MINERAL WELLS, TEXAS--(Marketwired - May 29, 2013) - Rango Energy, Inc. (OTCBB:RAGO), an oil and gas exploration and development company, is pleased to announce that as of 2pm Pacific Time, May 28th 2013, drilling has been initiated on its first well at the 11,000 acre Kettleman Middle Dome ("KMD") project. The project is located within a producing oil field in the San Joaquin Basin, where companies such as Chevron, Occidental Petroleum and others are active. The project area is located within both Kings and Kern Counties, in South Central California, near the prolific Lost Hills oilfields.
The initial drill target for the first well, #17-18, will be the oil rich McAdams sandstone formation, a 900 to 1,000 foot thick Eocene age reservoir located at a depth of approximately 12,000 feet. The McAdams sandstone has been a prolific producer in the adjacent Kettleman North Dome field, producing over 400 million barrels of oil at an average of 2 million barrels per well.
Other oil bearing formations that have been mapped directly at the KMD project are the Kreyenhagen Shale, the Vaqueros sandstone and the much-publicized, Monterey Shale.
Craig Alford, PGeo and VP of Exploration of Rango Energy, stated: "We are confident knowing Hangtown has a firm grasp of the nuances and challenges associated with drilling through high-pressure reservoirs in route to the target formation. The drilling of the #17-18 well is a very significant milestone for Rango."
Hangtown recently executed a drilling contract with Nabors Industries, Ltd. for a 1200 HP, triple drilling rig rated to 15,000', which is capable of drilling into the McAdams formation, the target for the first well (#17-18). Hangtown has indicated the drilling rig has arrived on location and the spud will occur in the next few days. The drilling budget for the #17-18 is estimated at a very conservative 50 days. However, Hangtown feels it will be able to complete sooner if no mechanical issues occur during drilling.
As the operator, Hangtown will be responsible for drilling and producing the wells. Hangtown's principals have been involved in the drilling of several thousand wells over their 70 years of combined experience; they possess the requisite expertise to drill conventional and deep formation wells safely and efficiently.
Rango, a non-operating working interest participant, has recently partnered with Hangtown Energy, Inc. ("Hangtown") to develop promising assets in three projects. The terms of the participation call for Rango to provide drilling capital in exchange for working interests in the wells being drilled. Rango has committed to an initial six-well program with Hangtown, and both parties will continue to jointly develop the KMD project along with two other projects Hangtown controls; one in the neighboring Elk Hills area of the same basin and the other in the Ventura basin.
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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