STA.L Regulatory News (STA)

RANGE RESOURCES LTD - Joint Venture Agreement On Georgian CBM Project

PR Newswire

London, February 18

JOINT VENTURE AGREEMENT ON GEORGIAN CBM PROJECT

Highlights:

- Agreement reached on the joint development of the Coal Bed

Methane ("CBM") and conventional gas potential around the Tkibuli-Shaori Coal

Field with Georgian Industrial Group ("GIG");

- Tkibuli Project has estimated Contingent Resources of

approximately 400 bcf of CBM gas (mean 100% basis);

- GIG is the largest industrial holding company in Georgia;

- The fast-track assessment and development program is designed for

gas production and sales to potentially begin within 18 months;

- GIG to purchase all gas produced on a take or pay arrangements;

and

- Pilot project proposal to be predominantly debt financed,

reducing immediate financial commitments for Range.

Range Resources Limited ("Range" or "the Company") is pleased toannounce that the Company, along with its joint venture partners, Strait Oiland Gas UK Limited ("Strait") and Red Emperor Resources Limited ("RedEmperor") (together "the Consortium") have executed a heads of agreement withthe Georgian Industrial Group ("GIG") with respect to the joint development ofthe Coal Bed Methane project (CBM) and conventional potential around theTkibuli–Shaori Coal Field ("Tkibuli") in the Republic of Georgia.

Terms of Agreement

GIG and the Consortium will jointly establish a Development Companyon a 50:50 basis. The Development Company will be commencing feasibility andtechnical studies, followed by an initial three to four well pilot project.The appraisal / pilot production wells will be drilled first to clarify flowrates and other key parameters including optimum well construction /completion strategy, well spacing and water treatment, prior to full scaledevelopment. Based on the previous ARI study it is planned to execute 6 CBMwells per annum that are forecast to produce between 0.3-0.5 mmcf per well perday, which over a short period of time (ie. 3+ years) are projected to buildto a significant production base for the joint venture that will enablefurther expansion of the CBM project.

The initial pilot project will focus on appraising targets alreadyventing methane, thus ensuring a higher chance of success. The work programmeis anticipated to commence in the second half of 2013 and will bepredominantly debt financed, resulting in limited financial commitments forRange moving forward. New wells will target horizons at depths between 500 and2,000 metres and can be drilled within 45 days. The fast-track program isdesigned to allow potential gas production and sales to begin within 18 monthsgiven the existing infrastructure and logistics. GIG have agreed a take or payarrangement for all gas produced by the Development Company at a 5% discountto a regional indexed price less transportation, removing the monetizationrisk so often faced with prospective CBM projects. Over the last few yearsregional prices have averaged between US$8 - US$10 per Mcf.

It is the intention of the Consortium to ensure that the first wellof the pilot program counts as the commitment well with respect to retainingBlock VIb.

Tkibuli Project Overview

Tkibuli has been estimated by Advanced Resources International tocontain Contingent Resources (mean) of approximately 0.4 trillion cubic feet("tcf") of CBM gas (Range's attributable 40% interest is 0.16 tcf). Sandhorizons have also been identified around the coal beds, which could addadditional, conventional hydrocarbon resources to those estimated for CBM atTkibuli alone. Over 400 exploration and non-hydrocarbon wells have beendrilled in the Tkibuli area, many encountering hydrocarbons and one producinggas for over 35 years.

CBM has become an increasingly important source of energy around the world andproduction is well established in the US, Australia and China. Access tomarket is key to commercialisation and, although major pipelines transect thecountry, Georgia remains almost entirely dependent on imports of foreignnatural gas. CBM production from Tkibuli, therefore, could immediately be fedinto the local energy market.

Georgia Industrial Group Partnership

The Georgian Industrial Group was established in 2006 and hasextensively invested in the local economy and continues to support prospectivebusinesses. GIG operates the 200MW gas-fired power station located inGardabani, as well as importing 25% of gas currently used in Georgia. Thepower station currently does not use any gas sourced locally in Georgia.

GIG is the largest holding company within Georgia and embraces anumber of subsidiary companies operating in the energy sector, acquiring andprocessing of natural resources, production of building materials, logisticsservice and real estate development.

GIG's operations are concentrated on the acquiring and processingof the Country's resources, which in turn, fosters the long-term developmentand success of Georgian industries.

Executive Director Peter Landau commented:

"This is a major opportunity for the company and the significanceof the project should not be understated. The Partnership with the GeorgianIndustrial Group, the largest industrial and holding company within Georgia,is a milestone towards establishing itself in a country that still remainsalmost entirely dependent on imports of foreign natural gas. The existence oftake or pay arrangements in place for all gas produced, removes themonetization risk associated with the project. The ability to finance theproject through debt further underpins the proposition, by removing anyimmediate financial commitments to Range. We believe that the deal has hugepotential for the company in the next three to five years as the productionbase grows, and will generate significant revenues for the Company. The jointventure compliments Range's current focus on production growth, whilstensuring its operational and financial capabilities remain with Trinidad."

