Good news for Puntland Oil Exploitation: News as well as PICS

[General Duke]

Range acquires interest in a strategic US asset.

 

Highlights:

• Range acquires a 25% interest in well known Texas oil and gas field, with drilling at project already underway,

• Low entry cost - To fund drilling of Smith #1 Well (AUD$1m) and in the event of a discovery fund costs to production (AUD$350,000),

• Significant infrastructure in place and timing to first sales will be approximately three months upon a discovery being made, with an estimated payback period of 8 – 10 months,

 

Australian based oil and gas company Range Resources Limited (ASX:RRS, AIM: RRL) (“Range” or “the Company”) continues to enhance its international oil and gas portfolio, reaching agreement with U.S. based private oil and gas company Crest Resources Inc ("Crest") to acquire a 25% working interest in the North Chapman Ranch project located 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.

 

Smith #1 Well – Currently Drilling

 

Range will participate in the Smith #1 well, which has already commenced drilling and is expected to confirm an apparent discovery made by Crest and its partners earlier this year. The well is currently at 8,000 feet with a target depth of 14,000 feet. Range anticipates target depth being achieved in the next three weeks and will provide updates to the market as they are received.

 

North Chapman Ranch Background

 

North Chapman Ranch is situated within the prolific Frio producing trend just north of the Chapman Ranch in the Mobil David and Doughty Fields. The Mobil David field was discovered in 1965 when Mobil drilled the Chapman #1B and completed the well in the Laureles Sand (now the Howell Hight). Since then, an estimated 250 billion cubic feet of natural gas and more than 10 million barrels of oil have been produced from this field, primarily from the Anderson sandstone. Recently, several operators in the area have been successfully developing the deeper Howell Hight formation, with some wells exhibiting flow rates in the 6-9 million cubic feet per day range. The currently drilling Smith #1 well is programmed to test the Howell Hight formation in a location near that of the recently drilled Zdansky #1 well. Crest was unable to complete the Zdansky well due to hole problems.

 

If successful, the Smith #1 well could trigger significant oil and gas production and development drilling with very attractive economics, at a time when exploration and development costs in the U.S. have dropped dramatically. In addition, the favorable operating and regulatory environment in Texas serves to mitigate perceived political risk associated with Range's other international exploration projects.

 

Benefits for Range

 

The cost for Range is AUD$1m which includes the cost of the current well. In the event of a discovery, costs to production will be approximately AUD$350,000. The low cost relates to the significant infrastructure (eg. pipelines) already in place. Timing to first sales will be approximately three months upon a discovery being made with an estimated payback period of 8 – 10 months. With winter approaching in the US, timing may be expedited with increased gas prices. Range can limit its exposure to the Smith #1 well or continue with its participation interest in an exploration area which is targeting a minimum of 80 BCF of gas (undiscovered gas in place).

[General Duke]

Moving Forward

 

With Range anticipating that Africa Oil and the Puntland Government will agree to the proposed drilling programme on the onshore Puntland oil & gas blocks shortly, the recently acquired Georgian blocks being prepared for a seismic survey and the Smith #1 well about half way to target depth, the Company is excited with its portfolio and the activity planned for the coming months.

 

The Company received over subscriptions with its latest placement and will accept a further AUD$2.2m as per the attached Appendix 3B.

 

Ends

 

Download the full ASX Announcement by clicking here

 

For additional information please contact:

 

Peter Landau

Range Resources

Tel : +61 (8) 8 9488 5220

Em: plandau@rangeresourc es.com.au

 

 

David Tasker

Professional Public Relations

+61 8 9388 0944

david.tasker@ppr.com .au

[General Duke]

During 2008, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometres of good quality 2D seismic

(comprised of 15 grid lines) was completed. The Company has combined 555 kilometres of previously acquired data into the seismic database and is currently being mapped to finalize exploration well locations.

 

Exploration Drilling

 

The Company has assigned a full time Drilling Manager to commence efforts on the procurement and mobilization of a drill rig for the proposed Somalia exploration drilling campaign.

source

[General Duke]

Oil exploration 2008

 

 

[General Duke]

 

[GAAROODI]

looool, all i see is three pick ups, ...... no oil yet !!!

 

like i said, show me the oil....!!!

 

looool, all i see is hype,lights and three pick ups, land that is being drilled for oil has to be larger than that.

 

looool .

[General Duke]

^^^Adeer that was exploration phase, all you had to do is read and not get angry.

 

During 2008, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometres of good quality 2D seismic

[Pilgrim]

Here's a picture of Crest's camp and rig in Texas. As soon as Farole and AOC can finalize the drilling schedule, we should see something similar in Dharoor or Nugal.

 

http://mail.google.c om/mail/?ui=2&ik=ec6 87a888b&view=att&th= 123e03338f24ec32&att id=0.1&disp=inline&r ealattid=0.1&zw

[FARIID]

Drill Drilltake the black goldout yaa faroole

[N.O.R.F]

Pilgrim, any idea who is insuring them and what the policy covers?

[Pilgrim]

Sorry, can't help but if I find out, I'll let you know!

[Libaax-Sankataabte]

Drill, baby, drill!

[Jacaylbaro]

waar ka daa ,, sidanay amaan ku haysataaaye yaan looga darine ,,,

[Eng.Cadde]

Is it me or this guy is obsessed with bantuland?

[Cowke]