Shallow Forest water-flood Evaluate potential for water-flooding of deeper reservoirs Initiate geophysical survey Drill 1 development well Finalise preferred plan for water-flooding and commence surface studies, which will include well integrity surveys and sourcing injection water Initiate geophysical survey Drill 1 shallow exploration well St Mary's Range 80% Conduct environmental approval work and evaluation of existing data Study options for reprocess existing 3D data and acquisition of gravity and magnetic data *Given the recent management and corporate changes, including sale of the drilling company, these projected activities may be subject to change during the quarter 18

19 Wrap up 1 Low oil price environment creates reduction in taxation and royalties in line with Range s existing Farmout and IPSC contracts 2 Government incentives and Petrotrin ORR structure promote higher netbacks if production increases 3 4 These factors allow Range to benefit from a lower break even position once production is increased Range has strong financial backing through its strategic partnership with LandOcean to develop its Trinidad assets and is ready to make significant expenditures to move forward with our planned projects 19

20 Thank you. Range Resources Limited e.