Range Resources Share News (RRL)

Hydrocarbon exploration company Range Resources has reported significant oil and gas production at a section of a project in Guatamala, where it has an indirect attributable interest of 24 per cent.In an operational update issued on Monday, the group cited a report published by Citation Resources disclosing that significant initial oil production had been established at the commercial Atzam number four well in Guatemala.After perforating a seven-foot section in the reservoir in the Upper C17 carbonates, the Atzam #4 well as described as having immediately started to produce fluids and gas to surface without assistance. Following an initial well clean up with recovery of fluids, the well was reported as having produced at an average rate of 610 barrels of oil (bopd) over a 24-hour period using various choke sizes. The generation of a 610 bopd average rate over this period without acid wash of the section or well swabbing was considered "a strong endorsement of the commercial potential of the well, and likely to increase the recoverable resource volumetrics for the Atzam Field," according to Citation Resources.The group said that the operator, Latin American Resources, had calculated natural reservoir pressure of over 1300 per square inch (psi) and confirmed that the open reservoir section in the Upper C17 carbonate was producing a good quality 29° American Petroleum Institute (API) oil. Range Resources' share price was up 11.70% to 3.15p at 10:13 on Monday.MF