Range Charges Ahead at Trinidad
Range provided the following update with respect to its international operations.
Following receipt of the necessary Trinidadian authority approvals for the release, the Company announced that Rig 1 successfully completed the drilling of the step out QUN116ST well and encountered approximately 66 feet of net pay zone in the Lower Forest Sands. Following the drilling of the well to target depth, casing was set to 975 ft and the well then turned to production, with initial natural pressure flow rates of 50 bopd which has exceeded the Company's targeted rates on the shallow 1,000ft wells of 15-30
bopd. This is especially encouraging given this was achieved under natural flow as opposed to under pump. Rig 1 has moved onto well location QUN 118 (being an offset to the QUN 117 well referred below), which will also be targeting the Lower Forest sands and is currently drilling with a total depth of 950 feet.
Rig 2 has reached the extended target depth on the QUN117 well of 2,400 ft, with good oil sands and oil shows encountered approximately between 560-830 feet and 2220-2300 feet. The initial results from this well look to have extended the Lower Forest and Upper Cruse trend to the east of existing wells and confirmed the predictions that the current well program would extend the existing fields. A production rig has been moved onto the location for production flow testing with early indications exceeding the Company's
expectation on the 2,000ft wells (50-100 bopd target) as well as confirming the potential for possible production from both the Lower Forest and Upper Cruse trends.
Rig 2 is being moved along trend targeting the Lower Forest and Upper Cruse oil sands approximately 400 feet east of this well with the new location already constructed in readiness to spud the QUN 119 well.
Rig 8 has been moved to the MD 248 location and rigging up awaiting Ministry inspection, expected to be received in the coming weeks. The well has a target depth of 6,500 ft and will be targeting the Middle Cruse and Lower Cruse sands. This well is the first of three (3) deeper wells that the Company hopes will extend the main field Middle Cruse trend in the east and west direction, and
also test for the deeper, Lower Cruse sands expected immediately below.
The forecast increase to 1,400 - 1,800 bopd from existing wells and the current 21 well program is well on target and confirmed by the current program to date. The scheduled completion of the 21 well program has been moved to Q1 2012 with 10 wells expected to be completed by year end.
The Company is also pleased to report that it has recently added an additional 70 operational personnel to the Trinidad team with the various mechanical departments now operating 24 hour work schedules in support of the expanding drilling operations. A number of sites have already been prepared for the current rigs in operation (6 sites for Rig 1, 2 sites for Rig 2 and the second site for Rig 8 currently under construction) which are expected to allow the seamless transition for each rig onto their next drilling target.
Following a further internal and independent review of the seismic on the Kursebi area, the Company, along with its partners in Georgia can confirm that work is due to commence on the preparation of the well site and surrounds in readiness to receive the drilling rig for the spudding of the second exploration well on the Kursebi 2 prospect. Targeted spud date is late December/early January.
As identified in the RPS report announced in December 2010, the Kursebi 2 prospect has mean unrisked gross undiscovered estimated oil in place of 160MMbbls (Range's 40% attributable interest is 64MMbbls).
Texas - North Chapman Ranch
The Company also announced that completion operations and flow testing is underway on the Smith #2 Well with good initial hydrocarbon shows recorded in the objective Howell Hight section - with total gross pay comparable to the Smith #1 well (130 ft). The well will now be fracture stimulated to look to maximize production, as was successfully undertaken on the Smith #1 and Russel Bevly wells. The Company will provide further updates in due course.
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