STA.L Regulatory News (STA)

9 Dec 2011 12:29

9 December 2011The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000By e-lodgementOPERATIONAL UPDATE

Range Resources Limited ("Range" or "the Company") is pleased to provide the following update with respect to its international operations.

Trinidad

Following receipt of the necessary Trinidadian authority approvals for the release, the Company is pleased to announce that Rig 1 successfully completed the drilling of the step out QUN116ST well and encountered approximately 66 feet of net pay zone in the Lower Forest Sands. Following the drilling of the well to target depth, casing was set to 975 ft and the well then turned to production, with initial natural pressure flow rates of 50 bopd which has exceeded the Company's targeted rates on the shallow 1,000ft wells of 15-30 bopd. This is especially encouraging given this was achieved under natural flow as opposed to under pump. Rig 1 has moved onto well location QUN 118 (being an offset to the QUN 117 well referred below), which will also be targeting the Lower Forest sands and is currently drilling with a total depth of 950 feet.

Rig 2 has reached the extended target depth on the QUN117 well of 2,400 ft, with good oil sands and oil shows encountered approximately between 560-830 feet and 2220-2300 feet. The initial results from this well look to have extended the Lower Forest and Upper Cruse trend to the east of existing wells and confirmed the predictions that the current well program would extend the existing fields. A production rig has been moved onto the location for production flow testing with early indications exceeding the Company's expectation on the 2,000ft wells (50-100 bopd target) as well as confirming the potential for possible production from both the Lower Forest and Upper Cruse trends.

Rig 2 is being moved along trend targeting the Lower Forest and Upper Cruse oil sands approximately 400 feet east of this well with the new location already constructed in readiness to spud the QUN 119 well.

Figure 1 - Rig 2 drilling the QUN117 well.

Rig 8 has been moved to the MD 248 location and rigging up awaiting Ministry inspection, expected to be received in the coming weeks. The well has a target depth of 6,500 ft and will be targeting the Middle Cruse and Lower Cruse sands. This well is the first of three (3) deeper wells that the Company hopes will extend the main field Middle Cruse trend in the east and west direction, and also test for the deeper, Lower Cruse sands expected immediately below.

The forecast increase to 1,400 - 1,800 bopd from existing wells and the current 21 well program is well on target and confirmed by the current program to date. The scheduled completion of the 21 well program has been moved to Q1 2012 with 10 wells expected to be completed by year end.

The Company is also pleased to report that it has recently added an additional 70 operational personnel to the Trinidad team with the various mechanical departments now operating 24 hour work schedules in support of the expanding drilling operations. A number of sites have already been prepared for the current rigs in operation (6 sites for Rig 1, 2 sites for Rig 2 and the second site for Rig 8 currently under construction) which are expected to allow the seamless transition for each rig onto their next drilling target.

Georgia

Following a further internal and independent review of the seismic on the Kursebi area, the Company, along with its partners in Georgia can confirm that work is due to commence on the preparation of the well site and surrounds in readiness to receive the drilling rig for the spudding of the second exploration well on the Kursebi 2 prospect. Targeted spud date is late December / early January.

As identified in the RPS report announced in December 2010, the Kursebi 2 prospect has mean unrisked gross undiscovered estimated oil in place of 160MMbbls (Range's 40% attributable interest is 64MMbbls).

Texas - North Chapman Ranch

The Company is also pleased to announce that completion operations and flow testing is underway on the Smith #2 Well with good initial hydrocarbon shows recorded in the objective Howell Hight section - with total gross pay comparable to the Smith #1 well (130 ft). The well will now be fracture stimulated to look to maximise production, as was successfully undertaken on the Smith #1 and Russel Bevly wells. The Company will provide further updates in due course.

Initiation of Research Coverage - Panmure Gordon

The Company is also pleased to announce that on 8 December 2011 Panmure Gordon & Co. ("Panmure Gordon") initiated coverage on Range with the release of a comprehensive research report on the Company.

Panmure Gordon is a leading corporate and institutional stockbroking and investment banking Group with offices across the UK, US and Europe, providing clients with access to the combined financial expertise of 230 dedicated professionals across nine cities. Panmure Gordon has established a reputation for excellence and integrity since it was founded in 1876.

Panmure Gordon has a respected and growing natural resources franchise advising clients with operations in Europe, the North Sea, Falklands, Brazil, China, North America, Canada, Africa and the Caribbean.

The report is only available to registered institutional clients of Panmure Gordon. For access to the report, please contact your individual broker.

The Company would also like to announce that an interview with the Company's Managing Director, Mr Peter Landau, has been uploaded to the Company's website.

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 3150 Em: 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 8188Panmure Gordon (Joint Broker)Katherine Roe / Brett JacobsTel: +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 1P reserves in place of 15.4 MMbls (on a mean 100% basis) with 19.7 MMbls recoverable 3P reserves 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 an estimated 2 billion barrels of 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 VSP new fault trap 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 with the operator and 45% interest holder, Africa Oil Corp planning to commence the two well programme in 2011 (targeting (on a mean 100% basis) 300mmbls and 375mmbbls of best estimate gross recoverable oil in place) following the recent awarding of the rig contract. Site construction complete in readiness for spudding first well late December 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, where 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 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 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. These estimates were formulated in accordance with the 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 with respect to the Company's Trinidad operations, Petrotrin makes no representation or warranty as to the adequacy or accuracy of its contents and disclaims any liability that may arise because of reliance on it.

ABN 88 002 522 009www.rangeresources.com.auABN 88 002 522 009www.rangeresources.com.auLondonSuite 1A, Prince's House, 38 Jermyn Street, London SW1 6DNt: +44 (0)207 025 7040, f: +44 207 287 8028

Australia

Ground Floor, 1 Havelock Street, West Perth WA 6005, Australiat: +61 8 9488 5220, f: +61 8 9324 2400

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