Range has acquired an additional 8.1875% working interest in its East Texas Cotton Valley project for a total of $148,000 in lease acquisition costs and an overriding royalty retained by the seller.
Range's participating interest in the shallow oil project now totals 21.75%. The acquisition represents an opportunistic additional investment in the prospect as Range and its partners prepare to spud the Ross 3H horizontal appraisal well in the coming weeks. The well will be the Company's first in the project area. The acquisition is expected to provide an immediate increase to the Company's oil reserves, such increase to be reported at a later date.
The Company's managing director Pete Landau added, "Increasing our interest in this shallow oil appraisal and development project just prior to spudding the next well makes good strategic sense for Range and adds oil reserves in a period of strong crude oil prices. Overall, the project is expected to be an excellent compliment to our North Chapman Ranch interests and should result in additional production and cash flow in the near term."
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