21 Sep 2009 08:04
21 September 2009
Company AnnouncementsAustralian Securities ExchangeExchange Plaza2 The EsplanadePERTH WA 6000 Range acquires interest in a strategic US asset Highlights:
* Range acquires a 25% interest in well known Texas oil and gas field, with
drilling at project already underway, * Low entry cost - To fund drilling of Smith #1 Well (AUD$1m) and in the event of a discovery fund costs to production (AUD$350,000), * Significant infrastructure in place and timing to first sales will be
approximately three months upon a discovery being made, with an estimated
payback period of 8 - 10 months.
Australian based oil and gas company Range Resources Limited ("Range" or "the Company") continues to enhance its international oil andgas portfolio, reaching agreement with U.S. based private oil and gas companyCrest Resources Inc ("Crest") to acquire a 25% working interest in the NorthChapman Ranch project located in Nueces County, Texas.
The project area encompasses approximately 1,280 acres in one of the most prolific oil and gas producing trends in the State of Texas.
Smith #1 Well - Currently Drilling
Range will participate in the Smith #1 well, which has already commenceddrilling and is expected to confirm an apparent discovery made by Crest and itspartners earlier this year. The well is currently at 8,000 feet with a targetdepth of 14,000 feet. Range anticipates target depth being achieved in the nextthree weeks and will provide updates to the market as they are received.
North Chapman Ranch Background
North Chapman Ranch is situated within the prolific Frio producing trend justnorth of the Chapman Ranch in the Mobil David and Doughty Fields. The MobilDavid field was discovered in 1965 when Mobil drilled the Chapman #1B andcompleted the well in the Laureles Sand (now the Howell Hight). Since then, anestimated 250 billion cubic feet of natural gas and more than 10 millionbarrels of oil have been produced from this field, primarily from the Andersonsandstone. Recently, several operators in the area have been successfullydeveloping the deeper Howell Hight formation, with some wells exhibiting flowrates in the 6-9 million cubic feet per day range. The currently drillingSmith #1 well is programmed to test the Howell Hight formation in a locationnear that of the recently drilled Zdansky #1 well. Crest was unable to completethe Zdansky well due to hole problems. If successful, the Smith #1 well could trigger significant oil and gasproduction and development drilling with very attractive economics, at a timewhen exploration and development costs in the U.S. have dropped dramatically.In addition, the favorable operating and regulatory environment in Texas servesto mitigate perceived political risk associated with Range's otherinternational exploration projects.
Benefits for Range
The cost for Range is AUD$1m which includes the cost of the current well. Inthe event of a discovery, costs to production will be approximatelyAUD$350,000. The low cost relates to the significant infrastructure (eg.pipelines) already in place. Timing to first sales will be approximately threemonths upon a discovery being made with an estimated payback period of 8 - 10months. With winter approaching in the US, timing may be expedited withincreased gas prices. Range can limit its exposure to the Smith #1 well orcontinue with its participation interest in an exploration area which istargeting a minimum of 80 BCF of gas (undiscovered gas in place).
Moving Forward
With Range anticipating that Africa Oil and the Puntland Government will agree to the proposed drilling programme on the onshore Puntland oil & gas blocks shortly, the recently acquired Georgian blocks being prepared for a seismic survey and the Smith #1 well about half way to target depth, the Company is excited with its portfolio and the activity planned for the coming months.
The Company received over subscriptions with its latest placement and will accept a further AUD$2.2m as per the attached Appendix 3B.
Range Projects: please refer to the website for diagrams.
End
For further information please contact:
Range Resources LimitedPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonProfessional Public Relations Conduit PRDavid Tasker Jonathan Charles
Tel: +61 (8) 9388 0944/ +61 433 112 936 Tel: + 44 (0) 20 7429 6666 Em: david.tasker@ppr.com.au
Em: jonathan@conduitpr.com
RFC Corporate Finance (Nominated Advisor) Fox-Davies Capital (Broker) Stuart Laing
Daniel Fox-DaviesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 936 5200\* The reference to the undiscovered gas in place estimate was provided byCrestResources Inc., reviewed by Texas Energy Advisers LLC(Range Consultant) whohaveover 25 years of relevant experience in the oil and gas sector and found tobe consistent with the SPE Guidelines. Rule 2.7, 3.10.3, 3.10.4, 3.10.5 Appendix 3B New issue announcement, application for quotation of additional securities and agreement
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.
Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.Name of entity RANGE RESOURCES LIMITED ABN 88 002 522 009
We (the entity) give ASX the following information.
Part 1 - All issues
You must complete the relevant sections (attach sheets if there is not enough space).
