Rango Energy Inc. (OTC: RAGO) reports that planning and cost estimation is underway for our second well on the Kettleman Middle Dome (KMD) project in California.
The second well on the structure is slated to begin in mid-December 2013.
The KMD project covers the central anticlinal 'dome' structure which is part of a large three-part northwest-southeast trending anticline which hosts a billion barrel oilfield. The two other 'domes' are the Lost Hills field in the south dome, and the KMD which is located just to the northwest of the KMD site.
The KMD project area is over 11,000 acres in size and is underlain by several prolific formations which include the Monterey Shale, the Temblor Sands, the Vaqueros sandstone, the McAdams sandstone and the Kreyenhagen shale. Currently Occidental Petroleum has targeted the Kreyenhagen shale for production in an area directly adjacent to the KMD project.
The McAdams sandstone will be the target of the second well at the KMD project area. Formational depths are well understood from highly detailed 3-D seismic surveys which cover over 75% of the project. The McAdams has been a prolific producer in the adjacent Coalinga field and Kettleman North Dome, with over 300 wells producing at an average of over 2.7 million barrels equivalent (MMBOE) per well. Former McAdams wells have had some of the highest initial production (IP) rates within the continental U.S.
"We are pleased to be furthering the work on the Kettleman Middle Dome, which we know to have several formations all with tremendous oil and gas potential. We have had some positive engineering analysis of the first well and we are proceeding with our plans for the next well," Harp Sangha, Rango Energyv CEO, said in the release.
Rango Energy Inc. engages in the acquisition, exploration, and development of oil and natural gas properties in North America. The company is based in Vivian, La.