In January 2010 we wrote our initial Value Proposition for Range Resources (LON:RRL ASX:RRS). Our focus at that time was on the transformational news that drilling at the North Chapman Ranch oil & gas prospect in Texas had led to a commercial oil and gas find.

So six months on, we thought it would be timely to rework our original Value Proposition, so as to take in all the developments that have happened since then. The Range Resources portfolio now includes:

 

 

1. a 25% stake in a Texan well from which drilling has identified a commercial oil and gas find and production of oil and gas has commenced.  Also a 20-25% stake in future wells drilled on the Texan licences, which were supplemented with additional acreage in late 2009;

2. a 13.65% stake in east Texas Cotton Valley with an existing shallow oil reservoir potentially containing up to 4-6 million barrels of oil and where an additional 20 well drill programme is planned;

3. a 10% interest in three Trinidad licences where existing production is scheduled for material increase and where there is significant potential to expand the known reserves;

4. a 50% interest in Georgian Oil & Gas licences together with Strait Oil & Gas, on which the company completed a 410km seismic acquisition operation in March 2010. This has been followed up by interpretation and processing of the seismic data, targeting substantial oil prospects. Initial results point to a number of drillable targets;

5. a 20% interest in Puntland, Northern Somalia onshore oil licences estimated to contain up to 20 billion barrels.  In conjunction with operator Africa Oil, drilling on  the Dharoor prospect is planned for Q4 2010 and on the Nugaal prospect shortly after; 

6. active engagement re Puntland offshore oil/gas exploration licences with plans to secure a farm in partner to help fund the exploration programme going forward.

Texas (USA) – Oil and Gas Discovery:

After reaching target depth with the Smith #1 well in the North Chapman ranch area of Texas in November the markets had to wait until 21 December 2009 before receiving confirmation of a commercial oil and gas discovery.

Initial test results showed flow rates of 2.4million cubic feet of gas and 191 barrels of oil per day. Sales of gas and…

Unlock the rest of this article with a 14 day trial

Already have an account?
Login here