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Oil and gas news summary: Range Resources, Solo Oil, Tethys Petroleum, Silvermere Energy, US Oil and Gas, Genel Energy
Range Resources (LON:RRL, ASX:RRS) and Red Emperor Resources (LON:RMP) were among the most followed stocks in the oil and gas sector this week after providing an update form their closely followed exploration campaign in Puntland.
The two companies said the Shabeel well in Puntland, Somalia has indicated oil but more test work was needed, while drilling in Trinidad had gone well so far.
The Shabeel well, which is being drilled by Horn Petroleum, was at a depth of 2703 metres and had just completed the setting of the 9 5/8" casing, Range said on Thursday.
At a depth of approximately 1660 metres, a 355 metre section of Upper Cretaceous sands and shales of the Tisje/Jesomma Formations exhibited both oil and gas showed and a potential pay zone of between 12 and 20 metres.
“Attempts to sample formation fluids using a wireline formation tester were not successful and the zone will require cased hole testing to confirm whether they areoil bearing,” Range said.
At a depth of 2015 metres, a thick section of tight limestone and shales was encountered and extended to the present depth of 2703 meters, which is believed to correspond to the Upper Cretaceous Gumburo Formation, Range said.
The firm added that the forward plan with Shabeel will be to drill ahead to the originally planned depth of 3800 metres to evaluate the primary and secondary reservoir targets in the Lower Cretaceous and Jurassic intervals equivalent to the main productive section seen in the analogous fields in Yemen.
Separately Range Resources said that three rigs are now operational in its 21 well drilling programme on its Morne Diablo acreage in Trinidad.
A fourth rig is set to join operations this month and will target target the Middle to Lower Cruse sands to a depth of circa 6,500ft which have the potential to produce in the range of 150-300 bopd.
Work is also nearing completion on the reprocessing of its 3D seismic database in Trinidad, Range added, which will enable it to target deeper drill targets more accurately.
Barney Gray, an analyst at Old Park Lane Capital, said Range is making good progress on its programme in Trinidad.
“A string of successful well results in the shallow formations indicates that production will exceed 1,000 bopd within the next few weeks.”
