STA.L Regulatory News (STA)

29 October 2013 The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 Via E–lodgement Company Update Today the Company has released the Notice of Meeting in respect ofvarious matters that need to be considered in accordance with the CorporationsAct and ASX Listing Rules. In the context of this it is important to look back, and reflecton, the year just gone. The board of Range Resources Limited ("Range" or "theCompany") acknowledges it has been a difficult year for all involved in theCompany, resulting largely from a delay in the timing of key events and a fallin the value of the Company's share price. We, like all shareholders, aredisappointed by certain key events which were outside our control in additionto delayed delivery of other events which were under our control. The purpose of this letter is not to divert attention from theissues but to acknowledge them and identify and highlight the range ofsignificant achievements, of which there has been many, we have made thisyear. It has not been a year devoid of achievement. From the board's view, Range is now positioned to fulfil its keycorporate and operational goals moving forward, namely to lift and maintainproduction in Trinidad to 4,000 bopd by the end of 2014 and to 9,000 bopd bythe end of the 2015. A key milestone in the delivery of this goal has been thecompletion of a comprehensive field development plan in Trinidad, compiled bymanagement and independent technical experts as part of the process offinalising a reserve-based lending facility. The development plan sets out thegeological, operational and financial parameters for the exploitation of theCompany's P1 Reserves over the next three (3) years. This represents more thanthree (3) months' work by both internal and external sources and provides aclear development framework for our initial production increase in Trinidad. It is important to note that the development plan does not takeinto account any incremental production from P2 / P3 reserves, prospectiveresources or exploration success. The Management believes it sets a veryrealistic benchmark to move from current production through to 4,000 bopd bythe end of 2014 and 9,000 bopd by the end of 2015, through conventional andunconventional (waterflooding) work programmes. In preparation for the drawdown of the reserve-based lendingfacility and in conjunction with the field development plan, Range identifiedthe need, as previously advised, to effectively take its drilling rigs offlineand subject them to a rigorous maintenance and testing program to ensure thatthe drilling targets as part of the field development plan can be met andprevious delays and breakdowns are avoided to the maximum extent possible. Tothis end Range employed an experienced Rig Maintenance Manager to oversee therepairing and improving of all drill rigs owned by the Company, a processthat has largely been completed. As many shareholders will be aware, the timing of the ramp up inproduction and the drilling rigs all coming back on line in Trinidad isextremely beneficial with regards to the recent changes to the fiscal regimein Trinidad which will see significant financial benefits accrued by theCompany over the coming years. In addition to the field development plan, Range is in advancedstages of securing additional rigs on "Joint Venture" terms with an oilservices provider to ensure that the Company's aggressive explorationprogramme continues with multiple Lower Cruse and Herrera targets, the NikoResources farm-in acreage and the potential of being awarded a block in theupcoming onshore bid round. Range is also extremely encouraged with the exploration success ofthe Guatemalan project and believes that the value of Range's interest in thisproject will be significantly enhanced over the coming months with thedrilling of the Atzam #5 well (due to spud in November 2013) and the re-entryof the 2 Tortugas wells (see announcement dated 28 October 2013). Whilst we appreciate, and share, the frustration of manyshareholders with Range being required to enter into additional equityfinancial arrangements due to unexpected delays in the receipt of the Texassale proceeds and the draw down of the RBL, these have unfortunately beenunavoidable. Despite this, the Company believes that key milestones are closeto being resolved and once completed will provide the Company with a strongfinancial footing by which to advance its development and production plans. Our project in Georgia for many has been forgotten, largely becauseother assets have taken a greater prominence in the portfolio. Despite this wehave undertaken