Rango has recently entered into an agreement with Hangtown Energy whereby it will provide the funding for 100% of a 6 well initial development program into three (3) exciting project areas in Central and Southern California, namely the Kettleman Middle Dome ("KMD"), Elk Hills, and South Tapo Canyon, with an option of further development of the project areas.
The Company is extremely excited to be part of the development of the KMD area. Undeveloped anticlines are exceedingly rare. We believe that using newer technology and drilling muds on the McAdams sandstone reservoir will yield production rates that could equal or far exceed those from the prolific Kettleman North Dome area. Currently 26 well sites have been identified with more to come. The gross revenue potential of the McAdams formation wells is projected to be in excess of 2 billion dollars.
Rango is actively pursuing a strategy of partnering with land and leasehold owners to earn a working interest in projects with sound geology, proven success, and near existing infrastructure to reduce the capital risk associated with oil and gas exploration.