STA.L Regulatory News (STA)

22 April 2014 ASX Code: RRS and AIM Code: RRL Range Resources Limited ("Range" or "the Company") Company Update Range wishes to provide the following update on the Company'scorporate and operational activities. Trinidad Update - Operations continue without any safety or environmental incidentsand have been LTI-free since September 2013. - Average production for March was 533 bpd oil. - Three of the fleet of six drilling rigs are fully operational anddrilling ahead. The fourth (rig 1) has now undergone preliminary regulatoryinspections prior to becoming operational. - The maintenance programme for the remaining heavy rigs 6 & 7continues. - Morne Diablo field development drilling update: - QUN 148 well completed and on production. - QUN 149 well drilled to a total depth of 1,400 ft. in the LowerForest horizon. The well was completed and is under production test. - QUN 150 well is drilling with the rig at approximately 700 ft.(target depth 1,400 ft.) - Following delays in sourcing equipment the sidetrack on thedeeper well MD 248 kicked off from 3,234 ft. targeting a depth of 6,500 ft. - South Quarry field development drilling update: - QU 452 well was drilled to a revised depth of 1,945 ft. The wellwas logged and partly perforated, showing an influx of oil with no waterproduced. Currently awaiting regulatory approvals for further perforations. QU452 was the first development well to be drilled in the South Quarry fieldsince 2007. This outstep development program is expected to extend the field'sshallow producing trend into new fault blocks and result in additional ProvedReserves and future development targets. - QU 453 well is drilling with rig 2 below 700 ft. (target depth2,000 ft.) - The Company has received Petrotrin approval for its BeachMarcelle waterflood programme and is currently awaiting further regulatoryapprovals. - The Company is also delighted to announce the appointment of MrTerry Motley, as Operations Manager in Trinidad. Mr Motley has extensiveglobal experience in all aspects of drilling and production operations,including Trinidad. Most significantly, having managed multiple rigs toincrease oil production onshore Yemen from 2,000 bopd to 25,000 bopd over atwo-year period. Additionally, Mr Motley has technical expertise in horizontaldrilling, high-pressure wells, and multi-well developments. Corporate Update Financing The new Range management team, in place since February 2014, arereviewing a number of financing opportunities, including the previouslyannounced Reserve Based Lending option, for the Company's development projectsin Trinidad. The Company is also seeking to refinance the existing convertiblebond issues. Negotiations with funding providers are ongoing and Range willupdate the market as and when these are finalised. Texas The Company acknowledges the failure of the purchaser to completethe sale of its Texas assets within the agreed timeframe. The Company willcontinue to pursue sale completion with the purchaser while also running asimultaneous process to re-market the assets in order to divest this non-coredevelopment project. Other Assets In Guatemala, the Operator (Latin American Resources) is drillingahead the Atzam #5 well at 2,907 ft. - currently drilling through the C17carbonate sections. The Atzam #5 well plan is to drill to the top of the C18carbonate section and set 9 5/8 inch production casing, then drill ahead to aplanned depth of 4,100 ft. to open hole test the C18 and C19 primary reservoirtargets. The Company will provide an update on successfully reaching targetdepth. As previously announced, Range is continuing with non-core assetrationalization in Georgia and Colombia, as the strategic focus is now on theCompany's world-class onshore position in Trinidad. International Petroleum As previously announced, the proposed merger with InternationalPetroleum Ltd will not be proceeding. Constructive negotiations are continuingwith regards to Range's $8m loan to International Petroleum. LandOcean Strategic Alliance The Company is pleased to announce the completion of a memorandumof understanding with LandOcean Energy Services Co Ltd ("LandOcean")(SHE:300157), whereby the two companies intend to form a strategic alliancefor the development of international oil and gas projects (the "understanding"). The understanding significantly increases Range's technical capabilitieswhile also providing additional options for the funding of future projects.The understanding between Range and LandOcean is set out in a non-binding termsheet, which is subject to final, legally binding documentation. Furtherdetails of the terms of the proposed strategic alliance will be provided tothe market if and when the parties enter into final documentation. LandOcean is one of the largest listed oil and gas servicescompanies in China and provides a wide variety of services across the upstreamdevelopment cycle, from frontier geological studies through to engineering andprocurement for development and production projects. Range is very pleased tohave LandOcean as a technical partner as we continue to rationalise andrestructure our portfolio. Change of Company Secretary Mr Anthony Eastman and Ms Jane Flegg will step down as JointCompany Secretaries and will be replaced by Ms Rebecca Sandford in the UK andMs Sara Kelly in Australia. The Board would like to thank Mr Eastman and MsFlegg for their commitment and contribution to the