New Range Resources Ltd.
TSX VENTURE : RGE

New Range Resources Ltd.

March 06, 2007 16:10 ET

New Range Announces Operations Update

CALGARY, ALBERTA--(CCNMatthews - March 6, 2007) - New Range Resources Ltd. (TSX VENTURE:RGE) ("New Range" or "the Company") announces that the gas well at Knopcik, Alberta and the oil and gas well at Pembina, Alberta, two successful wells in which it participated in late 2006, are both expected to be continuously on-stream in early April, 2007. Both wells are currently shut-in pending the completion of various production facilities. Once the Knopcik and Pembina wells are on-stream, the Company expects its daily production to increase from its current 53 BOE/day to approximately 275 BOE/day. As a precaution, the Knopcik well will operate at a reduced flow rate, subsequently, it will be allowed to produce at its maximum flow rate that is anticipated to increase New Range's daily production up to 325 BOE/day.

Knopcik, Alberta

The Knopcik 14-9-74-11W6 well was tied-in and was initially put on production in December, 2006. Due to hydrate blockage in a non-operated section of pipeline, production was limited in December, 2006. Once the hydrate blockage was resolved, Knopcik re-commenced production in early January, 2007, producing a total of 57,475 mmcf (17,242 mmcf net), averaging 1,854 mcf/day (556 mcf/day net) of gas during January, with production during the last week of January averaging 3.55 mmcf/day (1.065 mmcf/day net). Knopcik was shut-in on February 1, 2007 as the H2S level had increased from 6.3% to 7.8% which was in excess of the pipeline specifications.

Design and construction has commenced on a sour gas dilution facility to bring the H2S level back in line with pipeline specifications. The facility should be completed by early April, 2007. At that time, Knopcik is expected to be put on production at a restricted rate of 3 mmscf/day (900 mcf/day net).

New Range has a 30% working interest in the non-operated Knopcik well.

Pembina, Alberta

In February 2007 New Range moved a temporary facility on location at Pembina 100/2-12-47-9W5/00 to further test the productivity of the well. During the nine day test, the Pembina well flow tested oil and gas without pumping equipment as follows:



---------------------------------------------------------------------------
Hours on Wellhead Oil rate Gas rate
Day production Pressure (psi) (Bbl/day) (mcf/day)
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1 24 300 157 410,000
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2 24 250 147 455,000
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3 24 260 133 455,000
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4 24 270 95 440,000
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5 24 260 74 460,000
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6 24 260 70 465,000
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7 24 250 48 420,000
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8 24 250 50 420,000
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9 22 230 45 419,000
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Design and construction of a single well oil battery and a 400 metre natural gas pipeline has commenced with an expected completion date of early April, 2007.

New Range is the operator of the Pembina well and has a 64% working interest.

About New Range

New Range Resources Ltd. is a Calgary based emerging oil and natural gas company, engaged in the exploration, development, acquisition and production of natural gas and medium to light gravity crude oil reserves in Alberta. New Range's common shares trade on the TSX Venture Exchange under the symbol RGE.

New Range's primary corporate objective is to achieve non-dilutive growth and enhance shareholder value through internal prospect development, strategic production acquisitions and prudent financial management.

Forward-looking Information

Certain information regarding New Range in this news release including management's assessment of future plans and operations, wells to be drilled, timing of drilling of wells, production estimates and planned capital expenditures may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas development, production, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals, and inability to fund required capital expenditures. As a consequence, New Range's actual results, performance or achievements could differ materially from those expressed in, or be given that any events anticipated by the forward-looking statements will transpire or occur, or, if any implied by, these forward-looking statements and, accordingly no assurance can of them do so, what benefits New Range will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect New Range's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at New Range's website (www.newrangeresources.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and New Range does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • New Range Resources Ltd.
    Hugh M. Thomson
    President and Chief Executive Officer
    (403) 532-4466
    (403) 303-2503 (FAX)
    Email: hthomson@new-north.com
    Website: www.newrangeresources.com
    or
    New Range Resources Ltd.
    750, 330 - 5th Ave. S.W.
    Calgary, AB T2P 0L4