Range Resources (RRL) found favour with investors on Wednesday, after its latest appraisal well in Texas came up trumps.
The AIM-listed company has discovered up to 130 feet of net oil and gas pay at its Russell Bevly #1 appraisal well, part of the North Chapman Ranch Joint Venture programme in Texas.
The appraisal well, which marks the first of its kind in the North Chapman Ranch field, was drilled to a total depth of 4,337 metres on budget and ahead of schedule, the company said in a statement.
Range, which owns a 20% interest in Russell Bevly #1, said the discovery was made in the Howell Hight formation after drilling pushed beyond the original 4,268 metre target.
The discovery exceeds the thickness of the earlier Smith #1 discovery well in the same area, it added.
Executive director Peter Landau said: "The Russell-Bevly #1 exceeds our expectations for the first appraisal well in the North Chapman Ranch field and sets the stage for additional development drilling across our acreage. As a casing point, the well was significantly under budgeted costs and ahead of schedule, indicating that the company and its joint venture partners are already capitalising on information acquired during the initial test."
The US-focused company went onto say that Russell Bevly #1, which was first spudded in early May, confirmed the structural and stratigraphic models across the northwestern flank of the field, which formed the basis for its recent reserve report.
"We will continue to look for wards to optimise drilling and completion operations in order to keeo downward pressure on finding and developing costs," Landau added.
Broker Old Park Lane said in a note: "We are confident of further positive news from Russell Bevly and we believe that Range will be able to upgrade a significant volume of its North Chapman Ranch reserves. This will provide an attractive degree of upside to our current valuation of 3p per share for Range's interest in North Chapman Ranch."
Investors had a great deal to say on events on the Interactive Investor Range Resources discussion board.
Loadsamoney added: "The company is fantastic, they are showing themselves to be truly gifted in adding company value quickly."
While pistolpete1986 summed up the general mood: "I'm not bothered by this instant day responses to news, what's more important is the continued strength of the fundamentals. The support now underpinning this share price is building and Range grows stronger every week."
Its shares initially rose over 5% before retreating to 2.5% at 5p.
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