STA.L Regulatory News (STA)

3 September 2013 The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 Via E–lodgement Georgia and Texas Update Range Resources Limited ("Range" or "the Company") is pleased toprovide an update with respect to its Georgian and Texas projects. Georgia Following on from the completion of the 200 km 2D seismic programearlier this year, the Company engaged Senior Geologist, Dr. M. Arif Yuklerand his team to perform a full review of both the conventional andunconventional (Coal Bed Methane) hydrocarbon potential on blocks VI a and VIb. Dr Yukler's review incorporated the 610 km of 2D seismic acquiredacross the two licences in 2009 and 2012/13, along with incorporating all ofthe older Soviet data that existed across the blocks including seismic, welllogs and geochemical information. Following the extensive review, which included pseudo 3Dquantitative basin modelling of the blocks, the targeted hydrocarbon in-placeand reserve calculations for blocks VI a and VI b were completed with theresults being highly encouraging as summarised below: Conventional Conventional Oil Conventional GasUndiscovered Oil / Gas (mmbbls) (Tcf)in (best estimate) (best estimate)Place Total Oil / Gas in 403 18.4PlaceRange Attributable 181 8.3(45%) * Low to high ranges of the in-place undiscovered oil and gasvolumes have not yet been estimated. Range is currently undertaking furthermodelling work to provide such ranges. CBM Reserve Proved (1P) Proved & Proved & EstimatedEstimates Reserve Probable (2P) Probable & Total (Bcf) Reserve (Bcf) Possible (3P) Gas-in-Place Reserve(Bcf) (Tcf) Total Gas In Place 0 0 508 3.16Range Attributable (45%) 0 0 229 1.42 * The reserve estimates reflect conservatively applied recoveryfactors. It is noted that recovery factors for CBM range as high as 60% basedon feasibility work performed to date. Conventional Oil and Gas Based on the pseudo 3D quantitative basin modelling of the blocks,conventional oil and gas generation was computed from the two primarypotential source rocks, Toarcian and Upper Bajocian. The potential amount ofundiscovered oil in place in the potential reservoir targets generated fromthe Toarcian and the Upper Bajocian source rocks have been estimated as 403mmbbls (best estimate - 100% basis). The estimated conventional undiscoveredgas in place in the potential reservoir targets generated from the Toarcianand the Upper Bajocian source rocks is 18.4 Tcf (best estimate - 100% basis).Based on current estimated reservoir parameters, targeted recovery factors forthe undiscovered oil and gas estimates are currently 20-30%. However, theseestimates are subject to significant uncertainty. Coal Bed Methane Work was also undertaken to review the coal bed methane ("CBM")potential that existed across the licences, over and above the previouslyreported Tkibuli prospect, with the total CBM resource calculated using theisopach maps for the Upper Bathonian coaly section. The coaly section covers368 km2 and 83 km2 in blocks VI a and VI b, respectively. A continuously thickand high quality coal area of 36 km2 was delineated by more than 300 wells inBlock VI a. All these wells encountered gas in the Upper Bathonian coallysection. The CBM reserves in this area are computed as being at the Proved,Probable & Possible (3P) category. The blocks are estimated to contain 3P gasreserves of 508 Bcf (100% bais) and a total of CBM gas in place of 3.16 Tcf(100% basis). The results of this extensive review clearly show that both blockshave significant gas potential and good oil potential. The compilation of allthe available data and re-evaluation of the geochemical data show the coalpresent in the blocks have similar high hydrocarbon generation capabilities asthe coals in the North Sea, Indonesia and New Zealand. With the addition ofthe amounts of hydrocarbon generation in the Upper Bathonian, the totalresource is anticipated to be higher than the amounts given above and will bedetermined at a later date. The Company has presented the CBM potential to the Georgian StateAgency and the Georgian Oil and Gas Corporation with both parties agreeing onthe significant potential that exists across the licence areas. The news ofthe highly prospective hydrocarbon play has been conveyed to the EnergyMinister and the Prime Minister, who see this potential as an opportunity toimprove the energy outlook for the Country. Proposed Work Program The Company is currently evaluating the selection of a suitabledrill location and given the high quality of the seismic coverage and qualityon CBM, the Company is focussing on a high probability CBM drill location witha number of potential locations with good coal well coverage having beenidentified. The analysis shows that the average CBM content is more than 15 m3/t of coal. GIG Joint Venture and Farm-Out Discussions The results are pivotal in cementing the CBM joint venture with GIGas development plans are finalised. Further, Range continues with advanceddiscussions with a number of parties with respect to potential farm-outopportunities across both the conventional and unconventional prospectsidentified on the Company's licenses. Dr. M. Arif Yukler Dr. Yukler has more than 38 years of experience in theinternational oil & gas industry, and has advised companies and governmententities of all size from small caps to super-majors, as well as stateregulatory authorities on the management of resources and exploration areas.Dr. Yukler has held numerous senior executive roles at energy companiesthroughout his career. He is known as the father of quantitative basinmodelling with 1-, 2- and 3-D software under his name. Dr. Yukler's has extensive experience in Georgia and previouslyworked as the General Manager of Frontera Resources and as the Senior VP ofWorld Wide Geosciences. He was in charge of evaluation of new ventures, PSAand JV negotiations, economic evaluations, budgeting and carrying outfeasibility studies with main focus on the Caucasus (Azerbaijan, Dagestan,Georgia and Krasnadar Area in Russia). Since then Dr. Yukler worked as the CEOof Midland Oil and Gas Ltd. Dr. Yukler has MS and PhD in Geology from the University of Kansasas Fullbright Scholar, and BS and MSc in Petroleum Engineering from IstanbulTechnical University. He has published more than 30 research articles. Texas Further to its previous announcements, the Company is proceedingwith completion of its Texas asset sale having received confirmation from thePurchaser of settlement. The Company will advise the market when the $25mupfront cash consideration has been received. Yours faithfully Peter LandauExecutive 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 OperatorOil & NGL -mmbbls Trinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 RangeGuatemala * 2.3* * 32% * 0.74* * Latin American ResourcesTotal Oil & 17.5 22.5 25.2 17.5 20.9 25.2LiquidsGas Reserves -BcfGeorgia - CBM - - 508 45% - - 229 Strait Oil & GasTotal 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 Prospective Oil Resources - mmbblsTrinidad 8.1 40.5 81.0 100% 8.1 40.5 81.0 RangeTotal Prospective 8.1 40.5 81.0 8.1 40.5 81.0Resources Undiscovered Oil-In-Place - mmbblsPuntland - 16,000 - 20% - 3,200 - Horn PetroleumGeorgia - 403 - 45% - 181 - Strait Oil & GasColombia - 7.8 - 65-75% - 5.1 - - Petro Caribbean 5.8Undiscovered Gas-In-Place - TcfGeorgia - Conventional - 18.44 - 45% - 8.30 - Strait Oil & GasGeorgia - 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.