STA.L Regulatory News (STA)

28 January 2014 The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 Via E–lodgement Guatemala Update Range Resources Limited ("Range" or "the Company") would like to drawattention to the announcement released today by Citation Resources Limited(ASX:CTR) with respect to the Company's interest in Guatemala with thefollowing highlights: - Atzam #5 oil well was spudded on 15 January and is drilling on schedule, currently at 431 ft - Initial drilling program progressing as planned through shallow, hard limestone section - Drilling schedule is approximately 40 days on a trouble free basis, to a planned TD of 4,100 ft - Primary reservoir targets are the C17, C18 and C19 carbonates - expected to be drilled through from circa 2,700 ft - Atzam #5 well targeting the same carbonate reservoir targets as the Atzam #4 production well - 2.3m barrels of 2P reserves excluding the Atzam #4 primary C18 and C19 carbonate sections - Atzam #4 production continues at ~150 bopd from C17 carbonate section - following increased choke (16/64ths) production rate and well head pressure constant after 2 weeks, no water production - Significant exploration potential on Atzam Oil Field - unexplored salt dome and anticline structures to be evaluated and tested through 2014 Range has a direct and indirect 32% interest in the Guatemalan Project. Further details are contained in the Citation Resources announcement, which canbe accessed at: http://www.citation.net.au/media/articles/ASX-Announcements/20140128-Atzam-5---Drilling-Ahead-On-Schedule--269/ctr-14-Atzam-5-Drilling-Ahead-On-Schedule.pdf Yours faithfully Peter LandauExecutive Director ContactsRange 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(Joint Broker) Advisor)Richard Greenfield / Rob Collins / Stuart LaingAlexandra Carse T: +61 (8) 9480 2500T: +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 Buchanan (Financial PR - UK)Tim Thompson / Ben Romney / Helen Chan / Tom HuftonT: +44 (0) 20 7466 5000E: rangeresources@buchanan.uk.com 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 Trinidad; Puntland, Somalia;the Republic of Georgia; Guatemala; Texas, USA, 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. 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 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 programme as part of its exploration commitmentson the Company's Colombian interests. Farm–in interest from a number ofparties has been received and preparations for the seismic programme will beinitiated subject to further financing becoming available. - Range has taken a strategic stake (19.9%) in Citation Resources Limited(ASX: CTR) which holds a 60% 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 RangeGuatemala* 0.4 2.3 - 32% 0.13 0.74 - Latin American ResourcesTotal Oil & 17.9 22.5 25.2 17.6 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. 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 - mmbblsGuatemala - 20.1 - 32% - 6.4 - Latin American ResourcesTotal Contingent Resources - 20.1 - - 6.4 -Prospective Oil Resources - mmbblsTrinidad (BM & MD) 8.1 40.5 81.0 100% 8.1 40.5 81.0 RangeTrinidad - Niko JV 20.3 101.5 203.0 40%* 8.1 40.6 81.2 RangeonshoreTrinidad - Niko JV 6.6 33.0 66.0 32.5%* 2.1 10.7 21.5 RangeoffshoreTotal Prospective 35.0 175.0 350.0 18.3 91.8 183.7ResourcesUndiscovered Oil-In-Place - mmbblsPuntland - 16,000 - 20% - 3,200 - Horn PetroleumGeorgia - 403 - 45% - 181 - Strait Oil & GasColombia - 7.8 - 65-75% - 5.1 - 5.8 - Petro CaribbeanUndiscovered Gas-In-Place - TcfGeorgia - Conventional - 18.44 - 45% - 8.30 - Strait Oil & GasGeorgia - CBM - 3.16 - 45% - 1.42 - Strait Oil & Gas *Range's interest in the Niko JV resources is subject to completingits earn-in obligations. All of the technical information, including information in relationto reserves and resources that is contained in this document has been reviewedinternally by the Company's technical advisor, Mr Mark Patterson. Mr Pattersonis a petroleum geologist and geophysicist who is a suitably qualified personwith over 30 years' experience in assessing hydrocarbon reserves and hasreviewed the release and consents to the inclusion of the technicalinformation. The reserves estimates for the 3 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 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. 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. Reserve information on the Putumayo 1 Well published by Ecopetrol1987. 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.