STA.L Regulatory News (STA)

21 February 2014 By E-Lodgement ASX Code: RRS and AIM Code: RRL Range Resources ("Range" or "the Company") Trinidad Operations Update The Company is pleased to provide an update on operations at itsTrinidad assets with the following highlights: - Drilling rigs 2, 5 and 8 resume operations: - QUN 148 well drilled to a target depth of 691 feet in the Lower Forest horizon. Oil shows were observed while drilling and well log analysis indicates 30 feet of oil sands present. The well is currently scheduled to be perforated and completed for production. The drilling rig will now move to the next QUN 149 well location. - QU 452 well drilled to a target depth of 1,814 feet. The well was logged indicating 80 feet of gross oil sands. The Company will now drill the well deeper until the base of the reservoir sands is reached. QU 452 is the first well to be drilled in South Quarry since 2007. The well is expected to extend the field's Middle Cruse producing trend into new fault blocks. A successful well will result in additional Proved Reserves and future drilling locations. - MD 248 well is being prepared for side tracking from 3,234 feet targeting the Lower Cruse formation. - Zero safety incidents since September 2013, approaching sixmonths LTI-free operations - The maintenance programme for light rig 1 and heavy rigs 6 & 7continues as planned Rory Scott Russell, CEO, commented: "Having reviewed our Trinidad operations, I am pleased to see thatour drilling services company is now back to satisfactory operational levels,with key rigs up and running and drilling wells safely and efficiently. I haveconfidence in our operations and in the team on the ground who will continueto work on addressing production decline and unlocking value via ourdevelopment activities." Yours faithfully Rory Scott RussellChief Executive Officer Contacts Range Resources Limited Buchanan (Financial PR - UK)Rory Scott Russell Tim Thompson / Helen Chan T: +44 (0) 20 7466 5000 E: rangeresources@buchanan.uk.com GMP Securities Europe LLP (Broker) RFC Ambrian Limited (Nominated Advisor)Richard Greenfield / Rob Collins / Stuart LaingAlexandra Carse T: +61 (8) 9480 2500T: +44 (0) 207 647 2800 PPR (Financial PR - Australia) Dahlman Rose & Company (Principal American Liaison)David Tasker OTCQX International Market (U.S.)T: +61 (8) 9388 0944 Christopher Weekes / Stephen NashE: david.tasker@ppr.com.au T: +1 (212)-372-5766 Range Background Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil &gas exploration company with oil & gas interests in Trinidad; Puntland,Somalia; the Republic of Georgia; Guatemala; Texas, USA, and Colombia. - In Trinidad Range holds a 100% interest in holding companies withthree onshore production licenses and fully operational drilling subsidiary.Independently assessed Proved (P1) reserves in place of 17.5 MMBO with 25.2MMBO of proved, probable and possible (3P) reserves and an additional 81 MMBOof unrisked prospective resources. Range also has a farm in with NikoResources giving it exposure to circa 280,000 acres of prospective onshore andoffshore acreage. - In the Republic of Georgia, Range holds a 45% farm-in interest inonshore blocks VIa and VIb, covering approx. 7,000sq.km. The Company isfocussing on a revised development strategy that will focus on low-cost,shallow appraisal drilling of the contingent resources around theTkibuli-Shaori ("Tkibuli") coal deposit, which straddles the central sectionsof the Company's two blocks, along with attracting potential farm-in partnersacross the license areas given the recent review performed across thelicenses. - In Puntland, Range holds a 20% working interest in two licensesencompassing the highly prospective Dharoor and Nugaal valleys. The operatorand 60% interest holder, Horn Petroleum Corp. (TSXV:HRN) has completed twoexploration wells and will continue with a further seismic and well programover the next 12-18 months. - Range is earning a 65% (option to move to 75%) interest in highlyprospective licences in the Putumayo Basin in Southern Colombia. Farm–ininterest from a number of parties has been received and preparations for theseismic programme will be initiated subject to further financing becomingavailable. - Range has taken a strategic stake in Citation Resources Limited (ASX: CTR)and Latin American Resources (LAR) which hold interest in two oil and gasdevelopment and exploration blocks in Guatemala with Canadian NI 51-101certified proved plus probable (2P) reserves of 2.3 MMBBL (100% basis). Rangehas a direct and indirect 32% interest in the Guatemalan Project. Table of Reserves and Resources Detailed below are the estimated reserves for the Range projectportfolio. Gross Oil Reserves Range's Net AttributableProject 1P 2P 3P Interest 1P 2P 3P OperatorOil & NGL -mmbblsTrinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 RangeGuatemala * 2.3* * 32% * 0.74* * Latin American ResourcesTotal Oil & 17.5 22.5 25.2 17.5 20.9 25.2LiquidsGas Reserves -BcfGeorgia - CBM - - 508 45% - - 229 Strait Oil & GasTotal Gas - - 508 - - 203Reserves * The reserves estimate for the Guatemalan Blocks in which LAR (andCTR) have an interest in is as reported by CTR. CTR has not reported 1P and 3Pestimates, but Range is seeking such information from CTR for future reportingpurposes. Detailed below are the estimated resources and oil-in-placedelineated across Range's portfolio of project interests. Gross Oil Resources