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Range Resources

Water Flood

(ASX:RRS / AIM:RRL / PINK:RGRLF & RGRYY)
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Water Flood

Post Fri May 25, 2018 4:44 pm

The latest RNS doesn't mention the water flood operations and it is apparent that the production results from LandOcean's plans fell far short of expectations.

No wonder Petrotrin is not using Range as advisors re enhanced recovery but what can shareholders expect from the water flood operations going forward? Will they ever provide value for money and what action are Range taking to improve water flood results? Is it possible or is it just that the Beach Marcelle geology is too porous.

It would be nice for the company to be honest about how bad the water flood failure is and whether anything can be done to improve its effect on production.
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Rexco
 
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Re: Water Flood

Post Fri May 25, 2018 6:54 pm

it is apparent that the production results from LandOcean's plans fell far short of expectations.
-------------------------------------------------------------------------------------------------------------

Rex, I cant be bothered to look back but what bwpd did the higher bopd expectations say ?

We know they have struggled to control fluctuations in injection rates & are still (after 4 months) looking for the right solution - as I mentioned twice recently

Yesterday from Eva
"The operations team is looking at options to stabilise injection rates in a more consistent way including installation of a pump. We will update all shareholders on any developments."

I suspect the much higher bopd expectations were assuming much higher water being used.
Diablo maxed out at circa 40-50bopd and Marcelle after 6 months did jump from 90 to 190 bopd but as they havent found their solution, it cant go any higher currently

As others have said, Range are finally cottoning on that under promise & over deliver is much better all round than the other way round.

Whatever happened to liardau's 10,000 bopd target ? lol

We are getting there & have turned the corner & are constantly improving performance
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Loadsamoney
 
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Re: Water Flood

Post Fri May 25, 2018 7:05 pm

Rexco - I don't know what the story about water flood is either.

BUT that RNS was to tell the world that Range has (finally) hit a production target. That is a highly significant fact in itself - even if the actual bbd numbers are relatively small (but a lot more than 12 months ago)

The RNS is presenting some evidence that the current management team do what they say and don't tell lies - that is of strategic significance in communicating 'new range' to the market. As such it merits an RNS that focuses just on that.

We have had good, and bad, news on water flood in various other comms and I am sure we will get a lot more on specific operational updates on water flood and the rest.

In my view the comms strategy is about giving us (as frequent as realistically possible) material (if small) improvements that are steps forward in the 'new range' story, such as "we won 10 days work for Shell".
tennents
 
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Re: Water Flood

Post Fri May 25, 2018 7:43 pm

A couple of points
tennents - the figure may be more than a year ago but it is far short of the 2500 bopd that was being touted for the end of 2017.
Diablo waterflood they have conceded is dead in the excuse the pun water. They discovered geological problems and no further work is proposed. The geology of T&T is highly fractured.
Marcelle seemed to be that they just can't get enough water and then a pump capable of dealing with it. It is ominous that after 4 months they don't seem to have the pump problem sorted.

I think we have been royally screwed by Landocean, the so called experts in waterflood who have dropped the baby and left the island leaving Range to face the consequences.
It raises the question on why Landocean has given Range such generous credit terms. Is it a case that a company that owes you money is less likely to sue you for gross incompetence?
WE are unlikely ever to know the truth behind Landoceans contribution to the waterflood results and no amount of asking, unless by Sibo or Abrahams, will produce the real reasons.
I reckon that little of the current increase in bopd is down to waterflood.
Nedkellylandau
 
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Re: Water Flood

Post Sat May 26, 2018 12:18 am

Loadsa, Eva will indignantly treat you like a nuisance for pushing for more information as she has with me on 248, RBL, rig signoff, financing, bopd target 1 -10 etc etc etc. She has been the investor contact since the share price was 16p.

This seems more like a strategic scramble where in typical range fashion they will pat off any questions on what happened to the old strategy and pretend this was the plan all along
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Razzledazzle
 
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Re: Water Flood

Post Sat May 26, 2018 9:54 am

Razz

Its why Range desperately needs a Director of PR/Comms

Ive known Eva that long too...those were the days 16p & above (altho I remember it way before it even got to 16p !) ! And Im sure Liardau mentioned 10,000 bopd back then too !

