STA.L Regulatory News (STA)

22 August 2013 The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 Via E-lodgement TRINIDAD UPDATE AND KEY APPOINTMENTS Range Resources Limited ("Range" or "the Company") is pleased toprovide an update with respect to its Trinidad operations and new appointmentsto management and operational team. NEW APPOINTMENTS TO MANAGEMENT AND OPERATIONAL TEAM The company is very pleased to announce appointment of Ash Manganoas the Company's Vice President in Trinidad with immediate effect. Mr Manganowill oversee Range Trinidad corporate activities and work alongside currentTrinidad Chief Operations Officer, Walter Cukavac, to ensure effectivemanagement and execution of all Range Trinidad projects, while identifying andcapitalising on additional growth opportunities for the Company. The Company is also in the process of engaging a Senior ReservoirEngineer in Trinidad to assist the operations team to expedite the waterfloodprojects, along with accurately characterising all target reservoirs to ensurethe most high-impact wells are drilled with priority. Ash Mangano, Vice President, Trinidad Range is pleased to announce that Ash Mangano, who currently servesas Business Development Manager to Range, has been appointed as the Company'sVice president in Trinidad with immediate effect. Mr Mangano has significant experience in international oil and gas,working on a diverse range of offshore and onshore projects in North America,Oceania, and the West Indies. He spent the early part of his career as adrilling engineer with Halliburton Australia and Halliburton Canada, beforeassuming a Commercial Manager role with Baker Hughes - regionally responsiblefor Australia, New Zealand, and Papua New Guinea -, and subsequently ContractManager for CB&I where he managed a US$1bn contract with Chevron Australia.Through various positions held, Mr. Mangano has assisted and successfullymanaged projects from a technical and commercial perspective, spanning the oiland gas sector, in a multitude of international environments. Mr Mangano holds an M.B.A from Oxford University, specializing incorporate finance, along with undergraduate degrees in Engineering (Honors)and Commerce from the University of Western Australia. Reservoir Engineer, Trinidad Range has also engaged a Senior Reservoir Engineer, with more than15 years' experience in enhanced oil recovery projects and reservoircharacterization in Trinidad, to work with the Exploration and Exploitationgroup in expediting the Beach Marcelle and Morne Diablo waterflood projects.The Engineer will also assist with characterising all target reservoirs toensure the most high-impact wells are drilled with priority. Both of thewaterfloods are high-impact, low-cost, and low-geological risk projects,containing 12.7 and 1.1 million barrels of 1P reserves respectively, and areestimated to add a combined 7,000 barrels of oil per day at peak production. Further Additions As Range continues the Morne Diablo extensive drilling program,gains approvals for the Morne Diablo and Beach waterflood programs, and plansthe Niko farm-in project, the Company is looking to employ additionalengineers and management to the various projects. Extensive preparations havebeen made in this regard by the employment and training of three new mudengineers (six in total), and two more engineers in the field office to assistwith reporting/drilling applications/risk assessment preparations. BID ROUND UPDATE The company is continuing to evaluate the 2013 onshore bid rounddata package and preparing its submission with respect to various licensesbeing offered, in line with the Company's strategic growth plan. The Companynotes the bid round has been extended by the Ministry of Energy of Trinidad to31 October 2013. The Company will update the market with further progress indue course. OPERATIONS UPDATE As the Company continues with the optimization work, the next 10wells have been scheduled to be accessed by the Company's production and workover rigs as well as the re-entry of the QUN16 well. Re-activation of theQUN16 well will be performed using one of the Company's production rigs. Thiswill add new reserves and production, while further extending the Lower Foresttrend to the east of the QUN16 well and establishing a large area for low riskinfill drilling between the well and the current Lower Forest development. TheCompany remains on target to have all six rigs operational in Q3 