Second Georgian well for Range and Red Emperor

Range Resources (RRL) and its joint venture partner, Red Emperor Resources (RMP), have started site construction for the spudding of a second exploration well in Georgia.

The Namakhvani well, also known as the Kursebi 6 prospect, is expected to spud in "early to mid February", with a target depth of about 3,500 metres.

The Namakhvani well is one of three Kursebi prospects previously identified.

"Unexpected geological sequences" were encountered with the first well, resulting in Range employing technical consultants, NTD Energy, to perform a fresh review of all of the seismic and geological data across the three Kursebi prospects.

"The Kursebi 6 prospect was identified as the most robust prospect with a more clearly-defined structure and indications of a significantly thicker Jurassic section, increasing chances of encountering more reservoir and mature source rocks," the companies said.

This prospect is estimated to hold mean reserves of 99.2 million barrels of oil. Range has a 40% interest in the prospect. The corresponding figure for Red Emperor is 20%.

Georgia is also home to onshore blocks VIa and VIb, in which Range has a 40% farm-in interest and Red Emperor a 20% working interest. The blocks, which cover approximately 7,000 square kilometres, are estimated to contain two billion barrels of undiscovered oil-in-place. The first of two exploration wells, Mukhiani-1, was spudded in July in 2011.

Shares in both companies moved higher on Monday.