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Range Resources To Resume Testing Of Guatemala Oil Well

Range Resources (ASX:RRS, AIM:RRL) has advised that testing operations will resume at the Atzam-5 oil appraisal well in Guatemala, targeting the primary target C18 carbonate section.

The company has a 24% direct and indirect interest in the Atzam oil field.

This follows oil field services giant Schlumberger sourcing and delivering a larger 7 inch perforation gun to the well site.

The new perforation gun, which has been run in the hole on wireline, will enable more of the targeted carbonate sections to be opened up to the wellbore, to help evaluate the commercial flow rate potential of each zone.

Schlumberger will recommence testing on the C18 carbonate starting from around 3,500 feet and move up the wellbore to test the prospective sections located behind the production casing identified from the detailed log data.

Testing operations have now moved from the open hole section of the well below 3,600 feet where the lower C18 and C19 carbonates were tested during June, which produced hydrocarbon but not in commercial volumes required by the project partners

Log analysis, combined with the significant oil shows from multiple zones whilst drilling, detail the commercial potential in the well from the C13 carbonates down to the C18 carbonate structures delineated in the Atzam-5 well.

All these potential commercial pay zones will be perforated and tested as part of this ongoing program, until a zone produces at material commercial rates.

On success such a zone would then be put on production, like the C17 producing zone in Atzam-4 that continues to produce under natural reservoir pressure at approximately 170 barrels of oil per day.

Review of the Atzam-5 log data confirms the well has very similar reservoir characteristics to Atzam-4.

The full Schlumberger log dataset and associated drilling reports have been provided to the independent reservoir consultants Ralph Davis, who are currently preparing a detailed reserve report for the Atzam-5 well.

This data also helps confirm the extension of multiple carbonate reservoir sections across the Atzam structure drilled to date.

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