• Introduction
• Smith #2 Well
• Albrecht #1 Well
• Smith #1 well (25% WI)
• Russell-Bevly #1 well (20% WI)

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.

Following commerical discovery on the Smith #1 Well in December 2009 a multi-well programme was initiated.

Multi-well programme

North Chapman Ranch Background

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.

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.

Drilling continues at 13,800ft on the Smith #2 well with a proposed target depth of 14,500 ft. Good hydrocarbons shows have been recorded in the objective Howell Hight section which will be flow tested following TD. Upon the successful completion of the Smith #2 well, the rig is will move directly to the Albrecht #1 well site, with site construction having been recently completed in readiness to receive the rig. At this stage the Smith #2 has performed in line with Company expectations for the development well.

With the Smith #1 and Russell-Bevly wells located in the north-west corner of the license area, assuming success on the Albrecht well alone, the Company would expect a significant re-classification of the current P2 & P3 (Probable & Possible) reserves into the P1 (Proved) and P2 (Probable) categories.

Upon the successful completion of the Smith #2 well, the rig is will move directly to the Albrecht #1 well site, with site construction having been recently completed in readiness to receive the rig.

The Albrecht well is intended to more fully appraise the North Chapman Ranch field, while testing additonal, shallower objectives.