Range Energy Resources Inc. ("Range" or the "Company") (CSE:RGO)(FRANKFURT:YGK) announced today that, Gas Plus Khalakan ("GPK"), the sole contractor of the Khalakan PSC in the Kurdistan Region of Iraq, issued an operations update regarding the Shewashan field.
GPK, received a report from DeGolyer and MacNaughton (D&M) providing a revised year end 2016 reserve audit for the Shewashan field which has led to a material increase in the estimated reserves and net present worth of the Shewashan oil field.
The D&M 2016 reserve report estimate of Shewashan's 2P gross reserves is 113.8 Mbbl, representing a 53% increase in 2P gross reserves above the 2015 D&M reserve audit. The increase to GPK's reserves is attributed to the larger area mapped following seismic reprocessing.
Operations Update: 1st Quarter 2017:
The 4th well drilled on the Shewashan field, Shewashan #4, continues to drill forward in the cretaceous reservoir. The well will now be completed as a deviated producer in the cretaceous reservoir. This well is to increase the near term production of the Shewashan field.
Production of the Shewashan field has been limited to the 2,000 bbl/d level during the first quarter 2017 as a result of ongoing selective well testing and a water isolation program. The downhole modifications of the Shewashan #3 well have successfully eliminated the earlier water production and maintained oil production at approximately 1,500 bbl/day. Further work is to be done with the intent of increasing oil production.
The Shewashan #2 well is currently on restricted production as the water isolation program is ongoing and the well will be recompleted. The Shewashan #2 modifications are to be completed in the second quarter 2017.
The Shewashan #1 well remains offline. The well is expected to be recompleted upon the conclusion of the Early Production Facility (EPF) construction and the Shewashan #2 well modifications.
The Company continues to supply the Kurdistan Region's refining market and during the first quarter 2017 oil production averaged 2,097 bbl/d.
The recent stability of Brent oil prices has allowed GPK to operate profitably.
Readers are encouraged to read the full GPK Operations Update which can be found at the NewAge website. http://www.newafricanglobalenergy.com/Related_News.
Mr. Toufic Chahine, Chairman of Range, commented: "The substantial increase in the Shewashan field's 2P reserves and present net worth help demonstrate the signficant value of the Shewashan field and we are pleased to see this growth over a relatively short period of time. We commend GPK's efforts to enhance the productivity of the Shewashan field and the Range board is committed to allow the company to continue the development of this oil field. With three wells successfully drilled it is still early in the fields development cycle and as we learn more about the underlying reservoir geology, we look forward to additional news from the Shewashan -4 drilling results."
The Company is a 24.95% indirect shareholder of GPK through its ownership of 49.9% of the shares of New Age
Alzarooni 2 Limited ("NAAZ2"). NAAZ2 owns 50% of the shares of GPK.
Production rates and quantities, reserves and resources, both projected and historical are provided in this release according to disclosures provided by GPK. Range expects GPK to utilize reporting procedures that are in compliance with the COGE Handbook standards and NI 51-101 (National Instrument Standards of Disclosure for Oil and Gas Activities).
Range Energy Resources Inc. is a publicly listed company currently trading under the symbol "RGO" on the Canadian Securities Exchange (CSE).
Range maintains a 24.95% economic interest in the Shewashan Field, a proven oil discovery in the Kurdistan region of Northern Iraq (“KRG”). The KRG Ministry of Natural Resources has approved the Shewashan Field Development Plan which is being implemented by Range’s co-ventures in the block. The Field Development Plan includes the implementation of multiple production wells and top side processing and storage facilities for up to 10,000 bopd production and 30,000 bbl of storage.
Range has been fortunate to receive funding from several institutional shareholders through the exploration phase and is pleased to have commenced development of the infrastructure required to produce oil in the KRG domestic and international markets.
SOURCE: Range Energy Resources Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.