1 +Class of +securities issued Ordinary Fully Paid Shares
or to be issued Listed Options ($0.05 cents, 31 December 2011)
2 Number of +securities issued 65,113,650 Ordinary Fully Paid Shares
or to be issued (if known) or
maximum number which may be 65,113,650 Listed Options issued ($0.05 cents, 31 December 2011) 3 Principal terms of the
+securities (eg, if options, 65,113,650 Ordinary Fully Paid Shares
exercise price and expiry date; if partly paid +securities, the amount 65,113,650 Listed Options ($0.05 cents, 31 December 2011) outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion) 4 Do the +securities rank Yes equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: * the date from which they do * the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment * the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
5 Issue price or consideration 65,113,650 Ordinary Fully Paid
Shares to be issued in a Placement to Sophisticated and Institutional Investors at 3.5 cents per share with a free attaching Listed Option (5 cents, 31 Dec 2011) raising $2.2m to fund the acquisition of the strategic US Oil & Gas Project, Georgian operations Puntland operations, issue costs and working capital. 6 Purpose of the issue 65,113,650 Ordinary Fully Paid Shares to be issued in a Placement
(If issued as consideration to Sophisticated and Institutional
for the acquisition of Investors at 3.5 cents per share assets, clearly identify with a free attaching Listed Option those assets) (5 cents, 31 Dec 2011) raising $2.2m to fund the acquisition of the strategic US Oil & Gas Project, Georgian operations Puntland operations, issue costs and working capital. 7 Dates of entering On or about 21 Sep 2009 +securities into uncertificated holdings or despatch of certificates Number +Class 8 Number and +class of 563,269,409 Ordinary fully paid shares (RRS) all +securities quoted
on ASX (including the 64,901,186 Listed Options (RRSOA)(A$1.00, 1 October 2010)
securities in clause 2 if applicable) 363,822,688 Listed Attaching Options(RRSO) ($A0.05, 31 December 2011) Number +Class 9 Number and +class of 3,177,029 Unlisted Options (A$0.50, 30 June 2012) all +securities not quoted on ASX (including the securities in clause 2 if applicable) 10 Dividend policy (in the Not applicable case of a trust, distribution policy) on the increased capital (interests)
Part 2 - Bonus issue or pro rata issue
11 Is security holder approval N/A required? 12 Is the issue renounceable or N/A non-renounceable? 13 Ratio in which the +securities N/A will be offered 14 +Class of +securities to which N/A the offer relates 15 +Record date to determine N/A entitlements 16 Will holdings on different N/A registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements N/A in relation to fractions 18 Names of countries in which the N/A entity has +security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of N/A acceptances or renunciations 20 Names of any underwriters N/A 21 Amount of any underwriting fee N/A or commission 22 Names of any brokers to the N/A issue 23 Fee or commission payable to the N/A broker to the issue 24 Amount of any handling fee N/A payable to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on N/A +security holders' approval, the date of the meeting 26 Date entitlement and acceptance N/A form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued N/A options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin N/A (if applicable) 29 Date rights trading will end (if N/A applicable) 30 How do +security holders sell N/A their entitlements in full through a broker? 31 How do +security holders sell N/A part of their entitlements through a broker and accept for the balance? 32 How do +security holders dispose N/A of their entitlements (except by sale through a broker)? 33 +Despatch date N/A
Part 3 - Quotation of securities
You need only complete this section if you are applying for quotation ofsecurities34 Type of securities (tick one) (a) Securities described in Part 1 (b) All other securities Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities
Entities that have ticked box 34(a)
Additional securities forming a new class of securities
Tick to indicate you are providing the information or documents 35 If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders 36 If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over 37 A copy of any trust deed for the additional +securities
Entities that have ticked box 34(b)
38 Number of securities for which +quotation is sought 39 Class of +securities for which quotation is sought 40 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: * the date from which they do * the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment * the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number +Class 42 Number and +class of all +securities quoted on ASX (including the securities in clause 38)
Quotation agreement
1 +Quotation of our additional +securities is in ASX's absolute discretion. ASX may quote the +securities on any conditions it decides.
2 We warrant the following to ASX.
-- The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.
-- There is no reason why those +securities should not be granted +quotation.
-- An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.
Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty
-- Section 724 or section 1016E of the Corporations Act does not apply to anyapplications received by us in relation to any +securities to be quoted andthat no-one has any right to return any +securities to be quoted under sections737, 738 or 1016F of the Corporations Act at the time that we request that the+securities be quoted.
-- We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the +securities to be quoted, it has been provided at the time that we request that the +securities be quoted.
-- If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted.
3 We will indemnify ASX to the fullest extent permitted by law in respect ofany claim, action or expense arising from or connected with any breach of thewarranties in this agreement.
4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.
Sign here:Date: 21 September 2009Print name: Jane Flegg - Company Secretary
+ See chapter 19 for defined terms.
1/1/2003 Appendix 3B Page 7
vendor