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http://www.rangeresources.com.au/fileadmin/user_upload/asx/East_Cotton_Valley_Drilling_Update.pdf

Range Resources boosted by Texan results
Fri, 27/05/2011 - 09:57 | Fiona Bond

International oil and gas explorer and producer Range Resources (RRL) is completing work on its North Chapman Ranch fracture stimulation programme in Texas, where results have seen a dramatic increase in oil and gas flow rates from its Russell-Bevly #1 well.

The AIM-listed company said work has now been completed on the uppermost zone of the well, where indications are that the frac was a success.

Shares in the firm were over 6% higher in morning trading.

Stabilised flow rates reached 3.5 million cubic feet of gas per day and 350 barrels of oil per day from the one zone alone, which Range believes should add substantially to the overall rate and recovery from the well, once mixed with the other completed zones.

"We couldn't be more pleased with the results of the recent frac work on the Russell-Bevly #1. Initial rates from this zone have surpassed what other operators are getting from several wells combined," said chief executive Peter Landau.

Meanwhile, in the East Clarksville field, Texas, Range and its partner are awaiting the arrival of frac equipment to begin work on the recently drilled Ross 3H horizontal well, expected to get underway within the next two weeks.

In Trinidad, Range is in the process of finalising an aggressive work programme that is expected to result in a rapid increase in production from the existing reserve base as it moves towards its targeted output of 4,000 barrels of oil per day from existing P1 and P2 reserves.

The programme will also target the deeper - and potentially larger - Herrera formation and untested areas not presently forming part of the current reserve base.

Range, which also operates in Puntland, Somalia and the Republic of Georgia, said the work programme is expected to begin in the next 30 - 45 days with the first phase encompassing nine shallow wells in the Upper Cruse, Lower Forest and Shallow Forest formations, at depths of 250 to 2,000 feet.

Initial flow rates are expected to be in the range of 40-150 barrels of oil per day per well.

"We are very excited about the imminent drilling operations in Trinidad. In preparation for what we see as an aggressive development programme designed to immediately increase oil production from the existing fields, the company is taking steps to ensure that the required equipment and drilling supplies are on hand," Landau added.

Barney Gray, research analyst at Old Park Lane Capital, said: "Range has provided a very positive update regarding its production and development assets in Texas and Trinidad. Range's progress in Texas and Trinidad continues to de-risk the business while maintaining exciting exposure to highly attractive exploration upside in Georgia and Puntland.

"With Range participating in four high impact exploration wells over the next six months, we believe that investors should see the recent weakness in the share price as an opportunity to buy the shares."

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http://www.rangeresources.com.au/operations/texas-usa/north-chapman-ranch/

http://www.rangeresources.com.au/operations/texas-usa/east-cotton-valley/