2013, withRig 6 having successfully completed annual certifications and inspections.Range has made a decision to use Rig 6 for heavy workovers of the wells inMorne Diablo as mentioned above, in order to swiftly ramp up production priorto having it converted back to a drilling rig and moved over to South Quarry,where a production rig is currently performing well workovers. The company also reports that Rig 8 has been repaired and iscurrently in the process of mobilising back to the MD248 location.Concurrently, the rig is undergoing the requisite regulatory sign off.Following approval, the rig will immediately resume drilling the MD248 well toits target depth. After completing MD248, Rig 8 will move to a new location tospud and drill a well targeting the Herrera formation. Company anticipates written approval from Petrotrin will shortly bereceived for the Morne Diablo waterflood expansion project. Upon receivingformal regulatory approval, field work will commence immediately. The projectis anticipated come into production early Q4 2014, at an estimated 750 bopd. NIKO FARM-IN UPDATE Following Company's announcement on 4 July 2013, work continuestowards the preparation of final documents for the Company's proposed farm-inon Niko's Guayaguayare Block, with final agreements expected to be signed thismonth. The Guayaguayare Block represents the largest addition to Range'sTrinidad portfolio to date, increasing the Company's acreage position by morethan 280,000 acres. With several producing fields within the block boundaries,including the Company's own Beach Marcelle Field, the Guayaguayare Blockcombines shallow drilling targets with significant exploration potential andan expansive area within a highly prolific petroleum system. With severalhigh-impact prospects already identified on the block, the Niko farm-inpresents Range with a unique opportunity to lever its fleet of drilling rigsand established operating presence in the area to grow what is rapidlybecoming a core area for the Company. Project Overview Niko currently holds shallow and deep Production Sharing Contractsfor 65% of the onshore portion and 80% of the offshore portion of the licensearea with the Guayaguayare Block comprising 280,170 shallow acres and 293,999deep acres. Trinidad's State Owned petroleum company, Petrotrin, holds theremaining balance of the interests (35% onshore and 20% offshore). The Guayaguayare Block is comprised of over 280,000 contiguous acres coveringboth onshore and offshore portions of known, productive trends along thesouthern coast of Trinidad. The Guayaguayare block is situated along trendwith the most prolific oil and gas fields in Trinidad and lies in thetransition area between the transpressional Southern basin and the extensionalColumbus basin. A regional wrench fault, and extension of the Los Bajos fault,cuts through the onshore to offshore transition zone. Traps associated withthis fault produce oil in Southwest Trinidad and off the East Coast from UpperMiocene / Pliocene Sands. The Block surrounds Range's Beach Marcelle Field, and extends southto the limits of Trinidad's territorial waters. In addition to provenTertiary-age exploration targets, the block is believed to hold significantpotential in the Cretaceous section, which has been successfully developed inthe Eastern Venezuelan basin. There are four prospective onshore fields within the Guayaguayareblock, each considered to have significant potential for oil, whilst theoffshore structural complex is believed to have significant potential forlarge gas discoveries with several large structures mapped. Peter Landau, Executive Director, commented: "We are delighted to announce Ash Mangano as the Vice President ofRange's Trinidad operations. Ash has deep knowledge of the oil and gasindustry and brings with him a wealth of experience within the industry atboth corporate and operational levels and will provide valuable experience aswe continue to grow our business. Ash will continue to drive and furtherdevelop the strategic agenda that we have set out, to generate competitivereturns for our shareholders. As the Company is in final stages of completing significant reservebased lending transaction, we have decided that now is an appropriate time forthe Company to seek additional leadership, to take the Company to the nextstage of development, where the focus will be on operating the conventionalproduction operations as well as unconventional