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Range Resources acquires Cotton Valley interest, plans 20 well program

In June 2010, West Perth, Australia-based Range Resources acquired a 13.56% interest in roughly 1,570 gross acres in the Cotton Valley located in Red River County, Texas, for US$254,000.

Development of the shallow oil reservoir in the Cotton Valley formation is expected to begin in July with the drilling of a horizontal appraisal well in the field, where gross recoverable reserves could of between 4 to 6 million barrels of oil.

If successful, Range will participate in a 20 well drilling program over the next five years. The company expects its share of total drilling costs to be $4.5 million spread over the life of the project.

With finding and development costs of less than $7.15 per barrel based on the lower end of reserve expectations, the economics are attractive to the company.

Weeks earlier, Old Park Lane Capital Plc (OPL) raised roughly A$10m for the company. This cash will be used to fund the group’s activities in Puntland, Texas and Georgia and will also enable Range to complete a further acquisition in the US.

Range Resources’ principal activity is directed towards finding and delineating natural resources in the oil, gas, and mineral sectors in Puntland, Somalia; the Republic of Georgia and onshore Texas, USA.

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