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12 Aug 2011 07:00
12 August 2011
The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000By e-lodgementGeorgia Drilling Update
International oil and gas exploration, development and production company,Range Resources Limited ("Range" or "the Company") along with its joint venturepartners Strait Oil and Gas UK Ltd ("Strait") and Red Emperor Resources ("RedEmperor") is pleased to announce that drilling of an initial 8 ½" pilot holehas reached its planned depth of 700m and has been successfully logged with theresults confirming the anticipated lithology. The pilot hole is currently beingopened up to 17 ½" after which the 13 3/8" casing will be run and cemented anddrilling will then resume with a target total depth of approximately 3,500mexpected to be reached in mid-September.
The Mukhiani Well is targeting the Vani 3 prospect which has the following estimated undiscovered stock tank oil-in-place ("STOIIP"):
Vani 3 Prospect - STOIIP (MMbbls)
P90 P50 P10 MeanGross (100%) 41.7 92.7 178.2 115.2
Net Attributable to Range (40%) 16.7 37.1 71.3 46.1
The recently completed geochemical helium survey undertaken by Range confirmedthe suitability of the first drill location with oil exploration anddevelopment prospectivity complementing the earlier seismic work completed onthe target.
For and on behalf of the Board
RegardsPeter LandauExecutive DirectorContactsRange Resources LimitedPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Tavistock CommunicationsDavid Tasker Ed Portman/Paul YouensTel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7920 3150Em: david.tasker@ppr.com.au Em: eportman@tavistock.co.ukRFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Joint Broker)Stuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188 Panmure Gordon (Joint Broker) Katherine Roe / Brett Jacobs Tel: +44 (0) 207 459 3600Range Background
Range Resources Limited is a dual listed oil & gas exploration company with oil & gas interests in the frontier state of Puntland, Somalia, the Republic of Georgia, Texas, USA and Trinidad.
* In Trinidad Range recently completed the acquisition of a 100% interest in
holding companies with three onshore production licenses and fully
operational drilling subsidiary. Independently assessed gross recoverable
3P reserves in place of 6.9 MMbls (on a mean 100% basis) with an additional
20 MMbls of prospective resources.
* In the Republic of Georgia, Range holds a 40% 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
billion barrels of oil-in-place (on a mean 100% basis) with the first of
two exploration wells having spudded in July in 2011. * In Puntland, Range holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys with the
operator and 45% interest holder, Africa Oil Corp planning to
drill two wells in 2011.
* 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 (on a mean 100% basis) of 240 Bcf of natural
gas, 18 mmbbls of oil and 17 mmbbls of natural gas liquids.
* Range holds a 21.75% 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.
Independently assessed gross recoverable reserves in place (on a mean 100%
basis) of 5.4 mmbbls of oil.
The reserves estimate for the North Chapman Ranch Project and East Texas CottonValley has been formulated by Lonquist & Co LLC who are Petroleum Consultantsbased in the United States with offices in Houston and Austin. Lonquistprovides specific engineering services to the oil and gas exploration andproduction industry, and consults on all aspects of petroleum geology andengineering for both domestic and international projects and companies.Lonquist & Co LLC have consented in writing to the reference to them in thisannouncement and to the estimates of oil, natural gas and natural gas liquidsprovided. These estimates were formulated 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 reserves estimates for the 3 Trinidad blocks referred above have beenformulated by Forrest A. Garb & Associates, Inc. (FGA). FGA is an internationalpetroleum engineering and geologic consulting firm staffed by experiencedengineers and geologists. Collectively FGA staff has more than a century ofworldâ€"wide experience. FGA have consented in writing to the reference to themin this announcement and to the estimates of oil and natural gas liquidsprovided. The definitions for oil and gas reserves are in accordance with SECRegulation Sâ€"X.RPS Group is an International Petroleum Consulting Firm with offices worldwide,who specialise in the evaluation of resources, and have consented to theinformation with regards to the Company's Georgian interests in the form andcontext that they appear. These estimates were formulated in accordance withthe guidelines of the Society of Petroleum Engineers ("SPE").
The prospective resource estimates for the two Dharoor Valley prospects are internal estimates reported by Africa Oil Corp, the operator of the joint venture, which are based on volumetric and related assessments by Gaffney, Cline & Associates.
ABN 88 002 522 009www.rangeresources.com.auLondon
5th Floor, 23 King Street, St. James's House, London SW1 6QY
t: +44 207 389 0588, f: +44 207 930 2501
Australia
Ground Floor, 1 Havelock Street, West Perth WA 6005, Australia
t: +61 8 9488 5220, f: +61 8 9324 2400
e: admin@rangeresources.com.au
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