Range Resources shares jump by a fifth after successful drilling at Trinidad well

 
Francesca Washtell
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Range spudded a well in Trinidad on 9 November (not pictured) (Source: Getty)

Shares in London-listed oil and gas explorer Range Resources soared more than 20 per cent today after the group said it has started drilling its next development well in an ongoing programme in Trinidad.

The well, which is located in the Morne Diablo field, is a re-drill of a former well and is expected to take around three weeks to drill.

The small-cap oil group added that its fifth and final well in the programme will start being drilled at the onshore Beach Marcelle field in the Caribbean island nation in December, where an oil rig is still waiting for regulatory approval.

Read more: Range Resources hires advisers

Range's share price soared 20.24 per cent in early afternoon trading to 0.409p.

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The group entered Trinidad, where its operations are focused, in 2011 through the acquisition of three producing onshore licences and holds stakes in projects in Guatemala and Georgia.

Low oil prices hit Range hard in the last year, almost halving revenue from $13.2m in 2015 to $7.1m in 2016.

Read more: Range Resources plans merger with International Petroleum

The drop in turnover weighed on profits and the company posted a loss after tax of $43.9m last year, including impairments.

Despite this, the company ended the year with increased reserves in Trinidad and a "mutually beneficial partnership" with its strategic partner, LandOcean.

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