New Range Resources Identifies 2 New Drilling Prospects
New Range Resources Ltd. announces that the sour gas well at Knopcik, Alberta and the oil and gas well at Pembina, Alberta are both on continuous production.
New Range acquired a 5 km gas pipeline that runs adjacent to the Company's land in the Pembina area. The pipeline was acquired at a nominal cost and has enabled New Range to tie in the 2-12 well to the main sales gas pipeline in the area. On July 6, 2007 the tie-in was completed and the well was placed on production. As of today's date, the well is flowing oil at a rate of 70 Bbl/day (45 Bbl/day net) with associated gas production of 200 Mcf/day (128 Mcf/day net) through a 26/45 choke.
As a result of the pipeline acquisition and the ability to deliver gas directly to the sales pipeline, two new drilling prospects are now viable for the Company from the 2-12 location at Pembina. These new wells can be drilled directionally from the 2-12 lease, which enhances the economics of the project since additional lease, road and pipeline costs are not necessary.
New Range will produce the 2-12 well for several months to determine its long range productivity before making a decision on the new drilling prospects.
New Range is the operator of the Pembina property and has a 64% working interest.
The Knopcik 14-9-74-11W6 well was placed back on production on May 24, 2007 at a restricted rate of 1.2 MMcf/day (360 Mcf/day net) and has been producing steadily at this rate since then.
In order to increase the gas rate at 14-9 the operating partner of the well is working on making the following changes and modifications in the short term:
1. Increasing the dilution gas stream available by adding compression and/or manipulating the pipeline pressures downstream of the 14-9 well.
2. Relicensing the system pipeline to a higher sour rate (from 5% to 6.5%) in order to reduce the proportional amount of dilution gas necessary and increase the production rate at 14-9.
New Range has a 30% working interest in the non-operated Knopcik well.
- New Range Resources Identifies 2 New Drilling Prospects (Jul 13)