Range Resources has good news after first drill

AIM-listed mining firm Range Resources was pleased with the results of the drilling of the first of a 21-well programme by its subsidiary, Trincan Oil, in the Morne Diable Block in Trinidad, even if the market was not. The well is producing high qualiy oil at initial water-free test rates of around 20 barrels of oil per day (bopd), with higher rates dependent on pump selection and depletion by offset well bores. The company said: "It is important to note that this first well was a replacement in-fill well to an old well, hence the company is extremely pleased with the success of this replacement well given the higher than expecte net pay zone encountered." The group said it is confident that it can increase production to between 1,400 and 1,800 bopd.Following on from the success of the first well, the rig commenced and completeted a step out well targeting the Lower Forest. Tests have been run with results indicating extremely attractive resistivity oil sands across 215 feett. Completion plans have been lodged for approval with local authorities with an aim to have the well completed and producing within the week, the company added. Despite the positive news, the share price dropped 5.88% to 12.00p at 12:46. NR