Range Workers in the Field - Photo by Range

JAKARTA (TheInsiderStories) – Range Resources Ltd., a U.K.-based oil and gas company with assets in Trinidad and Indonesia, said it targets to commence first oil and gas production at its Perlak field, Aceh, Indonesia in mid-2018.

Since completing the acquisition on Oct. 30, 2017, the principal work undertaken has included building an experienced team in Indonesia; working with Pertamina, the Indonesian state-owned oil, and natural gas corporation, on finalizing a work program and budget; and undertaking initial geological and geophysical studies.

The company said an experienced operations team of 16 people and two offices, including a field office in Aceh province and a corporate office in Jakarta, have been successfully established. Active recruitment is currently ongoing to fill the remaining positions.

The company is also delighted to announce that the work program and budget for 2018 have been approved by Pertamina. The agreed work program significantly exceeds the minimum work obligation for 2018.

The work programs encompass reopening of up to 10 existing, previously producing wells; — 2 workovers of previously producing wells; and — Geological, geophysical and integrity studies.

This work programme has been designed to swiftly reinitiate production from the historically producing Perlak oilfield in 2018. It is expected that reopening and workovers on the planned wells could add up to 200 barrels of oil per day (bopd) of production (gross).

The produced oil will be sold to Pertamina at the nearest oil receiving point to the Perlak field. This is located approximately 160 km away and the production will be trucked to the sale point.

The total forecast expenditure for 2018, including well reopening, workovers and other required field work such as storage and trucking infrastructure is approximately US$6 million (gross). Under the terms of the various shareholder agreements, Range funds 60 per cent of the net costs of the operating company, PT Aceh Timur Kawai Energi.

“We are hugely excited to be announcing an accelerated work programme in Indonesia. Following the completion of the initial study work, Range and its partners have developed a plan to target a rapid return to production by undertaking a low risk, focused work programme,” Yan Liu, Range’s Chief Executive Officer, said.

“This is a first step towards unlocking the full potential of this highly prospective asset, which has the potential to deliver significant benefits to our shareholders in the form of increased production, cash flows, and new development opportunities,” Liu said.

Perlak overview

Perlak is an established oilfield, located in a mature hydrocarbon province of North Sumatra. The field is one of the oldest producing fields in the world, first discovered in 1899 and lies on-trend with many producing hydrocarbon fields.

The field was produced primarily in the period up to the early 1940s and there has been limited activity carried out since that time. Approximately 50 million barrels of oil have been produced to date from shallow depths of less than 3,300 feet of very light oil with average API of 45-50 degrees.

On Nov. 29, 2017, the independent consultants LEAP Energy Partners Sdn. Bhd, prepared a Competent Person’s Report (CPR) on the Perlak field.

Range entered Indonesia in 2017 by acquiring interests in the Perlak field. The field is located in an established hydrocarbon province of Aceh, Northeast Sumatran basin and covers an area of 10.4 km2. The field is one of the oldest producing oilfields in the world, first discovered in 1899. It lies on-trend with many producing hydrocarbon fields, including the giant Arun field.

Perlak field produced oil primarily in the period up to the early 1940s from the Crestal part of the structure. Over 300 wells have been drilled to date, with 250 of those put into production. The field has produced approximately 60,000 bopd from shallow depths of less than 1,000 meters (3,300 feet). The oil is very light with average API of 45-50 degrees. The average recovery factor of the developed area to date is estimated at 36 per cent.

The mature operating environment offers low-cost development opportunities in the field with potentially short lead times to production. In addition, the Company believes that substantial potential exists in the areas of the field that have not yet been developed.

The field was shut-in during World War II and there has been limited activity carried out since that time, mainly by smaller local operators. Eleven wells had been drilled on the field since 1970s. Two of the more recent wells drilled in 2011 were put into the production of 180 and 100 bopd, respectively, producing high-quality oil 53 degrees API.

The field benefits from 2D and 3D seismic which has been obtained by previous operators and will be evaluated as part of the upcoming work program.

Range’s initial 23 per cent interest will increase to 42 per cent upon completion of the minimum work program. The company holds the license to operate the block until 2032.

Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com

 

 

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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