18 Nov 2010 07:02
18 November 2010
Company AnnouncementsAustralian Securities ExchangeExchange Plaza2 The EsplanadePERTH WA 6000By E-lodgement
GEORGIAN ESTIMATE OF PROSPECTIVE GROSS OIL-IN-PLACE OF 2 BILLION BARRELS
Highlights:
* 68 individual structures, each containing stacked reservoirs, have been indentified across Range's two Georgian Block's VIa and VIb; * Independent best estimate of gross undiscovered and unrisked oil-in-place across these identified prospects of 2.05 billion barrels (1.025b barrels attributable to Range); and * Six ready to drill targets identified with gross oil-in-place of 728m barrels (Range 50% plus cost recovery).
Range Resources Limited ("Range" or "the Company") is pleased to announce the initial results from the draft report entitled Seismic Interpretation, Field Mapping and Evaluation of Prospective Hydrocarbon Volumes across the Company's two Georgian blocks (Block VIa and Block VIb) completed by leading International Oil and Gas Seismic Consultancy firm RPS Energy ("RPS").
RPS has identified a total of 68 structural culminations across the two blocks (refer to figure 1) each of which potentially contains stacked reservoirs. Total combined best estimate of gross unrisked oil-in-place across these 68 indentified structural culminations amounts to 2,045 million barrels. Recovery factors for oil in place can be conservatively estimated at 30%.
Figure 1 - Prospects and Leads across Block V1a and Block VIb - please refer to website.
Of the 68 identified prospective targets across the two blocks, 6 structures have been prioritised as being ready for drilling. Of these 6 structures, total gross unrisked oil-in-place has been estimated at 728 million barrels (364 million barrels attributable to Range).
A breakdown of the gross unrisked oil-in-place for these 6 `ready to drill' prospects are as follows:
Prospect Unrisked Oil-in-Place (gross 100% basis) Kursebi 1 (K1) 123 million barrels Kursebi 2 (K2) 160 million barrels Kursebi 3 (K3) 42 million barrels Vani 1 (V1) 171 million barrels Vani 2 (V2) 89 million barrels Vani 3 (V3) 145 million barrels TOTAL 728 million barrels
Figure 2 highlights a number of the prospective targets across the two blocks, including the 6 prioritised prospects identified above.
Figure 2 - Numerous Prospects and Leads with Gross Unrisked Oil-in-Place (MMbbls) - please refer to website.
Exploration and Production History
Oil seeps are widespread in Georgia, with exploration in the country having commenced during the 19th century, by exploitation of the surface seeps and shallow drilling beneath them. The first substantive discovery, the Supsa Field near the Black Sea, was made in 1889 and still produces small amounts of oil today.
Georgia is a reasonably well established hydrocarbon producing province with a number of discoveries and seeps along the Greater Caucasus and Achara-Trialet frontal folds, which are present along the northern and southern margins of the two licenses, where there are numerous oil and gas seeps.
There have been a number small to medium discoveries to date, with the largest being the Samgori field, which was discovered in 1974 and has produced more than 165mmbbls to date, with an estimated 200mmbls of recoverable reserves. The trend of oil discoveries in Georgia confirms the presence of a working hydrocarbon system that extends from Georgia into the Black Sea.
Mobilisation / Drilling Scheduling
Range and Strait (its joint venture partner in the Georgian Blocks) are finalising the mobilisation and drilling program and will update in due course.
Presentation
A copy of the presentation given at the Oil Barrel conference in London will be put on the Company's website and also available on www.asx.com.au.
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 Forbes CutlerTel: +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. * 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. Independently assessed gross recoverable reserves in place of 5.4 Mmbbls of oil. * In Puntland, Range holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys with the Operator and 55% interest holder, Africa Oil Corp. planning to drill two wells 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 oil-in-place. * In Trinidad Range has entered into a HOA to acquire a 10% interest in holding companies with three onshore production licenses. Independently assessed gross recoverable P2 reserves in place of 4.8MMbls.
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.
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