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Range Resources Encouraged By Oil Flow From Possible New Productive Oil Zone In Trinidad

Range Resources (ASX: RRS) is encouraged by indications of a new productive oil zone below the main Upper Cruse sands after producing oil at rates of up 330 barrels per day from a well on its Morne Diablo license in Trinidad.

The oil flows from the QUN 130 well were choked back to a stabilised rate of about 150 barrels per day (bpd) due to high pressures.

QUN 130 had intersected a well‐developed likely oil pay zone from 1,210 feet to 1,290 feet along with a secondary likely oil pay zones from 1,080 feet to 1,140 feet.

These zones and oil flow indicate that there is a new extended Lower Forest oil zone below the 1,000 feet level that has been the focus of development to date. This may also transition into the productive Upper Cruse sands.

In addition, the well showed higher than expected pressure for these depths resulting in encouraging production rates.

As a result of this, Range has decided to deepen its QUN 132 well to target the deeper Lower Forest sands while the QUN 134 well that was spud over the weekend is targeting the eastward extension of the Lower Forest trend.

Work was also completed on the perforation of the remaining Lower Forest sands in the older QUN 97 well that is located on the western end of the newer Lower Forest wells. This well was placed into production and achieved initial oil production of more than 60bpd and stabilised at about 30 bpd.

Range is also looking at a number of other older wells located in close proximity to the western end of the newer Lower Forest development wells to determine the possibility of re‐entering and deepening them to test for the deeper Lower Forest sandstones recently identified.

Deeper targets

Range is currently drilling MD248 well that targets the deeper Middle and Lower Cruse formations down to a target depth of about 6,500 feet.

MD248 is the first well to utilise the company's Rig 8, which has the deepest operating capability in the fleet.

The rig will subsequently move on to test deeper objectives, including the prolific Herrera Formation.

Range now has 4 drilling rigs in operation on the Morne Diablo license and is extremely encouraged with its Trinidad projects. The Company is targeting to bring the remaining 2 rigs into operation within the next 1 to 2 months.

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