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 withthree onshore production licenses and fully operational drilling subsidiary.Independently assessed Proved (P1) reserves in place of 17.5 MMbls with 25.2MMbls of proved, probable and possible (3P) reserves and an additional 81MMbls of unrisked best estimate prospective resources.

- In the Republic of Georgia, Range holds a 40% farm-in interest inonshore blocks VIa and VIb, covering approx. 7,000sq.km. Range completed a410km 2D seismic program with independent consultants RPS Energy identifying68 potential structures containing an estimated 2 billion barrels ofundiscovered oil-in-place (on a mean 100% basis) with the first (Mukhiani-1)exploration well having spudded in July in 2011. 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.

- In Puntland, Range holds a 20% working interest in two licensesencompassing the highly prospective Dharoor and Nugaal valleys. The operatorand 60% interest holder, Horn Petroleum Corp. (TSXV:HRN) has completed twoexploration wells and will continue with a further seismic and well programover the next 12-18 months.

- Range holds a 25% interest in the initial Smith #1 well and a 20%interest in further wells on the North Chapman Ranch project, Texas. Theproject area encompasses approximately 1,680 acres in one of the most prolificoil and gas producing trends in the State of Texas. Independently assessed 3Preserves in place (on a 100% basis) of 228 Bcf of natural gas, 18 mmbbls ofoil and 17 mmbbls of natural gas liquids.

- Range holds a 21.75% interest in the East Texas Cotton ValleyProspect in Red River County, Texas, USA, where the prospect's project areaencompasses approximately 1,570 acres encompassing a recent oil discovery. Theprospect has independently assessed 3P reserves in place (on a 100% basis) of3.3mmbbls of oil.

- Range is earning a 65% (option to move to 75%) interest in thehighly prospective PUT 6 and PUT 7 licences in Putumayo Basin in SouthernColombia. The Company will undertake a 350km2 3D seismic program across thetwo licences and drill one well per licence, as well as looking to re-enter apreviously suspended well that had a significant historical reserve estimate.

- Range has taken a strategic stake (19.9%) in Citation ResourcesLimited (ASX: CTR) which holds a 70% interest in Latin American Resources(LAR). LAR holds an 80-100% interest in two oil and gas development andexploration blocks in Guatemala with Canadian NI 51-101 certified proved plusprobable (2P) reserves of 2.3 MMBBL (100% basis). Range also holds a 10%interest in LAR.

Table of Reserves and Resources

* Reserves attributable to Range's interest in the North ChapmanRanch asset, which are net of government and overriding royalties as describedin the Forrest Garb report.

** The reserves estimate for the Guatemalan Blocks in which LAR(and CTR) have an interest in is as reported by CTR. CTR has not reported 1Pand 3P estimates, but Range is seeking such information from CTR for futurereporting purposes.

Detailed below are the estimated resources and oil-in-placedelineated across Range's portfolio of project interests.

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.

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 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 estimates for the 3 Trinidad blocks and updatereserves estimates for the North Chapman Ranch Project and East Texas CottonValley referred above have been formulated by Forrest A. Garb & Associates,Inc. (FGA). FGA is an international petroleum engineering and geologicconsulting firm staffed by experienced engineers and geologists. CollectivelyFGA staff has more than a century of world–wide experience. FGA haveconsented in writing to the reference to them in this announcement and to theestimates of oil and natural gas liquids provided. The definitions for oil andgas reserves are in accordance with SEC Regulation S–X an in accordance withthe guidelines of the Society of Petroleum Engineers ("SPE"). The SPE Reservedefinitions can be found on the SPE website at spe.org.

RPS Group is an International Petroleum Consulting Firm withoffices worldwide, who specialise in the evaluation of resources, and haveconsented to the information with regards to the Company's Georgian interestsin the form and context that they appear. These estimates were formulated inaccordance with the guidelines of the Society of Petroleum Engineers ("SPE").

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 TSX certified 51-101 certified reserves with respect to theGuatemalan project are as reported by ASX listed Company Citation Resources(ASX: CTR).

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 Contingent Resource estimate for CBM gas at the Tkibuli project is sourcedfrom the publically available references to a report by Advanced ResourcesInternational's ("ARI") report in 2009: CMM and CBM development in theTkibuli-Shaori Region, Georgia. Advanced Resources International, Inc., 2009.Prepared for GIG/Saknakhshiri and U.S. Trade and Development Agency. -.globalmethane.org/documents/toolsres_coal_overview_ch13.pdf. Range'stechnical consultants have not yet reviewed the details of ARI's resourceestimate and the reliability of this estimate and its compliance with the SPEreporting guidelines or other standard is uncertain. Range and its JV partnerswill be seeking to confirm this resource estimate, and seek to definereserves, through its appraisal program and review of historical data duringthe next 12 months.

Reserve information on the Putumayo 1 Well published by Ecopetrol 1987.

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.