Range Resources Limited announce the following update with respect to the Company's Trinidad operations with the following highlights:
- The QUN 135 well makes discovery of a new oil reservoir in the Middle Cruse formation, indicating 50 ft. of net oil pay at approximately 3,500 ft., with the well successfully cemented with 5½" casing;
- The QUN 138 well successfully drilled and put into production with initial rates (five day average) of approximately 85 bopd;
- The QUN 139 well successfully reached revised target depth of 1,300 ft. and encountered total of 70 ft. of good quality oil sands, and 190 ft. of lower resistive oil sands in the Lower Forest formation to be perforated later this week; and
- The QUN 133 well perforated and drilling to commence on QUN 140 and QUN 141 wells - all targeting the Lower Forest Formation.
Middle Cruse Formation Drilling
The Company is pleased to report that following the successful deepening of the QUN 135 well to a revised target depth of 3,800 ft., the Company has made an apparent discovery of a new oil reservoir in the Middle Cruse section between 3,490 - 3,540 ft. measured depth. Open hole logs indicate 50 ft. of previously unseen oil pay with porosities in the 21-23% range, while offset well control indicate that the identified reservoir section has significant areal extent.
As previously announced the well reached a depth of 3,500 ft. and logging indicated the presence of additional resistive oil sands. The Company subsequently deepened the well and confirmed the presence of a new oil reservoir. Production casing has been run and testing will now commence. Range is extremely pleased with the results of the Company's first Middle Cruse well, with the apparent discovery of a new oil reservoir in the Middle Cruse formation along with the additional resistive sands encountered in both the Lower Forest and Upper Cruse formations.
Lower Forest Development Update
Following receipt of the approvals, the QUN 138 well was successfully perforated and placed into production with initial production rates of 85 bopd over the first five days under a 6/32" choke size. The Company will continue to monitor the performance of the well and may look to increase the choke depending on the performance of the well.
The QUN 139 well has reached its revised target depth of 1,300 ft. and encountered the presence of 70 ft. of high resistive oil sands in addition to 190 ft. of lower resistive oil sands in the Lower Forest formation. Casing has been set and cemented and approvals received to perforate the well and be placed into production later this week. As previously announced, the QUN 139 well location is contiguous to producing wells QUN 119 and QUN 129 which achieved initial production rates of 129 bopd and 138 bopd, respectively. Both wells still flow under natural pressure (QUN 129 and QUN 119 are currently producing 65 bopd and 45 bopd respectively) with QUN 119 having now produced for 12 months since first production.
Approvals have been received to commence drilling of the QUN 140 and QUN 141 wells, which will continue the development of the Lower Forest trend, being contiguous and up-dip to the recently completed and successful QUN 138 well.
In addition to the wells mentioned above, the Company is looking to commence remedial work on four wells that have experienced comingling of oil and water sands. Remedial work will be performed on these wells with a small work-over rig, with additional perforations to be added in two of the four wells. This work is expected to improve the performance of these wells and add further to production.
As such, the company has perforated the Lower Cruse formation of the QUN 133 well, which experienced oil and water sands comingling in the Upper Cruse and will now assess performance under pump.
Executive Director Peter Landau commented:
"We are extremely pleased with the results of the ongoing drilling program in Trinidad, and particularly with the discovery of new oil reservoir. The QUN 135 well confirms once again that the development potential on Range's Trinidad blocks remains largely untapped. Once production testing of this new zone is complete, we will make a determination as to how best to develop the reservoir as part of our expanding portfolio of exploratory, development, and secondary recovery opportunities in Trinidad."
The Company will be providing further updates shortly with respect to the MD 248 well, finalisation of the sale of the Company's Texas interests, the finalisation of the GIG joint venture in Georgia, well performance in Guatemala and financing arrangements.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
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