Range Resources has purchased a 23% interest in Indonesias Perlak field from Hengtai Weiye Oil and Gas for USD 3.2 million, the company announced Tuesday.
Located in northeast Sumatra, the asset is estimated to hold 500 million barrels of oil in place. While Perlak is not currently producing, some 60 million barrels of oil have been extracted from the field.
In an effort to resume production, Range Resources plans to invest USD 2.3 million over three yeas in a low-risk, low-cost work programme. Following the completion of asset redevelopment works, the companys interest in the field will increase to 42%.
The low acquisition cost, minimal work programme commitment and protection from underperformance present a very attractive opportunity for the company to expand its footprint and potentially grow its reserves base, Range Resources chairman Kerry Gu said in a statement.
(c) 2017 Bakhtar News Agency. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers