Range Resources reported continued drilling success at its Morne Diabloe concession onshore Trinidad as it ramps up its reserves production drilling program there.

Range – whose stock is traded on London's Alternative Investment Market – reported that following successful logging and completion of the QUN118ST well, initial production testing has seen the well producing at a rate of up to 102 barrels of oil per day on a 5/32-inch choke under natural pressure from the shallow Forrest formation and has stabilized at approximately 84 bopd.

The company said it is extremely pleased with the initial production results of the QUN118ST well as it follows on from the recently completed and producing QUN116ST, which is currently producing circa 30 bopd under natural pressure (at the top of the target range of shallow 1000 ft wells of 15-30 bopd) with an aim to put the well on pump, after further decline, to increase the production rate to an estimated 50 bopd.

As previously announced, the QUN 117 well encountered both the Lower Forest and Upper Cruse objectives, which Range believes may extend eastward of the existing wells, and confirmed the company's predictions that the current well program would extend existing fields. The Upper Cruse section was placed on production with initial production rates of 81 bopd under natural pressure.

Like the QUN 116ST well, this well will be optimized and likely placed on pump, and is forecast to produce upwards of 50 bopd, while still maintaining the Lower Forest zone potential which is planned to be exploited at a later date.

Rig 2 has moved to the QUN 119 location and is drilling ahead at 1,100 feet with a target depth of 2,400 feet and targeting the Upper Cruse and Lower Forest Sands. Well logs have been taken over the Lower Forest interval and are indicating approximately 280 feet of good oil sands with 100 feet of these sands displaying higher quality potential for better than expected flow rates. These results are extremely encouraging as indications are that the multi-zone producing trends previously encountered in the QUN 117 well appear to continue.

Rig 5 has been prepared to join the current operations and will be targeting its first well, QUN 120, for the Lower Forest Sands in the coming weeks.

Rig 8 currently awaits regulatory inspection which is expected shortly and will be targeting the deeper Middle and Lower Cruse formations, while Rig 1 has been awaiting replacement drill string, expected to be received shortly, at which point in time Range will have four fully operational drilling rigs rapidly advancing the company's current drilling program on Morne Diablo.

Exploratory drilling for deeper targets is programmed for 2012, following reprocessing and interpretation of the Company's 3D seismic database, which is scheduled to be completed early / mid February.

The company also announced that its joint venture on the North Chapman Ranch in Texas has run 9 5/8-inch casing on the Albrecht #1 well and is drilling ahead at 11,302 feet, just above the Anderson Formation, with a proposed target depth of 14,500 feet. If productive, the Anderson Formation could add significant reserves to those of the Howell Hight Formation, the primary field pay at North Chapman Ranch.

Completion work continued on the Smith #2 well with the perforation of the lowest zone, or "E" sand. Immediately following perforation, 5,500 pounds per square inch of pressure was recorded at the surface, indicating virgin reservoir pressure at the Albrecht location. The well is scheduled for fracture stimulation early next month, along with first production and sales.

The Albrecht #1 appraisal well marks another milestone in the company's onshore Texas drilling program, as if successful, it is anticipated to prove up reserves in the South East portion of the North Chapman Ranch license area, and support a re-classification of current Possible (P3) reserves into the Probable (P2) and Proved (P1) categories.

Following on from the Albrecht #1 well, the joint venture has the option to continue with the development of the field with a possible four-well program in 2012 under discussion among the joint venture partners.

On the East Texas Cotton Valley prospect, operator Crest Resources has received approval from the partners for fracture stimulation of the Ross 3H Horizontal Well, and is in the process of scheduling the frac work and subsequent testing this quarter, which is expected to confirm commerciality of this shallow oil field.

Tags: Range Resources Corporation