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9 Mar 2012 07:47
9 March 2012
The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000By e-lodgementNORTH CHAPMAN RANCH UPDATE
Range Resources Limited ("Range" or "the Company") is pleased to announce further success in the appraisal and development of the North Chapman Ranch Field in Texas (Range 20-25% interest), with the successful drilling of the Smith #2 and Albrecht #1 wells.
Initial gross flow rates from the uppermost pay zone, which is one of fourprincipal pay zones, in the Smith #2 well reached more than 3.0 MMcfd & 125Bopd, with more than 7500 psi flowing casing pressure on a 10/64" choke. Workis being conducted now to remove all of the plugs below the upper pay zone andcombine the remaining lower pay zones to achieve maximum rate and recovery.
The Smith #2 well was drilled approximately 1,350 ft. southeast of the Smith #1 discovery well, further extending the Company's Proved Reserves in that direction.
The Smith #2 was followed immediately by the Albrecht #1, drilled more than1,500 ft. southeast of the Smith #2. The Albrecht #1 confirmed the presence ofthe Howell Hight reservoir in that area and is also expected to add significantProved Reserves to the Company's portfolio.With four wells now drilled in the field, Range estimates that over 80% of thestructural closure at the Howell Hight reservoir falls into the Proved andProbable (2P) category. Work is currently underway to revise the reserveestimates at North Chapman Ranch, and is expected to be finalized once TheAlbrecht #1 well comes online. The Albrecht well is scheduled for completionand fracture stimulation within the next 4-6 weeks.Once the Smith #2 and Albrecht #1 wells are both online, Range estimates thatits net production and cash flow from the project will increase by more than200% over current levels.Yours faithfullyPeter 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.uk
RFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Joint Broker)Stuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188Panmure Gordon (Joint Broker)Katherine Roe / Brett JacobsTel: +44 (0) 207 459 3600Range BackgroundRange Resources Limited is a dual listed oil & gasexploration 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 Proved (1P) reserves in place of 15.4 MMbls with 19.6 MMbls of proved, probable and possible (3P) reserves and an additional 20 MMbls (mean) 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. Range has recently
completed a 410km 2D seismic program with independent consultants RPS
Energy identifying 68 potential structures containing an estimated 2
billion barrels of undiscovered oil-in-place (on a mean 100% basis) with
the first (Mukhiani-1) of two exploration wells having spudded in July in
2011. Re-interpreted seismic supported by the Mukhiani-1 vertical seismic
profiling has identified new fault and stratigraphic trapping potential with the possibility of a side track well to be drilled post additional seismic in 2H 2012. * In Puntland, Range holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys. The
operator and 60% interest holder, Horn Petroleum Corp. spudded
the first well in a two well programme in early 2012 targeting 300mmbls and
375mmbbls of best estimate Prospective Resources (100% basis). Site
construction has commenced on the second well with the setting of the 30
inch surface casing and the drilling of a 50 meter pilot hole in readiness
for spudding following the completion of the first well.
* 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. 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 3P
reserves in place (on a 100% basis) of 242 Bcf of natural gas, 15 mmbbls of
oil and 19 mmbbls of natural gas liquids.
* Range holds a 21.75% interest in the East Texas Cotton Valley Prospect in
Red River County, Texas, USA, where the prospect's project area encompasses
approximately 1,570 acres encompassing a recent oil discovery. The prospect
has independently assessed 3P reserves in place (on a 100% basis) of
3.3mmbbls of oil.
The reserves estimates for the 3 Trinidad blocks and update reserves estimatesfor the North Chapman Ranch Project and East Texas Cotton Valley referred abovehave been formulated 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 worldâ€"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 Sâ€"X an in accordance with the guidelines of theSociety of Petroleum Engineers ("SPE"). The SPE Reserve definitions can befound on the SPE website at spe.org.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.
In granting its consent to the public disclosure of this press release withrespect to the Company's Trinidad operations, Petrotrin makes no representationor warranty as to the adequacy or accuracy of its contents and disclaims anyliability that may arise because of reliance on it.
SPE Definitions for Proved, Probable, Possible Reserves and Prospective Resources
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 geoscience and engineering data indicate are less likely to be recovered than Proved Reserves 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.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.ABN 88 002 522 009www.rangeresources.com.auLondon
Suite 1A, Prince's House, 38 Jermyn Street, London SW1 6DN t: +44 (0)207 025 7040, f: +44 207 287 8028
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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