Range Energy Resources Inc (CNSX:RGO) updated on its Shewashan field in the Kurdistan region of Iraq, which is currently producing 1,500 bbl/d (barrels per day).
The update comes from Gas Plus Khalakan (GPK), the sole contractor of the Khalakan production-sharing contract.
An early production facility at Shewashan started operating in June this year.
A fourth well at Shewashan field was completed as a deviated producer and put on production at a rate of 500 bbl/d (barrels a day) and is connected to the early production facilities, it revealed.
The Shewashan No. 2 well, which was previously producing 250 bbl/d from the Shiranish reservoir, is currently being sidetracked after reservoiur damage and is expected to be enhanced.
The Shewashan No 3 well has been producing at 500 bopd (barrels of oil per day) from the Kometan formation but plans are now being made to return the production to the Qamchuqa reservoir.
The Shewashan No. 1 well has been sidetracked and a new 4.5 inch liner installed. It is now producing 750 bbls/day, Range said.
Due to various delaying factors, total oil production for the first half of 2017 was 292,861 barrels, which was "significantly" below what is required to meet forecast annual production targets.
So far in total, the field has produced 1.25mln barrels and the stabilisation of Brent crude prices will allow GPK to operate profitably once the ongoing work-overs have been completed.
Range has a 24.95% indirect interest in GPK through its ownership of 49.9% of New Age Alzarooni 2 Limited (NAAZ2).
NAAZ2 owns 50% of GPK.
The gross remaining budget for the rest of the yera is around $10mln of which a portion will be offset by revenues associated with production. Range's net share of this will be about $2.5 million.
