LONDON (Alliance News) - Range Resources Ltd on Wednesday said it discovered multiple zones containing hydrocarbons within the latest well to be drilled in Trinidad, but that the more wells it drills on the current drilling pad then the longer it will take for commercial production to begin.
Range Resources shares were trading up 22% to 0.428 pence per share on Wednesday morning.
The company said the MD250 well intersected four sand intervals in the lower zone of the well lying between 3,350 and 3,900 feet depth, with a combined net pay estimated to be around 40.0 feet in size.
On top of that, Range has said it hit "other promising" intervals located in the middle and upper zones of the well which have an estimated net pay of 100.0 feet.
The company plans to conduct a production test on the four smaller intervals with the 40.0 feet net pay before moving on to the other promising intervals. Regulatory approvals are needed before Range can production test either of those targets.
The MD250 well was completed ahead of schedule using a five-and-a-half inch casing string cemented to the surface. It was the first well to be drilled using the new rig from LandOcean Energy Services Co Ltd.
"Once production testing on the MD 250 well has been completed, the company will evaluate the possibility of drilling any follow on wells from the drilling pad dependent on the results from this well," said the company.
"If the company decides to drill follow on wells from the drilling pad, all wells will be brought into production only once all drilling operations on the pad are completed," it added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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