DALLAS, TEXAS--(Marketwired - Sept. 24, 2013) - Rango Energy, Inc. (OTCBB:RAGO) ("Rango Energy" or "the Company"), an oil and gas exploration and development company, provided an update today confirming that the well at Kettleman Middle Dome well (KMD 17-18), currently suspended with total drilling depth at approximately 8,000 feet, remains a viable well and that the Company intends to continue operations for this well targeting the McAdams formation. Rango and Hangtown are evaluating several options on how best to proceed, pending results of subsequent wells drilled into the Temblor reservoir and the completion of financing efforts currently underway. The Company is not incurring costs on KMD 17-18 while these initiatives are in process and is confident this well-bore will be commercially viable.
Simultaneously, Rango and Hangtown (the "Companies") have completed the permitting process and satisfied environmental requirements for the Elk Hills projects. The Elk Hills project targets the Sespe Sands, which are shallower wells than KMD 17-18 with estimated costs of approximately $600,000 for each well. The production profile for similar wells in the area have EUR's (estimated ultimate recovery) of 150,000 to 250,000 barrels of oil per well.
The Company also reports significant progress is being made to finalize the merger with Hangtown Energy. The post-merger Company will include three previously drilled wells at KMD, which are controlled by Hangtown and awaiting completion to initiate production. The cumulative production for these wells is estimated to be between 300 and 600 BOPD. The post-closing structure will shift operations to Rango Energy and include present Hangtown management team members Vincent Ramirez, Chief Geologist and Hangtown CEO, and Hangtown President, Mark Zouvas, who will lead Rango's team in support of its strategies to develop a dynamic portfolio of world-class oil and gas properties.
Rango CEO, Harp Sangha, commented, "We have been working very hard on building a strong and dynamic corporate platform to support the initiatives set out by both the Companies several months ago. There is an incredible opportunity before us and we remain committed to leveraging our resources and talent to execute on our corporate strategy, achieve our objectives, and most importantly, increase shareholder value. We thank our partners and shareholders for their continuing patience and support as we take the necessary steps toward completing the Hangtown merger, securing financing to develop our properties, and implementing our operational strategies. We remain unbowed in our goal of building a successful oil and gas exploration company."
About Rango Energy
Rango Energy, Inc. is an exploration stage oil and natural gas company with a strategy to identify, evaluate, explore, and develop new opportunities for oil and natural gas production across North America.
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Safe Harbor Statement
Certain information contained in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates", "intends" or "believes", or that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", or "be achieved".
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the SEC. Such risks and other factors include, among others, the ability to locate and acquire suitable interests in oil and gas properties on terms acceptable to the Company, the availability of financing on acceptable terms, accidents, labor disputes, acts of God and other risks of the oil and gas industry including, without limitation, risk of liability under environmental protection legislation, delays in obtaining governmental approvals or permits, title disputes or claims limitations on insurance coverage. The Company believes that the expectations reflected in the forward-looking statements included in this news release are reasonable; however, no assurance can be given that these expectations will prove to be correct, and such forward-looking statements should not be unduly relied upon. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.