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21 Mar 2011 07:40
21 March 2011The ManagerCompany Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge StreetSydney NSW 2000By e-lodgementTEXASUPDATENORTH CHAPMAN RANCH
International oil and gas exploration, development and production company, Range Resources Limited ("Range" or "the Company") is pleased to announce that the fracture stimulation program has recommenced on the North Chapman Ranch project, with the arrival on site of leading fracture stimulation specialists - Frac Tech.
The largest zone (second from top) on the Russell Bevly well is currently being fracture stimulated with initial results looking promising. Once successfully completed, Frac Tech will move across to the Smith #1 well and frac the upper zone, which was perforated on March 18 and this zone currently flowing at more than 1.3 MMcfd.
Frac Tech will then move off site and look to return in the comings weeks to complete the fracture stimulation of any remaining zones in the Smith and Russell Bevly wells.
Consistent with past fracture stimulations performed within the region, this program is expected to add to the success of the lower two zone frac of the Russell Bevly well and further improve flow rates and recovery, which should significantly increase cashflow from the field.
Range will provide further updates in due course.
EAST TEXAS COTTON VALLEY
As previously announced, the Company and its partners have drilled the East Texas Cotton Valley objective section to a depth of around 5,500 ft (1,680m) in its Ross 3H #1 Well at the East Texas Cotton Valley Project. Electric logs and sidewall cores confirm approximately 130 ft. of gross oil pay in the objective section. Directional drilling operations have now commenced, with the well currently drilling ahead at approximately 4,550 ft (1,390m) measured depth.
The well has a projected total hole length of 8,200ft (2,500m), including a 2,500ft (762m) horizontal section through the Cotton Valley oil reservoir. The Company will continue to provide further updates as information becomes available.
The Company would also like to announce the draw down of a further £7,255,000 of its £20,000,000 equity line facility with First Columbus LLP. Details are set out in the attached Appendix 3B.
Issue of Shares and Options
Range Resources Ltd (the "Company") is pleased to announce the issue of the following securities:
* 14,304,235 Ordinary Fully Paid Shares being issued upon exercise of listed options (A$0.05, 31 December 2011) * 42,000,000 Ordinary Fully Paid Shares being issued upon drawdown of £ 7,255,000 on the equity line of credit facility (issued at 17.3p per share) * 1,000,000 Ordinary Fully Paid Shares being issued as part of technical consulting arrangements for the Texas assets Following the issue of these securities the total number of securities on issueare as follows:1,450,724,183 Ordinary Fully Paid Shares (RRS) 219,757,426 Listed Options (RRSO) (A$0.05, 31 December 2011) 855,166 Unlisted Options (£0.04, 30 June 2015) 60,000,000 Unlisted Directors Options (A$0.10, 31 Dec 2011) 3,177,029 Unlisted Options (A$0.50, 30 June 2012)
Range has applied for admission of the new shares to trading on the ASX and AIM markets. The shares are expected to be admitted to trading on AIM on or around 28 March 2011.
Yours faithfullyPeter LandauExecutive DirectorContactsRange ResourcesPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Tavistock CommunicationsDavid Tasker Jonathan CharlesTel: +61 (8) 9388 0944 Tel: +44 (0) 20 7920 3150Em: david.tasker@ppr.com.au Em: jcharles@tavistock.co.ukRFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Broker)Stuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188Range Background
Range Resources is a dual listed oil & gas exploration company with oil & gas interests in the frontier state of Puntland, Somalia, the Republic of Georgia and Texas, USA.
* 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 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, with the prospect's project area encompassing approximately 1,570 acres including a recent oil discovery. Independently assessed gross recoverable reserves in place (on a 100% basis) of 5.4 Mmbbls of oil. * 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 drill two wells in 2011. * 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 2.045 billion barrels of oil-in-place (on a mean 100% basis). * In Trinidad, Range has entered into a HOA to acquire a 10% interest in holding companies with three onshore production licenses. Independently assessed gross recoverable 2P reserves in place of 4.8MMbls (on a 100% basis).
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").
ABN 88 002 522 009www.rangeresources.com.au
London
5th Floor, 23 King Street, St. James House, London SW1 6QYt: +44 207 389 0588, f: +44 207 930 2501
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
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