North Chapman Ranch project, onshore Texas, USA

Introduction

In September 2009, Range acquired participation interests in the North Chapman Ranch project in Nueces County, Texas from Crest Resources Inc., a US-based  private  oil  and  gas  company.
This consisted of a 25% interest in the North Chapman Ranch project’s first well – Smith #1 – and 20% in all subsequent wells assuming the exercise of certain clawback provisions by joint venture partners based on the current success of the Smith #1 well.
The  North Chapman Ranch project  area  encompasses  approximately  1,680  acres  in  one  of  the  most  prolific  oil  and  gas  producing  trends  in  the  state  of Texas. 

North Chapman Ranch Background

The North  Chapman  Ranch  is  situated  within  the  prolific  Frio  producing  trend  just  north  of  the  Chapman  Ranch  in  the  Mobil  David  and Doughty  Fields. The  Mobil  David  field  was  discovered  in  1965  when  Mobil  drilled  the  Chapman  #1B  well and  completed  the  well  in  the  Laureles  Sand  (now  the  Howell  Hight).  To date,  an  estimated  250  billion  cubic  feet  of  natural  gas  and  more  than  10  million  barrels  of  oil  have  been  produced  from  this  field,  primarily  from  the  Anderson  sandstone.  Recently,  several  operators  in  the  area  have  been  successfully  developing  the  deeper  Howell  Hight  formation  with  some  wells  exhibiting  flow  rates  in  the  6‐9  million  cubic  feet  per  day  range.