Colombia - Exploration / Appraisal
During 2012 Range entered into an economic participation agreement with Petro Caribbean Resources Limited, a private oil and gas company focussed on the development of petroleum and natural gas reserves in Colombia (“PCR” the official operator of the blocks), that will see the Company earn a 65% economic interest (option to move to 75%) in Blocks PUT-6 and PUT-7 in return for funding (on a cost recoverable basis) the commitments under the Production Sharing Agreement (“PSA”) with the National Hydrocarbons Agency of Colombia (“ANH”). This includes a 350km2 3D seismic program across the two blocks followed by one exploration well in each block.
In addition to the completion of the PSA work commitments of the two blocks, the joint venture partners will also (subject to ANH regulatory approval) undertake an extensive review (and possible twin / re-entry) of a Putumayo well that was drilled and subsequently suspended in the mid 1980’s on Block PUT-7. The well had a historically reported estimate of 7.9 million barrels of recoverable oil. However, in light of the low oil price (approximately $12-15 per barrel) and infrastructure constraints at the time, the well was suspended and has not been re-assessed since. The Company is currently completing an independent technical review of this well.
The reservoir modelling and underlying data for this estimate have not yet been reviewed in sufficient detail by Range or its consultants to provide a reserve estimate compliant with the SPE reporting guidelines.
Range's License Blocks
Colombia License Blocks
PUT- 6
PUT- 7
