Range Energy Resources Inc. (CNSX:RGO) sole contractor of the Khalakan production-sharing contract in the Kurdistan region of Iraq, Gas Plus Khalakan (GPK), issued an operations update on Range’s Shewashan field.
The update specified:
Range financial update
Based on the GPK operation update, Range will seek to raise capital to meet its near-term capital requirements of $2.6mln and to refinance its existing short-term loans of C$5.72mln. To meet the remaining capital requirements of the phase 1 field development plan, Range expects additional capital requirements of between approximately $4mln and $5.5mln depending on the amount of proceeds received from oil sales, oil production rate, the price per barrel of oil sold, drilling and operational expenses, and cash on hand, amongst others. Range anticipates that the phase 1 field development plan capex requirements will conclude in second quarter 2017.
“We are pleased with GPK’s efforts to enhance the productivity of the Shewashan field and are delighted with the Shewashan-3 production rates. With three wells successfully drilled, it is still early in the fields development cycle, and as we learn more about the underlying reservoir geology, we look forward to additional news from the Shewashan-4 drilling results,” said Toufic Chahine, chairman of Range.
The company is a 24.95% indirect shareholder of GPK through its ownership of 49.9% of the shares of New Age Alzarooni 2 Ltd. (NAAZ2). NAAZ2 owns 50% of the shares of GPK.
Story by ProactiveInvestors