Range remains on track in Republic of Georgia

Range Resources told investors it was on track to spud the Mukhiani well in the Republic of Georgia next month, as part of its two-well exploration drilling programme.

The oil and gas exploration and production company said the drilling rig and associated equipment to be used in the two-well exploration programme in Georgia this year recently arrived at the port of Poti and is now on site, with a scheduled spudding date of early July.

The well will target the Vani 3 prospect which has a best estimate of gross undiscovered oil in place of +115 million barrels, of which 46 million barrels is attributable to Range's 40% interest.

It is expected to reach a depth of 3,500 metres within 45-55 days.

Meanwhile, AIM-listed Range announced it was on track to begin its shallow target development drilling programme - to depths of 1,500 feet - in Trinidad, involving 15-20 wells to be completed before the end of the year.

The first well is expected to get underway around the end of July.

The company is also finalising plans for an initial well to test the deeper Herrera formation target with an indicative proposed spudding date in late third quarter/early fourth quarter.

And last but not least, the company has completed preparations in anticipation of the fracture stimulation of the Ross 3H horizontal well on the East Cotton Valley prospect, Texas.

The well bore has been cleaned out and perforated, with the frac tanks now being filled ahead of fracture stimulation operations.

If successful, the Ross 3H well is expected to launch a development programme of 15-20 additional horizontal wells, each of which could potentially recover between 200,000 and 500,000 barrels.

Having recently increased its interest to 21.75% of the field, Range said it was "well positioned to add significant oil production and cash flow to its growing US operations".

Analyst view

Barney Gray, director of research at Old Park Lane Capital, said: "Range's progress in Trinidad and Texas has de-risked business significantly. However, the company maintains exciting near-term exposure to highly attractive exploration upside in Georgia and also Puntland.

"Our valuation of 28.1p remains in place given that modest upgrades to our valuation of Range's Trinidad and Texas North Chapman Ranch assets, coupled with a weaker Sterling/USD exchange rate have offset an increase in the fully diluted equity."