AIM and ASX listed oil and gas group Range Resources (LON:RRL) (ASX:RRS), reported this morning that sales had begun from the second well on its licence at the North Chapman Ranch in Texas, US, the Russell Bevly Unit #1. Less than seven weeks after production casing was set in the well and the drilling rig released, the Russell Bevly was turned to sales at approximately 1,000 Mcf of natural gas and 90 barrels of oil per day from just one of four identified pay zones. The first zone placed in production represents just 11 ft. of perforated Howell Hight formation within total net pay thickness of approximately 130 feet.

Like the first well on the project, Smith #1, Range said that it expected the new well to flow naturally for a number of months before it is shut in and a completion rig moved into place. Once the completion rig is in place, the well will be fracture stimulated and additional pay zones added to boost rate. Hydraulically fracturing the reservoirs creates additional permeability paths from the reservoir to the well bore, increasing production rates from the various pay zones, which in turn accelerates payout while improving reserve recovery and overall economics.

Range has a 25% stake in Smith #1 and a 20% stake in Russell Bevly Unit #1 and is now expected to turn its attention towards drilling a third appraisal well on the North West flank of the reservoir at North Chapman. An updated reserves and valuation report is also now likely to be commissioned from independent consultants, Lonquist.

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