STA.L Regulatory News (STA)

6 Jan 2012 07:43

06 January 2012The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000By e-lodgementTEXAS & CORPORATE UPDATETexas

Range Resources Limited ("Range" or "the Company") is pleased to announce that the Albrecht #1 Appraisal well on the Company's North Chapman Ranch Project in Texas is currently drilling ahead at a depth of 9,150 ft. with a target depth of 14,500 ft.

The Albrecht # 1 appraisal well marks another milestone in the Company's onshore Texas drilling program, as if successful, it is anticipated to prove up reserves in the South East portion of the North Chapman Ranch license area, and support a re-classification of current Possible (P3) reserves into the Probable (P2) and Proved (P1) categories.

Following on from the Albrecht #1 well, the joint venture has the option to continue with the development of the field with a possible four-well program in 2012 under discussion among the joint venture partners.

Corporate

The Company would also like to announce that the 189,965,535 outstanding $0.05 listed options and 60 million $0.10 Director options that expired on 31 December 2011 have all been exercised, or in respect of the listed options, will otherwise be taken up by underwriters, Oracle Securities Pty Ltd.

The exercise of the Directors options and a portion of the listed options has been facilitated by a funding and share placing arrangement with the Company's brokers Old Park Lane Capital PLC ("OPL"). Pursuant to this arrangement 70 million of the new shares being issued on exercise of the options are being placed (on behalf of the option holders) with clients of OPL at $0.115 / £ 0.075. This includes 52,173,912 of the shares being issued on exercise of the Directors options (as tabled for each director below).

This full exercise of the options will provide the Company with total gross proceeds of approximately A$15.5 million.

Further details for each Director holdings are detailed below:

SIR SAM JONAH Balance Previously Held Shares 15,506,298 $0.05 Listed Options 4,135,013 $0.10 Unlisted Options 15,000,000 Number Acquired / Disposed Total Shares acquired through exercise of options 19,135,013 Total Shares disposed through finance arrangement @ (13,043,478) $0.115 Balance Now Held Shares 21,597,833 MR PETER LANDAU Balance Previously Held Shares 6,250,000 $0.05 Listed Options 5,000,000 $0.10 Unlisted Options 15,000,000 Number Acquired / Disposed Total Shares acquired through exercise of options 20,000,000 Total Shares disposed through finance arrangement @ (13,043,478) $0.115 Balance Now Held Shares 13,206,522 MR ANTHONY EASTMAN Balance Previously Held Shares 1,250,000 $0.05 Listed Options 1,000,000 $0.10 Unlisted Options 15,000,000 Number Acquired / Disposed Total Shares acquired through exercise of options 16,000,000 Total Shares disposed through finance arrangement @ (13,043,478) $0.115 Balance Now Held Shares 4,206,522 MR MARCUS EDWARDS-JONES Balance Previously Held Shares 1,125,000 $0.05 Listed Options 300,000 $0.10 Unlisted Options 15,000,000 Number Acquired / Disposed Total Shares acquired through exercise of options 15,300,000 Total Shares disposed through finance arrangement @ (13,043,478) $0.115 Balance Now Held Shares 3,381,522 Issue of Shares

Range Resources Ltd (the "Company") is pleased to announce the issue of the following securities:

* 189,965,531 Ordinary Fully Paid Shares issued upon exercise of listed options (A$0.05, 31 December 2011) * 60,000,000 Ordinary Fully Paid Shares issued upon exercise of unlisted options (A$0.10, 31 December 2011) * 4,200,000 Unlisted Options to be issued for corporate advisory fees (£ 0.075, 15 January 2017)

Application will be made for the 249,965,531 new shares to be admitted to trading on the ASX and AIM. Trading in the new shares is expected to commence on or around 11 January 2012. .

Following the issue of these securities the total number of securities on issueare as follows:2,053,237,625 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) 41,781,915 Unlisted Options (A$0.1898, 30 September 2016) 4,200,000 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 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 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 45% interest holder, Africa Oil Corp is planning to commence a two well programme in early 2012 targeting 300mmbls and 375mmbbls of best estimate Prospective Resources (100% basis) following the recent awarding of the rig contract. Site construction is complete in readiness for spudding first well January 2012. * 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.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

e: admin@rangeresources.com.au