Range Resources and Red Emperor begin drilling in Georgia
Oil and gas groups Range Resources (LON:RRL), Strait Oil and Gas and Red Emperor Resources (LON:RMP) have begun drilling the Mukhiani 1 well in the former Soviet state of Georgia. The well is targeting a prospect with a mean estimate of undiscovered oil in place of 115 million barrels. Of that, 46 million barrels is attributable to Range’s 40% interest and 23 million barrels is attributable to Red Emperor’s 20% interest. Drilling operations will run 24 hours a day for the next 45-55 days as the wells heads towards a target depth of around 3,500m. Shares in AIM listed Red Emperor edged up slightly to 27.38p while the price of Range stock was unmoved at 15.75p
For Range, the Mukhiani 1 well is the first of an anticipated 4-6 high impact exploration wells to be drilled in 2011 across its Georgian, Puntland, Texan and Trinidadian exploration assets. Executive director, Peter Landau commented: “This is a significant milestone for Range as it is our maiden well spud as an operator and the culmination of a significant amount of appraisal work completed by Strait’s operations team.”
Red Emperor’s director Greg Bandy, added: “This is a significant milestone for Red Emperor as it is our maiden well and the first of 3-4 high impact exploration wells expected to be drilled on the company's projects this year. After being admitted to AIM last month we are delighted to be able to provide the market with significant news flow so soon after listing.” In an interview with Stockopedia last month, Mr Bandy said a discovery in Georgia would “put many multiples on our share price”.
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Range Resources Limited is engaged in hydrocarbon exploration and development within Somalia, Republic of Georgia, Texas, Trinidad and Colombia. During the fiscal year ended June 30, 2012 (fiscal 2012) the Company commenced its development drilling program in a Trinidad holding company whose two wholly owned subsidiaries hold production licenses for three blocks in producing onshore oilfields in Trinidad. During fiscal 2012, the Company spudded the historic Shabeel 1 well in the Dharoor Valley. During fiscal 2012, the Company, along with its joint venture partners, spudded the first exploration well- Mukhiani 1, on the Vani 3 Prospect on Block Via. The second (Shabeel North) of two historical exploration wells in Puntland was completed subsequent to the fiscal year end June 30, 2012. On July 1, 2011, the Company acquired 100% of West Indies Exploration Company Ltd and Drilling International Service and Supply Ltd thru SOCA Petroleum Ltd. more »
Red Emperor Resources NL is an Australia-based resource and oil and gas exploration company. During the fiscal year ended June 30, 2012 (fiscal 2012), the Company focused on its oil and gas exploration joint venture assets and completed its farm-in to the Puntland and Georgian Projects. In Puntland, Red Emperor holds a 20% working interest in two oil and gas exploration licenses encompassing the prospective Dharoor and Nugaal valleys. In the Republic of Georgia, Red Emperor has a 20% working interest in onshore oil and gas exploration blocks VIa and VIb, covering approx. 6,500 square kilometer. During fiscal 2012, the initial exploration well was drilled, the Mukhiani 1 on the Vani 3 Prospect on Block Via. During fiscal 2012, the Company completed its earn-in obligations acquire a 20% farm-in interest in the Puntland oil and gas projects and a 20% interest in the Georgian oil and gas projects. During fiscal 2012, the Company also relinquished its interest in the Jillewara Project. more »
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Georgia update for Range just out on ASX.
http://www.asx.com.au/asxpdf/20120509/pdf/4264tw14l1vgwf.pdf
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