News: Range Resources continues testing of Atzam-5 oil well

Range Resources (ASX:RRS, AIM:RRL) has advised that operator Latin American Resources is currently evaluating acid wash and stimulation of the most prospective C18 carbonate reservoirs at its Atzam-5 oil well in Guatemala.

This is AIMed at trying to establish commercial flow rates from the C18 carbonates.

The company has a 24% direct and indirect interest in the Atzam oil field.

If this is not undertaken, the testing program will move up to the C17 section which is the producing reservoir unit in the Atzam-4 well.

Testing operations at Atzam-5 are recommenced in mid-July with the perforating of 4 prospective C18 carbonate intervals located behind production casing using a larger 7 inch perforation gun to enable more of the targeted carbonate sections to be opened up.

Oil and reservoir water was produced whilst testing these perforated C18 zones both individually and comingled, but not at material commercial rates to put the well immediately on production.

LAR has estimated that about 200 feet of potential net pay was intersected across all carbonate sections drilled in Atzam-5 from the Schlumberger log analysis.

In addition, the Atzam-4 well continues to produce 170 barrels of oil per day from natural reservoir pressure.

Range also has oil production from its Trinidad operations, which produced an average of 529 barrels of oil per day during the June 2014 quarter.

It had $6.47 million in cash as of 30 June 2014.