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21 Dec 2009 07:00
21 December 2009
Company AnnouncementsAustralian Securities ExchangeExchange Plaza2 The EsplanadePERTH WA 6000By E-lodgment
RANGE CONFIRMS COMMERCIAL OIL AND GAS DISCOVERY IN TEXAS / PUNTLAND
PARLIAMENTARY APPROVAL OF AMENDED PSA'S
Range Resources Limited ("Range" or "the Company") is pleased to provide the following key updates in respect of:
* Testing confirms commercial discovery for Smith #1 Well in the North Chapman Ranch area, Texas; and * Puntland Parliament passes the Amended PSA's for Dharoor and Nugaal Valleys following Government and Cabinet approval.
Smith #1 well, North Chapman Ranch
The Smith #1 was drilled and logged to a depth of 13,975' (4,260m). Based on open-hole logs indicating approximately 120' (37m) of net pay thickness in three zones with no water, 4 1/2" production casing was run to TD and cemented in place. After an interval of just 20' (6.2m) in one of the three zones was perforated, bottom-hole pressure was estimated to be approximately 11,650 psi.
The well was unloaded on a 6/64" choke until gas reached the surface, and subsequently opened to a 10/64" choke for 5 hours to clean the well up. Despite the small choke size, the average rate during this period was 2.4 million cubic feet of gas and 191 barrels of oil per day with no water. Final flowing casing pressure was 6,354 psi.
The well was shut in with a final measured casing pressure of over 9,000 psi.
The Smith well remains shut in awaiting production facilities and pipeline connection. Current plans are to perform additional testing of the well into the sales line and finish the completion at that time. Further test data (including reservoir size and reserve figures) will be released once completion operations are finalized, with first production and sales expected to occur in January 2010.
The well partners (Range - 25%) have also purchased an additional 560 acres in the area bringing the total leased area in the prospect to 1,680 acres.
Well DetailsName of well Smith #1 Spud date 4 September 2009 Total depth 13,975 ft (4,260m) RRS working interest 25%
Puntland Parliament Approves PSAs
As announced by Range Resources on 14 December 2009, the Cabinet of the Puntland Government approved the amended agreements modifying the terms of the existing Production Sharing Agreements ("PSAs") made in respect of the Dharoor and Nugaal Valley Exploration Areas which was still subject to ratification by the Parliament of the Puntland State of Somalia ("the Parliament"). The Company is pleased to announce that the Parliament has formally approved and ratified these amended agreements paving the way for Africa Oil to now commence operations and drilling of the first exploration well in Puntland in over 16 years.
For and on behalf of the Board
RegardsPeter LandauExecutive DirectorEnd
For further information please contact:
Range ResourcesPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Conduit PRDavid Tasker Jonathan CharlesTel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7429 6666Em: david.tasker@ppr.com.au Em: jonathan@conduitpr.comThreadneedle Communications (regarding Georgia)Laurence ReadTel: +44 (0) 20 7653 9855Em: Laurence.read@threadneedlepr.co.uk
RFC Corporate Finance (Nominated Advisor) Fox-Davies Capital (Broker) Stuart Laing
Daniel Fox-DaviesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 936 520
Background on North Chapman Ranch
Range holds a 25% working interest in the Smith #1 discovery well, which is expected to trigger additional appraisal and development drilling with very attractive economics, at a time when exploration and development costs in the US remain relatively low. The references to gas flow rates have been provided by the operator of the well, Crest Resources Inc., reviewed by Mark Patterson a petroleum geologist director and partner of Texas Energy Advisers LLC (who act as consultants to Range), who has over 25 years of relevant experience in the oil & gas sector, and found to be consistent with the SPE Guidelines.
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