texas-east cotton valley

Worth another check out! Will the East Cotton Valley Ops pave the way for RANGE...News is very imminent.

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

Texas - USA
North Chapman Ranch
East Cotton Valley
Puntland
Georgia
Trinidad


East Cotton Valley Prospect
Building on its success at North Chapman Ranch, the Company acquired an initial 13.56% interest in approximately 1,570 gross acres encompassing a recent oil discovery located in Red River County, Texas, which was subsequently moved to 21.75% in January 2011.

Development of the shallow oil reservoir in the Cotton Valley formation is expected to begin in early 2011 with the drilling of a horizontal appraisal well in the field, where gross recoverable reserves could be of between 4 to 6 million barrels of oil.

Background
The East Texas Cotton Valley oil accumulation was discovered in March of 2008 with the drilling of a vertical well to approximately 5,500 ft. The initial well encountered more than 100 ft. of gross oil pay at approximately 5,300 ft and was immediately placed into production. A horizontal appraisal well spudded in December of 2008 encountered good quality reservoir in a lateral section approximately 1,500 ft. long, but was badly damaged during completion.

Reserves
NOTE: report was comprised pre increase of stake to 21.75%

In conjunction with the acquisition Range, through its technical consultants Texas Energy Advisors LLC, engaged Lonquist to compile geological, geophysical and engineering data and provide an Independent Reserves Report and Valuation for the prospect.

Lonquist?s independent reserves report has estimated the following gross commercially recoverable reserves from the East Texas Cotton Valley Prospect:

Category Oil (mmbbls)
Total Reserves 5.4
Proved (P1) 1.5
Probable (P2) 1.2
Possible (P3) 2.7
Set out below is Range?s attributable interest in the gross recoverable reserves on 13.56% of the East Texas Cotton Valley Prospect:

Category Oil (mmbbls)
Total Reserves 0.72
Proved (P1) 0.20
Probable (P2) 0.16
Possible (P3) 0.36
The planned multi-well program is anticipated to move Possible (P3) Reserves into the Probable (P2) and Proved (P1) Reserve categories, with the drilling of a horizontal appraisal well in the field scheduled for early 2011.

Based on the reserve numbers cited above, Lonquist?s estimated net undiscounted cash flow value to Range, along with PW10 discounted cash flow (at a 10% discount rate) based on Nymex forward strip prices reported on 31 December 2009, following reductions for royalties, opex, capex, production taxes etc are as follows:

Reserve Category Undiscounted US$ PW10 US$
Proved (P1) 8.5m 5.4m
Probable (P2) 7.0m 4.4m
Possible (P3) 14.7m 8.1m
Estimated Future Cashflow (Range?s net interest) 30.2m 17.9m