29 Nov 2010 07:00
29 November 2010
Australian Securities ExchangeLevel 4, 20 Bridge StreetSYDNEY NSW 2000Via e-lodgement COMMENCEMENT OF ACTIVITIES IN GEORGIA Highlights * Range/Strait commence unique and proven "helium" survey on 3 top drilling locations in Georgia * Proven technology used successfully (over 50 completed projects) by the majority of the Russian Major E&P Companies * Survey compliments seismic and historical data and greatly improves the chances of success with regards to a discovery with the first 2 wells * Immediate mobilisation into Georgia (20 day work program) with results in January allowing for rig mobilisation in February 2011
Range Resources Limited ("Range" or "the Company") is pleased to announce that it has engaged international geochemical company, Actual Geology International Limited ("AGI") to carry out a "helium" survey on the 3 top multi-stacked prospects as identified by RPS Energy which have estimated undiscovered oil-in-place in excess of 450 mmbbls (mean 100% basis) as previously announced.
Figure 1 - Numerous Prospects and Leads with Mean Estimated Oil-in-Place (mm bbls)
AGI have been given the co-ordinates of three of the six identified "ready to drill' prospects and will commence mobilisation of its team into Georgia in the coming days, ready to commence field operations early December. AGI's timetable is that field work will take approximately 3-4 weeks to complete and another 3 weeks to complete the laboratory analysis and results.
The survey will be a "blind test" where AGI will shoot the survey without any prior seismic info on the co-ordinates provided by Range/Strait. After the survey and results are compiled by AGI they are integrated with the existing seismic results to produce the best possible target locations to be drilled.
Given the successful results that the geochemical technology has demonstrated, the Company believes that, for the cost of approximately 3% of the current proposed budget for drilling 2 wells, the survey will significantly increase the probabilities in ensuring that the 2 well drill program is successful.
About Actual Geology International
AGI has completed major field projects for Gazprom, Lukoil, Rosneft, Rusneft and other leading oil & gas companies. The technology applied by AGI uses qualities of helium gas emanating from deep layers of the earth towards the earth's surface. Helium is 10 times more soluble in oil pools, and 150 times more soluble in natural gas pools than in strata water, so abnormally high concentrations of helium gas (helium anomalies) in sub-soil air can indicate presence of oil & gas deposits in underlying formations. The technology uses onsite sampling equipment to measure helium concentrations in shallow bore-holes (less than 1.5m) on a regular grid, and analyzes the results to produce a map of "sweet spots" for oil & gas drilling.
The surveys can be implemented both at new areas with no geological data and at areas where detailed seismic exploration work has already been carried out. Survey results at new areas ensure that seismic work will focus on zones with best prospects for oil & gas presence. At areas where seismic exploration results are already available, helium surveying is used to assess probability of oil & gas presence in known seismic structures.
actualgeology.com/clients.phtml
For and on behalf of the Board
RegardsPeter LandauExecutive DirectorContactsRange ResourcesPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Conduit PRDavid Tasker Jonathan CharlesTel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7429 6611Em: david.tasker@ppr.com.au Em: jonathan@conduitpr.comRFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Broker)Stuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188Range Background
Range Resources is a dual listed oil & gas exploration company with oil & gas interests in the frontier state of Puntland, Somalia, the Republic of Georgia and Texas, USA.
* Range holds a 25% interest in the initial Smith #1 well and 20% interest in further wells on the North Chapman Ranch project, Texas. The project area encompasses approximately 1,680 acres in one of the most prolific oil and gas producing trends in the State of Texas. Drilling of the first well has resulted in a commercial discovery with independently assessed gross recoverable reserves in place of 240 Bcf of natural gas, 18 mmbbls of oil and 17 mmbbls of natural gas liquids (mean 100% basis). * Range holds a 13.56% interest in the East Texas Cotton Valley Prospect in Red River County, Texas, USA, with the prospect's project area encompasses approximately 1,570 acres encompassing a recent oil discovery. The prospect has independently assessed gross recoverable reserves in place of 5.4 Mmbbls of oil (mean 100% basis). * In Puntland, Range holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys with plans to drill two wells - 55% Operator, in 2011. * In the Republic of Georgia, Range holds a 50% farm-in interest in onshore blocks VIa and VIb, covering approx. 7,000sq.km. Currently, Range has recently completed a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing and estimated 2.045 billion barrels of undiscovered oil-in-place (mean 100% basis). * In Trinidad Range has entered into a HOA to acquire a 10% interest in holding companies with three onshore production licences. The licences areas have independently assessed gross recoverable P2 reserves in place of 4.8MMbls (mean 100% basis).
The reserves estimate for the North Chapman Ranch Project and East Texas Cotton Valley has been formulated by Lonquist & Co LLC who are Petroleum Consultants based in the United States with offices in Houston and Austin. Lonquist provides specific engineering services to the oil and gas exploration and production industry, and consults on all aspects of petroleum geology and engineering for both domestic and international projects and companies. Lonquist & Co LLC have consented in writing to the reference to them in this announcement and to the estimates of oil, natural gas and natural gas liquids provided. These estimates were formulated in accordance with the guidelines of the Society of Petroleum Engineers ("SPE"). The SPE Reserve definitions can be found on the SPE website at www.spe.org.
The reserves estimates for the 3 Trinidad blocks referred above have been formulated by Forrest A. Garb & Associates, Inc. (FGA). FGA is an international petroleum engineering and geologic consulting firm staffed by experienced engineers and geologists. Collectively FGA staff has more than a century of worldâ€"wide experience. FGA have consented in writing to the reference to them in this announcement and to the estimates of oil and natural gas liquids provided. The definitions for oil and gas reserves are in accordance with SEC Regulation Sâ€"X.
RPS Group is an International Petroleum Consulting Firm with offices worldwide, who specialise in the evaluation of resources, and have consented to the information with regards to the Company's Georgian interests in the form and context that they appear. These estimates were formulated in accordance with the guidelines of the Society of Petroleum Engineers ("SPE").
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