Range Energy gives Shewashan Operations Update

Shewashan #3:
The Shewashan #3 well has been producing at 500 bopd from the Kometan formation but plans are now being made to return the production to the Qamchuqa reservoir utilizing the selective completion already installed in the well.

Oil Sales:

Total oil production for H1 2017 was 292,861 barrels. This amount is significantly below that required to meet forecast annual production targets. The contributory factors were delays associated with drilling Shewashan #4 and the recompletion of Shewashan #1 and #2, trucking and logistics challenges, and water production rates that limited oil production rates until the new early production facilities were installed and completed in June.

In total, cumulative field production to date exceeds 1,250,000 bbls and all invoiced amounts for oil sales have been received. Current total field production is 1,500 bbl/d. The stabilization of Brent oil prices will allow GPK to operate profitably once the ongoing work overs have been completed.

Budget:

The gross remaining budget for the balance of the year is approximately $10 million of which a portion will be offset by revenues associated with production. Range’s net share of this budget will be approximately $2.5 million.

The Early Production Facility at Shewashan started operation in June 2017.

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).

(Source: Range Energy Resources)

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