As for waterflood, the bit that gets me is since Jan RNS we have been looking for a solution on Marcelle waterflood & as at the other day, were still looking.... 4 months later.
I can understand buying something & having to wait for it to be build or shipped in or installed but cant understand it taking 4 months and counting to decide what to do ! Is there a problem with Marcelle now I wonder ? If it was such a great success, Id have thought we would be planning for starting many many more waterfloods on Trin by now - bearing in mind it takes months to build up pressure that any results wont be seen until 2019 anyway.

As for mention of bopd targets, what option did Range have but to underplay the targets & thererore stick with a 1000 target ? They are trying to get sub contract work as its obviously very profitable. Clearly so far, no new contracts have been secured so they are cracking on with workovers etc & bopd increase is ahead of underplayed targets.

Personally, Id have preferred a load of sub contract work to come through & Range only just meeting 1000 target BUT as WTI keeps increasing we are now in a win
+ win situation & its clear it was a great move to buy back RRDSL.

In 8 weeks time well have that last quarterly report that makes up the full year & then in Oct, the fill year accounts that will, compared to past 2x years or so, show stonking improvements that will finally give confidence back in Range after many failed years

Next up should be Indonesia update which we were massively accelerating from 3 year plan to less than 1 year. Once we get that increased ownership % out there, it will be good to see what the real plans are after than

Off to enjoy the bank hol sunshine LOL

Loadsa
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Loadsamoney
 
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Re: Water Flood

Post Sat May 26, 2018 10:23 am

Loadsa - agree completely with your analysis. Also, thanks for sharing your communication with Eva. Is waterflood dead in the water? That is very much a growing suspicion amongst shareholders and it’s down to the company to let us know. GLA
rasclaat bambaclaat
 
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Re: Water Flood

Post Sat May 26, 2018 11:17 am

cheers RB
re Waterflood - who knows ? and is unlikely we will get the real truth

I cannot believe it can take 4 months to just decide on what course of action to take. Surely (oops better not use that work, Omas knicked it on lse) there are only a few options & you then cost up each option taking in account the risks & rewards etc...& make a decision. It doesnt take 4 bloody months to decide !

As most have said here, the geology in Trin is complicated & fractured so what do we do ? Outsource as much as possible ? Drill more wells ? - shallows have proven to be expensive to maintain given depletion's. I just dont know

Its why the Indo play is interesting, especially after we do the min agreed to get to the increased ownership %. I can see a time where Trin isnt our biggest play who knows, maybe Trin becomes just a sub contract site over time ?

I for 1 am really pleased to see 3x quarterly improving performances. They are also underplaying targets - rightly so given we dont know what the crews & rigs will be doing. I can see the SP taking off for good once my numbers are confirmed in full year accounts. Receipts + bopd + losses all dramatically improved over last 2x years.
Only then do I see confidence & more importantly new shareholders join the party. End July will be the 4th quarterly update so we can figure out full year for those - even though full year wont be out till Oct

Next up, Indo updater I suspect & sooner or later will be the 900 bopd news

Good luck

rasclaat bambaclaat wrote:
> Loadsa - agree completely with your analysis. Also, thanks for sharing your
> communication with Eva. Is waterflood dead in the water? That is very much
> a growing suspicion amongst shareholders and it’s down to the company to
> let us know. GLA
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Loadsamoney
 
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Re: Water Flood

Post Sat May 26, 2018 11:40 am

This is typical range. Remember how long they were analysing 'abundant new data' at MD. That bought them almost a year of not having to fess up. Then boom, dropped into a quarterly.... Indefinitely on hold. Oh well, at least it only cost 80 million.
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Razzledazzle
 
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Re: Water Flood

Post Tue May 29, 2018 6:54 am

I think the workovers are them trying to desperately buy time whilst attempting one last save for WF. If the pump issue (which is clearly more than just finding the right pump) can’t be solved, then it’s done and we’re
done.

If the pump issue can be solved, then happy days....

I really can’t comment on the likelihood of either, since we are being told half truths about the WF issue.
Canaries60
 
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Re: Water Flood

Post Tue May 29, 2018 9:20 am

Nail on head
rasclaat bambaclaat
 
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Re: Water Flood

Post Tue May 29, 2018 1:40 pm

I wonder what Malcy thinks about this? Did he see and comment on water flood operations?
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Rexco
 
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Re: Water Flood

Post Fri Jun 01, 2018 2:36 pm

Malcy is as underwater as us I would think so no he is not going to mention the colossal failure of waterflood.