Range's Net AttributableProject Low Best/ High Interest Low Best/ High Operator Mean MeanContingent Oil Resources - mmbblsGuatemala - 20.1 - 32% - 6.4 - Latin American ResourcesTotal Contingent - 20.1 - - 6.4 -ResourcesProspective Oil Resources - mmbblsTrinidad (BM & MD) 8.1 40.5 81.0 100% 8.1 40.5 81.0 RangeTrinidad - Niko JV 20.3 101.5 203.0 40%* 8.1 40.6 81.2 RangeonshoreTrinidad - Niko JV 6.6 33.0 66.0 32.5%* 2.1 10.7 21.5 RangeoffshoreTotal Prospective 35.0 175.0 350.0 18.3 91.8 183.7ResourcesUndiscovered Oil-In-Place - mmbblsPuntland - 16,000 - 20% - 3,200 - Horn PetroleumGeorgia - 403 - 45% - 181 - Strait Oil & GasColombia - 7.8 - 65-75% - 5.1- - Petro 5.8 CaribbeanUndiscovered Gas-In-Place - TcfGeorgia - - 18.44 - 45% - 8.30 - Strait Oil &Conventional GasGeorgia - CBM - 3.16 - 45% - 1.42 - Strait Oil & Gas *Range's interest in the Niko JV resources are subject tocompleting its earn-in obligations. With the exception of Guatemala, all of the technical information,including information in relation to reserves and resources that is containedin this document has been reviewed internally by the Company's technicaladvisor, Mr Mark Patterson. Mr Patterson is a petroleum geologist andgeophysicist who is a suitably qualified person with over 30 years' experiencein assessing hydrocarbon reserves and has reviewed the release and consents tothe inclusion of the technical information. The reserves estimates for the 3 Trinidad blocks have beenformulated by Forrest A. Garb & Associates, Inc. (FGA). FGA is aninternational petroleum engineering and geologic consulting firm staffed byexperienced engineers and geologists. Collectively FGA staff has more than acentury of world–wide experience. FGA have consented in writing to thereference to them in this announcement and to the estimates of oil and naturalgas liquids provided. The definitions for oil and gas reserves are inaccordance with SEC Regulation S–X an in accordance with the guidelines ofthe Society of Petroleum Engineers ("SPE"). The SPE Reserve definitions can befound on the SPE website at spe.org. In granting its consent to the public disclosure of this pressrelease with respect to the Company's Trinidad operations, Petrotrin makes norepresentation or warranty as to the adequacy or accuracy of its contents anddisclaims any liability that may arise because of reliance on it. The TSX certified 51-101 certified reserves with respect to theGuatemalan project are as reported by ASX listed Company Citation Resources(ASX: CTR). CTR has not reported 1P and 3P estimates, but Range is seekingsuch information from CTR for future reporting purposes. The prospective resource estimates for the two Dharoor Valleyprospects are internal estimates reported by Africa Oil Corp, the operator ofthe joint venture, which are based on volumetric and related assessments byGaffney, Cline & Associates. The technical information included in this Announcement withrespect to Georgia was prepared by Dr. M. Arif Yukler, COO of SOG Georgia. DrYukler is a geologist who is a suitably qualified person with more than 38years of experience in the international oil & gas industry, and in assessinghydrocarbon reserves. Dr Yukler has advised companies and government entitiesof all size from small caps to super-majors, as well as state regulatoryauthorities on the management of resources and exploration areas. Dr. Yuklerhas reviewed the release and consents to the inclusion of the technicalinformation with respect to Georgia. Reserve information on the Putumayo 1 Well published by Ecopetrol1987. SPE Definitions for Proved, Probable, Possible Reserves andProspective Resources Proved Reserves are those quantities of petroleum, which byanalysis of geoscience and engineering data, can be estimated with reasonablecertainty to be commercially recoverable, from a given date forward, fromknown reservoirs and under defined economic conditions, operating methods, andgovernment regulations. Probable Reserves are those additional Reserves which analysis ofgeoscience and engineering data indicate are less likely to be recovered thanProved Reserves but more certain to be recovered than Possible Reserves. Possible Reserves are those additional reserves which analysis ofgeoscience and engineering data indicate are less likely to be recoverablethan Probable Reserves. 1P refers to Proved Reserves, 2P refers to Proved plus ProbableReserves and 3P refers to Proved plus Probable plus Possible Reserves. Prospective Resources are those quantities of petroleum estimated,as of a given date, to be potentially recoverable from undiscoveredaccumulations by application of future development projects. ProspectiveResources have both an associated chance of discovery and a chance ofdevelopment. Prospective Resources are further subdivided in accordance withthe level of certainty associated with recoverable estimates assuming theirdiscovery and development and may be sub-classified based on project maturity. Contingent Resources are those quantities of hydrocarbons which areestimated, on a given date, to be potentially recoverable from knownaccumulations, but which are not currently considered to be commerciallyrecoverable. Undiscovered Oil-In-Place is that quantity of oil which isestimated, on a given date, to be contained in accumulations yet to bediscovered. The estimated potentially recoverable portion of suchaccumulations is classified as Prospective Resources, as defined above.