significant work on these projects over many years andattracted a significant partner in GIG (Georgian Industrial Group). As alludedto in recent announcements we are very confident a strategic farm-in / jointventure will be concluded during the current quarter to both complement andimprove the existing arrangements with GIG, which will be of substantialbenefit to Range shareholders. Despite the delays, which we acknowledge have been significant, theCompany has received assurances in recent days from the purchasers of theTexas asset that they are proceeding and we will advise shareholders as soonas payment is received. In respect of the potential merger with International PetroleumLimited (NSX: IOP), Range is still in constructive discussions with themregarding a range of corporate alternatives to the original merger proposaland reminds shareholders that we do have US$8m in secured loan financing aspart of the current arrangements. As part of the Company's move to significant operational focus andexpansion in Trinidad, a board process has commenced with the objective offinding a suitable Managing Director to take the Company through to its 9,000+bopd target. Range looks forward to updating shareholders in respect of thekey developments referred to above. Yours faithfully Peter Landau Executive Director Contacts Range Resources Limited PPR (Australia)Peter Landau David TaskerT: +61 (8) 9488 5220 T: +61 (8) 9388 0944E: plandau@rangeresources.com.au E: david.tasker@ppr.com.au GMP Securities Europe LLP RFC Ambrian Limited (Nominated Advisor)(Joint Broker) Stuart LaingRichard Greenfield / Rob Collins / T: +61 (8) 9480 2500Alexandra CarseT: +44 (0) 207 647 2800 Fox-Davies Capital Limited (Joint Old Park Lane Capital (Joint Broker)Broker) Michael ParnesDaniel Fox-Davies T: +44 (0) 207 493 8188T: +44 (0) 203 463 5000 Dahlman Rose & Company (Principal American Liaison)OTCQX International Market (U.S.)Christopher Weekes / Stephen NashT: +1 (212)-372-5766 Range Background Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil & gasexploration company with oil & gas interests in the frontier state ofPuntland, Somalia, the Republic of Georgia, Texas, USA, Trinidad and Colombia. - In Trinidad Range holds a 100% interest in holding companies with threeonshore production licenses and 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. - In the Republic of Georgia, Range holds a 45% farm-in interest in onshoreblocks VIa and VIb, covering approx. 7,000sq.km. The Company is focussing on arevised development strategy that will focus on low-cost, shallow appraisaldrilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli")coal deposit, which straddles the central sections of the Company's twoblocks, along with attracting potential farm-in partners across the licenseareas given the recent review performed across the licenses. - In Puntland, Range holds a 20% working interest in two licenses encompassingthe highly prospective Dharoor and Nugaal valleys. The operator and 60%interest holder, Horn Petroleum Corp. (TSXV:HRN) has completed two explorationwells and will continue with a further seismic and well program over the next12-18 months. - Range is earning a 65% (option to move to 75%) interest in highlyprospective licences in the Putumayo Basin in Southern Colombia. The Companywill undertake a 3D seismic program in the near term as part of itsexploration commitments on the Company's Colombian interests. - Range has taken a strategic stake (19.9%) in Citation Resources Limited(ASX: CTR) which holds a 70% interest in Latin American Resources (LAR). LARholds an 80-100% interest in two oil and gas development and explorationblocks in Guatemala with Canadian NI 51-101 certified proved plus probable(2P) reserves of 2.3 MMBBL (100% basis). Range also holds a 20% interest inLAR. Table of Reserves and Resources Detailed below are the estimated reserves for the Range project portfolio. Gross Oil Reserves Range's Net AttributableProject 1P 2P 3P Interest 1P 2P 3P Operator Oil & NGL -mmbbls Trinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 Range Guatemala * 2.3* * 32% * 0.74* * Latin American Resources Total Oil & 17.5 22.5 25.2 17.5 20.9 25.2Liquids Gas Reserves -Bcf Georgia - CBM - - 508 45% - - 229 Strait Oil & Gas Total Gas - - 508 - - 203Reserves * The reserves estimate for the Guatemalan Blocks in which LAR (and CTR) havean interest in is as reported by CTR. CTR has not reported 1P and 3Pestimates, but Range is seeking such information from CTR for future reportingpurposes. Detailed below are the estimated resources and oil-in-place delineated acrossRange's