The only way we are going to hit that 1000 target is by drilling more wells, making better use of what waterflood is actually working and opening up Indonesia more. However we have already been told that the oil in Indonesia is piddly amounts.

We are going to be very lucky if we make 1000 by Christmas and fast running out of options. We still have a massive debt for a service (waterflood) that did not work.

Not a great situation but perhaps better than last year, or the year before that, anon.

Lets see where we are at calendar year end.
Indi
 
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Re: Water Flood

Post Fri Jun 01, 2018 10:37 pm

Indi

Im no expert on waterflood but id say its difficult to know exactly what the outcome will be until you start pumping water through & build the pressure over a period of months
Id agree that previous predictions on waterflood expectations may have been Landauesk & optimistic ! and yes, we have spent a lot of money finding out but how else do you find out ?

As for 1000 bopd target, you say the only way to achieve that is via drilling more wells. We seem to be doing fine just doing workovers etc since new year so why cant we reach 1000 bopd that way ?

Or we could turn the clock back to suspension time when we were getting 550 bopd or the 2 years prior to that when WTI was under $40 a barrel & hardly worth getting the oil out the ground for

Id much rather take the situation we are in now with the last 3x quarterly reports showing better and better performance & returns. Full year will confirm my thoughts that this year will be the best ever in terms of ave bopd and receipts and profit/loss account etc.....


Or you could listen too much to what Omadawn aka Surely says or his newest multi id chum yuff aka Delft - just when you think these multiple id multiple banned and very clearly ex shareholders cant get any more stupid, along comes new ids from the same banned people to prove you totally wrong eh Delft !

GET YOUR FACTS STRAIGHT DELFT

On Fri 25th May I said I had a reply from Eva the day before - I make that Thur 24th
THIS WEEK on 29th May I got a an automated reply saying shes out of the office until Tues 5th June If you are capable of writing, try emailing her & you will get the exact same message I got.
For the record, the EXACT message you will get says

"Thank you for your email.

I am currently out of the office until Tuesday 5 June with limited access to emails. If you query is urgent, please call the office on +44 203 865 8430.

Kind Regards

Eva"


*** Stop being a fking twisted fwit - leave that to OmaSurely, that's his job...Ta***
How are those 1000 Trinity merger theories coming on Oma ?
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Loadsamoney
 
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Re: Water Flood

Post Thu Jun 07, 2018 8:15 pm

Delft
You just got your arse kicked off LSE. What are your chances of survival on WS. Stupid troll!
Nedkellylandau
 
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Re: Water Flood

Post Fri Jun 08, 2018 11:07 am

Dont tell me that complete idiot Delft, the multi ID troll from LSE, created a WS ID, posted & got banned all in same day - really ?
If he had a brain cell hed be dangerous.

Back to Waterflood and more importantly the next Q&A

1) Why does it take 4-5 months and counting to make a decision on Waterflood when LO are supposedly World leaders in waterflood ?
2) What are the options to resolve the problem ?
3) what exactly is the problem ?
4) Why, is they are experts in Waterflood, didnt they consider the problem & a potential solution a long time ago
5) When can we expect a solution ?
6) When can we expect and purchased solution to be bought ? Installed ? working ?
7) During this period of installation, what is likely to happen to water pressure & bopd ?
8) When do Range envisage Marcelles circa 200 bopd to go up now - bearing in ming in the past there was talk of 2500 bopd and 1000 average for 2018 & now its just hit 1000 in 2018
9) Why is it after all these months of trying to win contracts, range havent won one ?
10) If Range was to go flat out only on Workovers this year, how long before we will have been round & done them all & then what do we do ?
11) How do the issues with Marcelle affect our plans to initiate multiple new waterflood systems this year or next year ?
12) Yet again comms this year with Range have been at best poor. Given that Turnover is now way over $10m, please can the Board consider a full time PR/Communications Director as we need to get the message out there & keep the message going - waterflood 5 months decision a good example of how not to do it !
13) What was the point of the so called PR push in Jan if nothing to back it up with & the SP drifts back after every half decent RNS ?
14) What options are Range looking at to sort out the Finance mess with LO incl Bond - is it likely to be a combo of more shares in issue ? Another Loan ? Extension of existing loan ?
15) Lo have had about $40m of our money to increase bopd with waterflood mainly. Have we had value for money & if not what was in the contract regarding performance expectations or penalty clauses ? Can we go after them on grounds of lack of performance/expectations or is the 40m done for, tough, the answer ?
16) When the remuneration vote last year was voted down, was any discussions held with the shareholder about performance expectations for this year re Share price and or BOPD ?
17) Are Range concerned the remuneration vote will be voted down again & if so what is the likely outcome ? Director resignations, Vote of No Confidence ?
18) Wasnt it Abrahams that voted down the remuneration last time round - they had the right number of votes to match the against figure
19) Are Abrahams connected in any way - directly or indirectly - with land Ocean - our waterflood "experts" ?
20) Cant think of a 20...brain gone numb !


