Oil firms Range Resources and Red Emperor are pressing on with their plans to move the drilling rig on to the next proposed well site in the Republic of Georgia, despite a reassessment of seismic data on the suspended Mukhiani-1 well suggesting that a side-track well there could be worth a punt.
The decision came after the results indicated that the well encountered previously unrecognised faults which led to possible basement being encountered far earlier than predicted.
Although the firms had the option to side-track, they decided that, based on its exploration schedule and the availability of the drilling rig, it will continue on the next proposed Kursebi well.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In Puntland, where the two companies are also workign together, Horn Petroleum is currently in final preparations to begin a two well drilling campaign in the Dharoor Valley Block, with the first well (Shabeel-1) planned to begin drilling in December 2011.
Horn has completed sourcing drilling related materials and the majority of materials are on site or on route to the drilling site.
Range Resources said that at the North Chapman Ranch in Texas, the Smith #2 well has performed in line with company expectations, with good hydrocarbons shows. Upon the successful completion of the well, the rig will move directly to the Albrecht #1 well site.
The share price of Range rose 10.75% to 8.86p by 13:45 while Red Empreror moved imperiously up to 14.25p, up 2p on the day.
NR
-
Ticket scam warning ahead of major summer eventsA total of £6.7 million was lost to ticket scams last year. With the Taylor Swift Eras tour and Glastonbury Festival coming up, we explain how to stay safe when buying tickets
-
GDP: UK economy exits recessionThe latest GDP figures reveal the UK economy grew by 0.6% in the first three months of the year, officially exiting recession. We look at what households and investors can expect next.
