Range Resources Share News (RRL)

AIM-listed oil and gas peers Range Resources and Red Emperor Resources have announced that their jointly-owned Shabeel North well in Puntland, Somalia, has been spudded.The well, the second in the current drilling campaign, is operated by Canadian group Horn Petroleum which owns a 60% interest. Range and Red Emperor have a 20% stake each.It is targeting Upper Cretaceous Jesomma sands which had good oil and gas shows in the Shabeel-1 well 3.5km to the south. Analysis of Shabeel-1 showed a potential pay zone of up to 12-20 metres with an average porosity of 18-20%. "It is planned to bring the rig back to the Shabeel-1 location to test these sands to confirm their ability to flow oil once the drilling of the Shabeel North well is completed."The planned target depth of the second well is 2,400 metres and drilling is expected to take 45 to 60 days to complete."This is another very significant milestone in what has so far been a very positive drilling campaign. The fact that Shabeel-1 showed a strong presence of reservoir rock and hydrocarbons as well as a potential net commercial oil pay, gives a very good indication that this well will do the same," said Red Emperor's Managing Director Greg Bandy.Meanwhile, Horn's President and Chief Executive Officer David Grellman said: "The results of this well should help us confirm the extent of the petroleum system in the basin and, if successful, would be another step towards proving the economic potential of the basin."BC