leadf
logo-loader

Range Resources acquires interest in prospective Texas oil field

no_picture_pai.jpg

Range Resources (ASX, LON:RRS) has acquired a 13.56% interest in a second Texas oil field, in the Red River County that was home to a recent oil discovery.

The 1,570 gross acres was acquired for total leasehold acquisition costs of $US254,000.

Development of the shallow oil reservoir in the Cotton Valley formation is expected to begin in July with the drilling of a horizontal appraisal well in the field.  Gross recoverable reserves in the formation are estimated to hold between 4 to 6 million barrels of oil, although it has not yet been signed off as being consistent with the SAPE reserve and resources reporting guidelines.

The Company has commissioned independent petroleum consultants Lonquist & Co. LLC to certify the recoverable reserves of the Cotton Valley formation located on the Range acreage.

The East Texas Cotton Valley oil accumulation was discovered in March of 2008 with the drilling of a vertical well to approximately 5,500 ft. The initial well encountered more than 100 ft. of gross oil pay at approximately 5,300 ft and was immediately placed into production.

A horizontal appraisal well spudded in December of 2008 encountered good quality reservoir in a lateral section approximately 1,500 ft. long, but was badly damaged during completion. A second horizontal well is expected to spud in the third quarter of this year.

If successful, the upcoming well will trigger further development of the Cotton Valley field that could ultimately see more than 20 additional wells, with a targeted average recovery per well of over 220,000 barrels of oil. With horizontal well costs estimated at $1.57MM, gross finding & development costs are expected to be less than $7. 15/bbl.

Russell Bevly #1 appraisal well

The Russell Bevly #1 appraisal well, 20% working interest owned by Range, part of the North Chapman Ranch Joint Venture’s multi‐well program in Texas has now been drilled to the intermediate casing depth of 11,400 ft.

Following this, open hole logs were acquired and 9 5/8" casing set and cemented. Drilling has recommenced towards the proposed target depth of ~14,000 ft (4,268m).

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Mirriad Advertising half-year top-line results up 27% driven by a stronger...

Mirriad Advertising PLC (AIM:MIRI, FRA:8WQ, OTCQX:MMDDF) CEO Stephan Beringer talks to Proactive about the in-content advertising company's half-year results for the six months ended 30 June 2021. Beringer says revenue increased by 27% to £1.2M driven by its focus on the US, including signing...

1 hour, 45 minutes ago

2 min read