AIM-listed oil and gas group Range Resources has assured investors that the Shabeel-1 well currently being drilled in Puntland, Somalia, has not yet reached target depths, despite 'negative statements' being circulated.
The company said that it still plans to drill to the originally planned depth of 3,800m to evaluated the primary and secondary reservoir targets in the Lower Cretaceous and Jurassic intervals equivalent to the main productive section seen in the analogous fields in Yemen.
The joint venture operator Horn Petroleum had so far drilled to 2,953m but has not yet reached these reservoir targets. Range Executive Director Peter Landau has assured that there is still some drilling to be done.
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Shares were up 4.88% on Wednesday afternoon. However, including today's rise, the stock is still 12% down on the week and 32% lower over the last month. Red Emperor Resources, the other joint venture partner, has also suffered a sell-off as of late but was trading nearly 13% higher today.
"We are very pleased with the progress of the drilling programme and the results seen to date," Range's Managing Director Greg Bandy said last week.
"Confirming an active petroleum system is particularly significant, especially given that we are yet to reach the primary objectives of the well. We look forward to updating the market as we get closer to target depth," he said.
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