portfolio of project interests. Gross Oil Resources Range's Net AttributableProject Low Best/ High Interest Low Best/ High Operator Mean Mean Contingent Oil Resources - mmbbls Guatemala - 20.1 - 32% - 6.4 - Latin American Resources Total Contingent - 20.1 - - 6.4 -Resources Prospective Oil Resources - mmbbls Trinidad 8.1 40.5 81.0 100% 8.1 40.5 81.0 Range Total Prospective 8.1 40.5 81.0 8.1 40.5 81.0Resources Undiscovered Oil-In-Place - mmbbls Puntland - 16,000 - 20% - 3,200 - Horn Petroleum Georgia - 403 - 45% - 181 - Strait Oil & Gas Colombia - 7.8 - 65-75% - 5.1 - 5.8 - Petro Caribbean Undiscovered Gas-In-Place - Tcf Georgia - - 18.44 - 45% - 8.30 - Strait Oil & GasConventional Georgia - CBM - 3.16 - 45% - 1.42 - Strait Oil & Gas All of the technical information, including information in relation toreserves and resources that is contained in this document has been reviewedinternally by the Company's technical consultant, Mr Mark Patterson. MrPatterson is a geophysicist who is a suitably qualified person with over 25years' experience in assessing hydrocarbon reserves and has reviewed therelease and consents to the inclusion of the technical information. The reserves estimate for the Guatemalan Blocks in which LAR (and CTR) have aninterest in is as reported by CTR. CTR has not reported 1P and 3P estimates,but Range is seeking such information from CTR for future reporting purposes. The reserves estimates for the 3 Trinidad blocks and update reserves estimatesfor the North Chapman Ranch Project and East Texas Cotton Valley referredabove have been formulated by Forrest A. Garb & Associates, Inc. (FGA). FGA isan international petroleum engineering and geologic consulting firm staffed byexperienced engineers and geologists. Collectively FGA staff has more than acentury of world–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 S–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. The prospective resource estimates for the two Dharoor Valley prospects areinternal estimates reported by Africa Oil Corp, the operator of the jointventure, which are based on volumetric and related assessments by Gaffney,Cline & Associates. The TSX certified 51-101 certified reserves with respect to the Guatemalanproject are as reported by ASX listed Company Citation Resources (ASX: CTR). In granting its consent to the public disclosure of this press release withrespect 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. Reserve information on the Putumayo 1 Well published by Ecopetrol 1987. The technical information included in this Announcement with respect toGeorgia was prepared by Dr. M. Arif Yukler, COO of SOG Georgia. Dr Yukler is ageologist who is a suitably qualified person with more than 38 years ofexperience 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 and ProspectiveResources Proved Reserves are those quantities of petroleum, which by analysis ofgeoscience and engineering data, can be estimated with reasonable certainty tobe commercially recoverable, from a given date forward, from known reservoirsand under defined economic conditions, operating methods, and governmentregulations. Probable Reserves are those additional Reserves which analysis of geoscienceand engineering data indicate are less likely to be recovered than ProvedReserves but more certain to be recovered than Possible Reserves. Possible Reserves are those additional reserves which analysis of geoscienceand engineering data indicate are less likely to be recoverable than ProbableReserves. 1P refers to Proved Reserves, 2P refers to Proved plus Probable Reserves and3P refers to Proved plus Probable plus Possible Reserves. Prospective Resources are those quantities of petroleum estimated, as of agiven date, to be potentially recoverable from undiscovered accumulations byapplication of future development projects. Prospective Resources have both anassociated chance of discovery and a chance of development. ProspectiveResources are further subdivided in accordance with the level of certaintyassociated with recoverable estimates assuming their discovery and developmentand may be sub-classified based on project maturity. Contingent Resources are those quantities of hydrocarbons which are estimated,on a given date, to be potentially recoverable from known accumulations, butwhich are not currently considered to be commercially recoverable. Undiscovered Oil-In-Place is that quantity of oil which is estimated, on agiven date, to be contained in accumulations yet to be discovered. Theestimated potentially recoverable portion of such accumulations is classifiedas Prospective Resources, as defined above.