Come on, there has to be others on here with burning questions, lets discuss them & get a WS combined list together so we can see if Range dodge the questions or not.
To start with Razz & Ned must have questions
BTW - Im happy to amend my questions if they can be worded better
Or is it time to turn the lights out on WS as most active members seem to be new trolls from the other side !
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Loadsamoney
 
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Re: Water Flood

Post Fri Jun 08, 2018 11:55 am

Loadsamoney wrote:
> 10) If Range was to go flat out only on Workovers this year, how long
> before we will have been round & done them all & then what do we do?

There are over 600 wells across the fields Range operates, of which approx 180 are producing.
Range worked over 233 wells in 2017.

I think some of them they never get round to and others that need re-visiting periodically, therefore I would be interested to know:

How long after a well has been drilled by Range and put into production before it typically requires some kind of workover or maintenance activity (i.e. clean-out, optimisation, recompletion) and how often.

Would also be good to know what number of wells are inactive due to depletion or pressure issues, and how many are inactive due to lack of maintenance.
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day_tripper
 
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Re: Water Flood

Post Fri Jun 08, 2018 12:09 pm

I sent Eva an e-mail suggesting that if inconsistency in water supply was the issue, sometimes exceeding our requirements, then maybe rather than change the pump we should be looking at some form of expandable short term storage method to take up the slack about like they do with Gas in the UK. That way we could control the flow between the storage and the well, just an idea and not being a water flood engineer don't know if it is feasible but seems a logical solution to me. Thoughts anyone?
Celticheart07
 
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Re: Water Flood

Post Fri Jun 08, 2018 12:23 pm

Regarding the waterflood, there are still two concerns about how far they can go with this project at present, and certainly nowhere near the scope they and LO originally presented:

Source of water - they don't have enough to inject into the SE block on Beach Marcelle, how are they expecting to expand waterflooding to the other blocks on BM (ignoring SQ and MD)?

Even if they manage to obtain additional sources e.g. from Petrotrin or water wells or elsewhere, they don't currently have the infrastructure to handle the extra water, treat it and inject it.
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day_tripper
 
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Re: Water Flood

Post Fri Jun 08, 2018 12:32 pm

Spot on day tripper. You can't have waterflood without water and there is obviously supply problems.
I'd say the answer to question 11 would be NONE
It is possible to use sea water in some areas but it needs to be treated to remove bacteria before it can be injected.
Personally I think the problem is more to do with geology rather than pumps/water supply and due to faulting the water isn't going where it should be going to flush the oil.
Nedkellylandau
 
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Re: Water Flood

Post Fri Jun 08, 2018 5:05 pm

Who is Range's EOR expert now and will Range be using EOR field planning from the very start with the new oil fields that they have still to drill?

There should be a detailed EOR plan for each oil field showing primary, secondary and tertiary timeframes.

Water flood should be just part of the oil recovery plans that Range have for these fields. The fact that shareholders know little about these plans just shows how inept LandOcean were and the BOD should also be looking at whether LandOcean breached their contract if they did not have the expertise to complete and implement the matters they were employed for.

Range should not pay LandOcean anything until this has been reviewed and reported to the shareholders. Maybe the debts would be reduced significantly or expunged if LO can be shown to have breached the contract.
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Rexco
 
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