Company. Investor Update Conference Call The Company would also like to announce that it will be holding anupdate conference call for analysts and investors on Wednesday 14 May at 09.00GMT. Range's CEO, Rory Scott Russell, will be hosting the call and willprovide corporate and operational updates on the Company. Conference call dial-in details will be provided via separateannouncement in due course. Investors are invited to submit questions via email ahead of theconference call to the Company's Financial PR, Buchanan -rangeqanda@buchanan.uk.com. Please send any questions by 09.00 GMT on Friday,9 May. Commenting on today's announcement, Rory Scott Russell, CEO, said: "Since joining Range in February I have been working to restructureand focus the Company's portfolio, implement appropriate financing for ourprojects and bring in an experienced oil and gas management team. We aremaking progress on all these fronts and the new management team is excited bythe opportunities ahead, particularly in building on our world-class onshoreTrinidad asset." Issue of shares The Company announces the issue of 72,089,309 Ordinary Fully PaidShares pursuant to the conversion of debt at AU$0.01 per share, 6,250,000Unlisted Options issued for debt conversion as per agreement (£0.006, 31 March2017) and 14,583,334 Unlisted Options issued for debt conversion as peragreement (£0.006, 30 April 2017). Application will be made for the 72,089,309 new shares to beadmitted to trading on the ASX and AIM. Trading in the new shares is expectedto commence on AIM on or around 25 April 2014. Following the issue of these securities the total number ofsecurities on issue is as follows: 3,690,863,252 Ordinary Fully Paid Shares80,508,341 Options ($0.05, 31 January 2016)855,166 Unlisted Options (£0.04, 30 June 2015)7,058,824 Unlisted Options (£0.17, 30 April 2016)17,921,146 Class B Performance Shares5,180,000 Unlisted Options (£0.075, 31 January 2017)9,000,000 Unlisted Options (£0.125, 31 March 2015)15,708,801 Unlisted Options (£0.0615, 19 October 2015)32,275,862 Unlisted Options (£0.05075, 30 November 2015)5,000,000 Unlisted Options ($0.10, 31 January 2016)5,000,000 Unlisted Options ($0.06, 10 February 2016)146,533,850 Unlisted Options (£0.04, 30 April 2016)5,000,000 Unlisted Options (£0.037, 11 July 2016)476,190 Unlisted Options (£0.021, 25 July 2016)952,381 Unlisted Options (£0.021, 29 July 2016)6,714,284 Unlisted Options (£0.021, 31 August 2016)9,000,000 Unlisted Options (£0.02, 31 August 2016)3,947,369 Unlisted Options (£0.19, 30 September 2016)8,666,670 Unlisted Options (£0.18, 30 September 2016)694,445 Unlisted Options (£0.018, 31 October 2016)2,205,885 Unlisted Options (£0.017, 31 October 2016)1,250,000 Unlisted Options (£0.016, 31 October 2016)17,333,336 Unlisted Options (£0.015, 31 October 2016)3,000,000 Unlisted Options (£0.015, 30 November 2016)1,428,571 Unlisted Options (£0.014, 30 November 2016)3,923,077 Unlisted Options (£0.013, 30 November 2016)2,000,000 Unlisted Options ($0.0321, 11 December 2016)4,083,334 Unlisted Options (£0.012, 31 December 2016)20,545,457 Unlisted Options (£0.011, 31 December 2016)21,136,365 Unlisted Options (£0.011, 31 January 2017)6,250,000 Unlisted Options (£0.006, 31 March 2017)14,583,334 Unlisted Options (£0.006, 30 April 2017) Yours faithfully Rory Scott RussellChief Executive Officer Contacts Range Resources Limited Buchanan (Financial PR - UK)Rory Scott Russell Tim Thompson / Helen Chan T: +44 (0) 20 7466 5000 E: rangeresources@buchanan.uk.com GMP Securities Europe LLP (Broker) RFC Ambrian Limited (Nominated Advisor)Rob Collins / Liz Williamson Samantha Harrison / Trinity McIntyreT: +44 (0) 207 647 2800 T: +44 (0) 20 3440 6800 / +61 (8) 9480 2500 PPR (Financial PR - Australia) Dahlman Rose & Company (PrincipalDavid Tasker American Liaison)T: +61 (8) 9388 0944 OTCQX International Market (U.S.)E: david.tasker@ppr.com.au Christopher Weekes / Stephen Nash T: +1 (212)-372-5766 Range Background Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil &gas exploration company with oil & gas interests in Trinidad; Puntland,Somalia; the Republic of Georgia; Guatemala; Texas, USA, and Colombia. - In Trinidad Range holds a 100% interest in holding companies withthree onshore production licenses and a fully operational drilling subsidiary.Independently assessed Proved (P1) reserves in place of 17.5 MMBO with 25.2MMBO of proved, probable and possible (3P) reserves and an additional 81 MMBOof unrisked prospective resources. Range also has a farm in with NikoResources giving it exposure to circa 280,000 acres of prospective onshore andoffshore acreage. - In the Republic of Georgia, Range holds a 45% farm-in interest inonshore blocks VIa and VIb, covering approx. 