(MENAFN- ProactiveInvestors)Range Energy Resources (CNSX:RGO) said on Tuesday that Gas Plus Khalakan (GPK) the sole contractor of the Khalakan PSC in the Kurdistan Region of Iraq has successfully tested the Shewashan-2 development well and found it to be very high quality. In a statement GPK said the deviated Shewashan-2 well was spudded on 1 October 2015 and drilled to a TD of 2768 m MD in the Cretaceous Qamchuga reservoir at a gross cost of $19.5m. According to GPK on open hole test from 2439m to 2768m the well flowed with very low drawdown at a maximum rate of 4400 barrels of oil per day (bopd) and with a BS&W of less than 1%. The oil flow is very high quality light 47 degree API oil flowing from the Cretaceous fractured carbonate reservoirs (Shiranish Kometan and Qamchuga). Shewashan-2 is the second well in the Phase 1 approved field development plan and follows the successful 2014 Shewashan-1 well which produced light 46 degree API oil from the Cretaceous at a maximum rate of 2850 bopd. GPK stated that Shewashan-2 has now been completed is ready for production and will contribute to the Phase 1 production target of 10000 barrels of oil per day (bopd) by year end 2016. Estimated annual production for 2016 is 1.9 million barrels. GPK will immediately proceed with the recompletion of the Shewashan-1 well as a deviated producing well. Phase 1 production will be processed through a 10000 bopd Early Production Facility (EPF) with total storage capacity of 30000 bbls and water handling of up to 3000 bwpd. Furthermore GPK anticipates that total Phase 1 Capital investment budget is $77mln gross. "This was a critical milestone for the Shewashan field development plan. Additionally the Shewashan-2 production rates are encouraging for future development efforts and the production capacity of the field" said Toufic Chahine Chairman of Range Energy. Range Energy is a 24.95% indirect shareholder of GPK through its ownership of 49.9% of the shares of New Age Alzarooni 2. A further 50% of the shares of GPK are owned by New Age Alzarooni 2.
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