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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