Range Resources' (ASX: RRS) has received a BUY recommendation and a A$0.26 share price target, over three times the company's last traded share price of $0.077, from Old Park Lane Capital following success on the recently completed QUN 130 well on the Morne Diablo field.
The following is a copy of the report.
Range announced very impressive flow rates from the recently completed QUN 130 well on the Morne Diablo field.
The well probed the highly promising Lower Forest sands where the company is concentrating its current programme of drilling and testing activities on a further four wells.
- The QUN 130 well encountered a well developed pay zone at 1,210-1,290 feet and two additional pay zones at shallower horizons.
Subsequent production testing flowed 170 bopd on a 6/32" choke before being opened up to 8/32" to flow approximately 330 bopd. The well was choked back due to high pressures and production stabilised at an impressive 150 bopd.
- QUN 130 is very encouraging not only with regards to flow rates but the well also indicates a new extended Lower Forest oil zone below 1,000 feet.
This play is believed to transition into the productive Upper Cruse sands. The QUN 132 well, which reached a target depth of 1,000 feet, is now being deepened in order to target the productive sands that were encountered in QUN 130.
- QUN 134 was spudded over the weekend and is targeting the eastward extension of the Lower Forest trend.
QUN 131 has also been perforated and is now under test. Work was also completed on the perforation of the remaining Lower Forest sands in an older well, QUN 97 and the well initially produced over 60 bopd. QUN 97 is now on stabilised production of c.30 bopd.
- Range is now looking at the potential to re-enter a number of older wells in the proximity of the western end of the newer Lower Forest development wells in order to deepen them and test the Lower Forest sandstone trend that the company has recently identified.
- Range has now also spudded the MD 248 well using rig 8 to target the Middle Cruse sands at 4,000 feet in addition to the Lower Cruse horizon at target depth of 6,500 feet.
This is Range's first well to target both formations and a successful outcome could accelerate production growth from the Morne Diablo field substantially. The well is expected to take between six to eight weeks to drill.
With four drilling rigs in operation and two more expected to join the fray within two months, Range continues to gather momentum in Trinidad.
This progress could be accelerated further when the results of the MD 248 well, which is targeting considerably deeper formations, are known within the next eight weeks.
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