Range Resources expects Somalia JV partner to name contractor for second well soon

Range Resources Ltd (LON:RRL, ASX:RRS) expects ist partner in Somalia, Africa Oil Corp, to appoint a contractor for a second exploration well shortly, allowing mobilisation to commence for the well in Dharoor during the third quarter 2011.

The company published a quarterly report for the period ending June 30 2011, which also saw completion of the acquisition of ownership reparding three production licences in producing onshore oilfields in Trinidad and significant local onshore drilling operations. Range is targeting a significant increase in production levels there over the next few years.

Subsequent to quarter-end, Range began its 21 development well program in Trinidad utilizing three of the company's rigs and is targeting an increase in production to between 1,400-1,800 barrels of oul per day, and an increase and reclassification of reserves along with extending the limits of the existing fields.

In Georgia, the company, along with its joint venture partners Strait Oil & Gas (UK) Ltd and Red Emperor Resources (LON:RMP, ASX:RMP),  in mid-July spudded the joint venture's first highly prospective exploration well - Mukhiani in Block Vla in Georgia

Following the completion of Mukhiani 1, the rig will move on to spud the second exploration well as part of the two well drilling program.

At North Chapman Ranch in Texas, operator Western Gulf Oil & Gas has signed a contract for a drilling rig to drill a third well in the field, currently scheduled for mid-October.  Discussions as to the location of a second 2011 well are currently underway.

Regarding the East Texas Cotton Valley prospect, Range remains optimistic about the probability of success, despite the Ross 3H well in initial tests yielding only water.

According to the company, there is a strong likelihood that neighboring operations have pushed injected water into its acreage.  Water samples are currently being analyzed to determine whether or not this is the case. Regardless of the outcome of the tests, over 2,250 feet of horizontal section remain to be tested before final results are known, the group added.

Executive director Pete Landau said: "The Ross 3H is a direct offset to a known producing well and has a horizontal section that terminates near a well that has produced over 70,000 barrels to date. We have every reason to believe that the Ross will be successfully completed as a producer.”

During the quarter the company successfully completed a capital raising of US$49 million before costs, with the majority of the money used for the acquisition of the Trinidad assets.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18277/range-resources-expects-somalia-jv-partner-to-name-contractor-for-second-well-soon-18277.html