Shares in Range Resources (LON:RRL) marched ahead by 11.7% to 6.4p in early trading today after the oil and gas exploration and production group released the details of an updated reserves report for its North Chapman Field in Texas, US. The assessment by consultants from Lonquist & Co increased the proved resources attributable to Range by 67% to 12.7 billion cubic feet of gas and 1.9m barrels of oil and gas liquids. Overall, the total commercial recoverable reserves in the P1, P2 and P3 categories attributable to Range increased to 48.1bcf of gas (up from 45bcf) and 7.2m barrels of oil and condensates (up from 6.5m barrels). As a result, an independent (PV10) discounted cashflow valuation of Range's net interest in North Chapman increased to US$248m from US$226m.

The latest reserves report follows the successful drilling and completion of the Russell-Bevly #1 appraisal well earlier this year. That well confirmed the company's structural and stratigraphic models and established additional proved oil and gas reserves across the northwest flank of the closure. The well averaged 1.3m cubic feet of gas per day and 104 barrels of oil per day during September from just 11ft of perforations in one of four identified pay zones totalling roughly 130ft in thickness.

Range has a 25% interest in the first well at North Chapman, Smith #1 and a 20% stake in Russell-Bevly #1 and future wells assuming the exercise of certain clawback provisions by joint venture partners occurs. Plans for the next well at North Chapman Ranch are currently being finalised. For details about Range’s plans in Texas, click here to read a Stockopedia interview with executive director, Anthony Eastman.

Elsewhere, Range said that drilling was set to get underway later this month on the first horizontal well in the East Clarksville oil field, which lies on the East Texas Cotton Valley Prospect. Range holds a 13.56% interest in the Ross 3H horizontal well, which will be drilled to 8,200ft measured depth, with a horizontal section approximately 2,500ft in length. The well will test the Cotton Valley formation and offset the Morris 2H well that previously found good quality oil and reservoir rock approximately 500 ft (152m) to the west. If successful, the Ross 3H could trigger an oil development drilling program of 20-25 wells, with estimated recoveries of between 200,000…

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