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23 Feb 2012 07:09
23 February 2012
The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000By e-lodgementPUNTLAND UPDATE
Range Resources Limited ("Range" or "the Company") would like to announce an update on the drilling of the Shabeel-1 exploration well in the Dharoor Valley Block in onshore Puntland.
The Shabeel-1 exploration well spudded on January 17, 2012 and is currently at a depth of 1,230 meters. Casing has been set in the well to a depth of 1,139m and drilling of the 12 ¼ inch section continues as planned. Drilling of the Shabeel-1 well is expected to be completed before the end of March and testing equipment is currently being mobilized to the site. Assuming successful drilling results, it is anticipated that testing results will be available early in the second quarter of 2012. Upon completion of drilling the Shabeel-1 well, the rig will move to the Shabeel North-1 well, where 30 inch conductor pipe is in place and a 50 meter pilot hole has already been drilled.
These two wells represent the first exploration wells to be drilled in the country in over 20 years and will satisfy the first exploration period drilling commitments as required under the Production Sharing Contracts for both the Dharoor and Nugaal Blocks. In order to provide sufficient time to evaluate drilling results, the Puntland Government has granted an extension of the first exploration period expiry date 17 October 2012.
The Puntland Government and Dharoor Valley communities are fully supportive of the drilling project and have ensured the Company that they will do all necessary to allow the project to move forward safely and expeditiously.
GEORGIA UPDATE
Range would also like to announce that, due to the severe weather conditions that have been experienced across Europe and Eastern Europe, the Joint Venture has taken the decision to delay mobilisation of the drilling rig and ancillary equipment to the Namakhvani well in Georgia to allow for more robust site construction.
The poor weather experienced since site preparations first began has impeded adequate ground and road preparations to permit the safe movement of heavy equipment to the site. It was therefore decided to delay mobilisation until conditions at the site are satisfactory. Whilst mobilisation has been delayed, site preparation has continued, albeit, constrained in part by the weather conditions. The Company anticipates that spudding will now take place in early / mid April 2012.
The Company would also like to announce that preparations have begun on the 2D seismic program on Block V1b with the engagement of the Geological Institute of Israel ("GII"), who performed the initial 410 km 2D seismic program in 2009. A 265 km 2D seismic program will be undertaken on Block VIb that will endeavour to provide northern closure on the initial structures previously identified, as well as looking at identifying possible unconventional targets. The program will also include a seismic cross section over the recently drilled Mukhiani Well to assist with the potential side track option as identified through the earlier Vertical Seismic Profiling.
Recently appointed NTD Energy will be taking an active role in supervising the seismic program all the way from acquisition to processing and interpretation.
TEXAS UPDATE
Range would also like to announce that it has drilled two additional appraisal wells on North Chapman Ranch, the Smith #2 and the Albrecht wells. Both wells have been successful drilled and logged with the Smith #2 having been completed and fracture stimulated with testing imminent. The Albrecht well has been logged with early indications suggesting a 100+ ft gross pay zone, with casing now being prepared to be run prior to fracture stimulation and completion. Together, these two wells are expected to move significant reserves into the proved category, paving the way for future development.
Issue of Shares
Range Resources Ltd (the "Company") is pleased to announce the issue of the following securities:
* 27,272,727 Ordinary Fully Paid Shares to be issued upon drawdown of £3m on the Company's equity line of credit facility with First Columbus LLC * 1,998,889 Ordinary Fully Paid Shares to be issued in lieu of corporate advisory, consultancy and facilitation fees
Application will be made for the 29,271,616 new shares to be admitted to trading on the ASX and AIM. Trading in the new shares is expected to commence on or around 28 February 2012.
Following the issue of these securities the total number of securities on issueare as follows:2,121,766,648 Ordinary Fully Paid Shares (RRS) 855,166 Unlisted Options (£0.04, 30 June 2015) 7,058,824 Unlisted Options (£0.17p, 30 April 2016) 3,177,029 Unlisted Options (A$0.50, 30 June 2012) 20,890,958 Unlisted Options (A$0.1898, 30 September 2016) 15,000,000 Unlisted Options (£0.075p, 15 January 2017) 17,921,146 Class A Performance Shares 17,921,146 Class B Performance Shares 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.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 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 estimates for the North Chapman Ranch Project and East Texas Cotton Valley 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 an 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.
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.
SPE Definitions for Proved, Probable, Possible Reserves and Prospective Resources
Proved Reserves are those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations.
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 geoscience and engineering data indicate are less likely to be recoverable than Probable Reserves.
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assumingtheir discovery and development and may be sub-classified based on project maturity.
ABN 88 002 522 009www.rangeresources.com.auABN 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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