International oil and gas exploration, development and production company, Range Resources Limited (Range or the Company) is pleased to announce that the fracture stimulation program has recommenced on the North Chapman Ranch project, with the arrival on site of leading fracture stimulation specialists Frac Tech. The largest zone (second from top) on the Russell Bevly well is currently being fracture stimulated with initial results looking promising. Once successfully completed, Frac Tech will move across to the Smith #1 well and frac the upper zone, which was perforated on March 18 and this zone currently flowing at more than 1.3 MMcfd. Frac Tech will then move off site and look to return in the comings weeks to complete the fracture stimulation of any remaining zones in the Smith and Russell Bevly wells. Consistent with past fracture stimulations performed within the region, this program is expected to add to the success of the lower two zone frac of the Russell Bevly well and further improve flow rates and recovery, which should significantly increase cashflow from the field. Range will provide further updates in due course.
EAST TEXAS COTTON VALLEY
As previously announced, the Company and its partners have drilled the East Texas Cotton Valley objective section to a depth of around 5,500 ft (1,680m) in its Ross 3H #1 Well at the East Texas Cotton Valley Project. Electric logs and sidewall cores confirm approximately 130 ft. of gross oil pay in the objective section. Directional drilling operations have now commenced, with the well currently drilling ahead at approximately 4,550 ft (1,390m) measured depth. The well has a projected total hole length of 8,200ft (2,500m), including a 2,500ft (762m) horizontal section through the Cotton Valley oil reservoir. The Company will continue to provide further updates as information becomes available.
The Company would also like to announce the draw down of a further $7,255,000 of its $20,000,000 equity line facility with First Columbus LLP. Details are set out in the attached Appendix 3B.
RRS Price at posting:
29.5¢ Sentiment: ST Buy Disclosure: Held
