Range Resources' Russell Bevly #1 well confirms oil and gas potential

Range Resources (ASX: RRS, AIM: RRL) has provided an update on the Russell Bevly #1 appraisal well, part of the North Chapman Ranch Joint Venture’s multi-well program in Texas.

In a statement the company said following drilling to a revised Total Depth of 14,225’ (4,337m), the operator has concluded open hole logging operations that indicate the presence of approximately 130 ft. of net oil and gas pay in the Howell Hight formation.

This exceeds the net pay thickness of the Smith #1 discovery well (Range interest – 25%) and identifies a new, potentially productive interval.
The well is currently being equipped with 4 1/2" production casing.

Peter Landau, executive director, said "the Russell‐Bevly #1 exceeds our expectations for the first appraisal well in the North Chapman Ranch field and sets the stage for additional development drilling across our acreage."

"As of casing point, the well was significantly under budgeted costs and ahead of schedule, indicating that the company and its joint venture partners are already capitalizing on information acquired during the initial test."

"We will continue to look for ways to optimize drilling and completion operations in order to keep downward pressure on finding and development costs," he added.

The Russell Bevly #1 confirms the company's structural and stratigraphic models across the northwestern flank of the field, which formed the basis of the recently released reserve report.

Once completed for production, and depending upon final production test data, the well is expected to add significant Proved Reserves, production, and cash flow to Range's Texas operations.

In September 2009,  Range  acquired a 25% interest in the  North  Chapman  Ranch  project in  Nueces  County,  Texas.

The  project  area  encompasses  approximately  1,280  acres  in  one  of  the  most  prolific  oil  and  gas  producing  trends  in  the  State  of Texas.