Range Resources shares lift off after oil discovery

Shares in dual-listed oil and gas exploration company Range Resources rose sharply on Wednesday morning after the company reported that probable reserves of 2.3m barrels of oil had been independently estimated at its Atzam site in Guatamala.Range Resources reported that Citation Resources, a company in which Range Resuorces has a 19.9% stake, and Latin American Resources had commissioned an independent reserves report based on the results of logging and analytical work conducted by Schlumberger. The report, which was written by Ralph E Davis and Associates (RED), concluded that there was up to 20 material oil shows in the Atzam well, with eight zones recommended by RED to be tested for commerciality.The probable reserves estimate excluded contributions from two areas, known as the C18 and C19 sections, due to minimal log data.Range Resources predicted estimated flow rates of 300-to-400 barrels per day with an 85-to-90% oil cut from the Lower C17 and Upper C18 sections. The company's share price was up 21.04% to 5.81p at 09:09 on Wednesday.MF