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Trinity Exploration sells west coast Trinidad assets to Range Resources

Average production from the licences was 190 barrels daily in 2016 with 2P reserves of 2.6mln barrels.
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Range will boost production by 33% through the deal

Trinity Exploration PLC (LON:TRIN) has agreed to sell a block of producing assets in Trinidad to island neighbour Range Resources PLC (LON:RRL).

Range is paying US$4.55mln for the assets, which are in the Brighton Marine/Point Ligoure-Guapo Bay licence areas.

Average production from the licences was 190 barrels daily in 2016 with 2P reserves of 2.6mln barrels. Trinity booked a pre-tax loss of US$2.1mln from the assets over that year.

Range added that the acquisition increases its current production in Trinidad by approximately 33% to over 800 bopd, while also boosting its footprint and providing significant operational synergies with its existing operations.

Cost of acquisition is about US$1.75mln per 2P barrel.

It is Range’s second acquisition this month following the purchase of a stake in production assets in Indonesia.

The Brighton Marine field has been in production since the 1950's with over 60mln barrels produced to date. It is operated primarily via 9 unmanned, offshore platforms with all oil handling and sales infrastructure in place onshore.

The current Point Ligoure licence was awarded to Trinity in 2012 and also has a long history of production.

Kerry Gu, Range's chairman, said:  "We are extremely pleased to have agreed a second acquisition of upstream assets this month. Expansion of our existing portfolio of producing assets in Trinidad will not only provide additional production, cashflows, reserves, drill targets and enhanced oil recovery potential, but it is also expected to result in further improvements to the cost structure across our Trinidad business.

"We see significant potential within the West Coast Assets to grow production and believe that these assets are highly complementary to our existing portfolio. We look forward to welcoming the skilled West Coast operating team to Range."

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