7,000sq.km. The Company isfocussing on a revised development strategy that will focus on low-cost,shallow appraisal drilling of the contingent resources around theTkibuli-Shaori ("Tkibuli") coal deposit, which straddles the central sectionsof the Company's two blocks, along with attracting potential farm-in partnersacross the license areas given the recent review performed across thelicenses. - In Puntland, Range holds a 20% working interest in two licensesencompassing the highly prospective Dharoor and Nugaal valleys. The operatorand 60% interest holder, Horn Petroleum Corp. (TSXV: HRN) has completed twoexploration wells and will continue with a further seismic and well programover the next 12-18 months. - Range is earning a 65% (option to move to 75%) interest in highlyprospective licences in the Putumayo Basin in Southern Colombia. Farmâ€ininterest from a number of parties has been received and preparations for theseismic programme will be initiated subject to further financing becomingavailable. - Range has taken a strategic stake in Citation Resources Limited (ASX: CTR)and Latin American Resources (LAR) which hold interest in two oil and gasdevelopment and exploration blocks in Guatemala with Canadian NI 51-101certified proved plus probable (2P) reserves of 2.3 MMBBL (100% basis). Rangehas a direct and indirect 32% interest in the Guatemalan Project. Table of Reserves Detailed below are the estimated reserves for the Range projectportfolio. Gross Oil Reserves Range's Net AttributableProject 1P 2P 3P Interest 1P 2P 3P OperatorOil & NGL - mmbbls Trinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 RangeGuatemala 0.4 2.3 - 32% 0.1 0.7 - Latin American ResourcesTotal Oil & Liquids 17.9 22.5 25.2 17.6 20.9 25.2Gas Reserves - TcfGeorgia - CBM - - 0.6 45% - - 0.2 Strait Oil & GasTotal Gas - - 0.6 - - 0.2Reserves With the exception of Guatemala, all of the technical information,including information in relation to reserves and resources that is containedin this document has been reviewed internally by the Company's technicaladvisor, Mr Mark Patterson. Mr Patterson is a petroleum geologist andgeophysicist who is a suitably qualified person with over 30 years' experiencein assessing hydrocarbon reserves and has reviewed the release and consents tothe inclusion of the technical information. The reserves estimates for the three Trinidad blocks have beenformulated by Forrest A. Garb & Associates, Inc. (FGA). FGA is aninternational petroleum engineering and geologic consulting firm staffed byexperienced engineers and geologists. Collectively FGA staff has more than acentury of worldâ€wide experience. FGA have consented in writing to thereference to them in this announcement and to the estimates of oil and naturalgas liquids provided. The definitions for oil and gas reserves are inaccordance with SEC Regulation Sâ€X an in accordance with the guidelines ofthe Society of Petroleum Engineers ("SPE"). The SPE Reserve definitions can befound on the SPE website at spe.org. In granting its consent to the public disclosure of this pressrelease with respect to the Company's Trinidad operations, Petrotrin makes norepresentation or warranty as to the adequacy or accuracy of its contents anddisclaims any liability that may arise because of reliance on it. The TSX certified 51-101 certified reserves with respect to theGuatemalan project are as reported by ASX listed Company Citation Resources(ASX: CTR). The prospective resource estimates for the two Dharoor Valleyprospects are internal estimates reported by Africa Oil Corp, the operator ofthe joint venture, which are based on volumetric and related assessments byGaffney, Cline & Associates. The technical information included in this announcement withrespect to Georgia was prepared by Dr. M. Arif Yukler, COO of SOG Georgia. DrYukler is a geologist who is a suitably qualified person with more than 38years of experience in the international oil & gas industry, and in assessinghydrocarbon reserves. Dr Yukler has advised companies and government entitiesof all size from small caps to super-majors, as well as state regulatoryauthorities on the management of resources and exploration areas. Dr. Yuklerhas reviewed the release and consents to the inclusion of the technicalinformation with respect to Georgia. SPE Definitions for Proved, Probable, Possible Reserves andProspective Resources Proved Reserves are those quantities of petroleum, which byanalysis of geoscience and engineering data, can be estimated with reasonablecertainty to be commercially recoverable, from a given date forward, fromknown reservoirs and under defined economic conditions, operating methods, andgovernment regulations. Probable Reserves are those additional Reserves which analysis ofgeoscience and engineering data indicate are less likely to be recovered thanProved Reserves but more certain to be recovered than Possible Reserves. Possible Reserves are those additional reserves which analysis ofgeoscience and engineering data indicate are less likely to be recoverablethan Probable Reserves. 1P refers to Proved Reserves, 2P refers to Proved plus ProbableReserves and 3P refers to Proved plus Probable plus Possible Reserves. Prospective Resources are those quantities of petroleum estimated,as of a given date, to be potentially recoverable from undiscoveredaccumulations by application of future development projects. ProspectiveResources have both an associated chance of discovery and a chance ofdevelopment. Prospective Resources are further subdivided in accordance withthe level of certainty associated with recoverable estimates assuming theirdiscovery and development and may be sub-classified based on project maturity. Contingent Resources are those quantities of hydrocarbons which areestimated, on a given date, to be potentially recoverable from knownaccumulations, but which are not currently considered to be commerciallyrecoverable. Undiscovered Oil-In-Place is that quantity of oil which isestimated, on a given date, to be contained in accumulations yet to bediscovered. The estimated potentially recoverable portion of suchaccumulations is classified as Prospective Resources, as defined above.