www.rangeresources.com.au
Range Resources Limited (“Range” or “the Company”) is both an ASX-listed (ASX: RRS) and AIM-listed (AIM: RRL) exploration and production Company, with its principal activities directed towards finding and delineating hydrocarbons in Puntland, Somalia; the Republic of Georgia, onshore Texas, USA and Trinidad.
With the planned onshore exploration drilling program in Puntland and Georgia coupled with the exploration and development programs in Texas and Trinidad, Range is well on its way to establish itself as a diversified international oil and gas exploration, development and production company with significant upside potential.
Range Resources hails well success in Trinidad
Range Resources (LON:RRL, ASX:RRS) is confident it will increase production to between 1,400 and 1,800 barrels per day from its initial 21 well program in the Morne Diablo block onshore Trinidad after the first two wells were successful.
The first of the 21 well programme has now been completed, producing high quality oil at a test rate of 20 barrels per day.
Following the first well, the rig started and completed a step out well targeting the Lower Forest sands at a depth of approximately 1,000 feet. According to Range, the results indicated “extremely attractive” resistivity oil sands across 215 feet.
The group was “extremely pleased” with the results as the first well, which was drilled as a replacement to an old well, encountered a higher than expected net pay zone. Range added that higher rates from the first well will depend on final pump selection and depletion by offset well bores.
Range is now waiting for its completion plans to be approved by the Trinidad authorities, expecting to produce from the second well within the week.
In the meantime, another rig has now been moved to the site of the third well, which will also be a step out well.
Range is currently expecting another rig to join and accelerate the current development well program once certified in the coming week or two.
Range noted that a total of three of the current 21 wells in the program are replacement wells, as opposed to step out wells.
The group has also provided a corporate update, telling investors that it has extended its equity line of credit facility for an extra £30 million with First Columbus/Duchess.
Range said it is fully funded for its exploration activities with existing cash and around £15 million due from the exercise of `in-the-money' options due to expire before the end of 2011.
In the event of a discovery on any of Range’s exploration wells being drilled in the coming months, Range will have immediate access to funds for any appraisal operations if necessary.
Shares in Range Resources traded at 11.75 pence this morning, 8 percent down from Friday’s close. The company currently has a market cap of £200.5 million.