waterflood projects in orderto unlock the enormous potential of our Trinidad assets." Yours faithfully Peter LandauExecutive Director Contacts Range Resources Limited PPR (Australia)Peter Landau David TaskerT: +61 (8) 9488 5220 T: +61 (8) 9388 0944E: plandau@rangeresources.com.au E: david.tasker@ppr.com.au GMP Securities Europe LLP RFC Ambrian Limited (Nominated Advisor)(Joint Broker) Stuart LaingRichard Greenfield / Rob Collins / T: +61 (8) 9480 2500Alexandra CarseT: +44 (0) 207 647 2800 Fox-Davies Capital Limited (Joint Old Park Lane Capital (Joint Broker)Broker) Michael ParnesDaniel Fox-Davies T: +44 (0) 207 493 8188T: +44 (0) 203 463 5000 Dahlman Rose & Company (Principal American Liaison)OTCQX International Market (U.S.)Christopher Weekes / Stephen NashT: +1 (212)-372-5766 Range Background Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil & gasexploration company with oil & gas interests in the frontier state ofPuntland, Somalia, the Republic of Georgia, Texas, USA, Trinidad and Colombia. - In Trinidad Range holds a 100% interest in holding companies with threeonshore 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. - In the Republic of Georgia, Range holds a 40% farm-in interest in onshoreblocks VIa and VIb, covering approx. 7,000sq.km. Range completed a 410km 2Dseismic program with independent consultants RPS Energy identifying 68potential structures containing an estimated 2 billion barrels of undiscoveredoil-in-place (on a mean 100% basis) with the first (Mukhiani-1) explorationwell having spudded in July in 2011. The Company is focussing on a reviseddevelopment strategy that will focus on low-cost, shallow appraisal drillingof the contingent resources around the Tkibuli-Shaori ("Tkibuli") coaldeposit, which straddles the central sections of the Company's two blocks. - In Puntland, Range holds a 20% working interest in two licenses encompassingthe highly prospective Dharoor and Nugaal valleys. The operator and 60%interest holder, Horn Petroleum Corp. (TSXV:HRN) has completed two explorationwells and will continue with a further seismic and well program over the next12-18 months. - Range holds a 25% interest in the initial Smith #1 well and a 20% interestin further wells on the North Chapman Ranch project, Texas. The project areaencompasses approximately 1,680 acres in one of the most prolific oil and gasproducing trends in the State of Texas. Independently assessed 3P reserves inplace (on a 100% basis) of 228 Bcf of natural gas, 18 MMbbl of oil and 17MMbbl of natural gas liquids. - Range holds a 21.75% interest in the East Texas Cotton Valley Prospect inRed River County, Texas, USA, where the prospect's project area encompassesapproximately 1,570 acres encompassing a recent oil discovery. The prospecthas independently assessed 3P reserves in place (on a 100% basis) of 3.3mmbblsof oil. - Range is earning a 65% (option to move to 75%) interest in highlyprospective licences in the Putumayo Basin in Southern Colombia. The Companywill undertake a 3D seismic program in the near term as part of itsexploration commitments on the Company's Colombian interests. - Range has taken a strategic stake (19.9%) in Citation Resources Limited(ASX: CTR) which holds a 70% interest in Latin American Resources (LAR). LARholds an 80-100% interest in two oil and gas development and explorationblocks in Guatemala with Canadian NI 51-101 certified proved plus probable(2P) reserves of 2.3 MMBBL (100% basis). Range also holds a 20% interest inLAR. Table of Reserves and Resources Detailed below are the estimated reserves for the Range project portfolio. All figures in Gross Oil Range's Net AttributableMMboe ReservesProject 1P 2P 3P Interest 1P 2P 3P OperatorOil & NGLTexas - NCR * 16.4 25.2 35.3 20-25% 2.2 3.4 4.8 Western GulfTexas - ETCV 1.0 1.6 3.3 22% 0.2 0.3 0.6 Crest ResourcesTrinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 RangeGuatemala ** 2.3** ** 32% ** 0.74** ** Latin American ResourcesTotal Oil & 34.9 47.0 63.8 19.9 21.3 28.9LiquidsGas ReservesTexas - NCR * 106.0 162.7 228 20-25% 11.7 18.1 25.4 Western GulfTotal Gas 106.0 162.7 228 11.7 18.1 25.4Reserves * Reserves attributable to Range's interest in the North Chapman Ranch asset,which are net of government and overriding royalties as described in theForrest Garb report. ** The reserves estimate for the Guatemalan Blocks in which LAR (and CTR) havean 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-place delineated acrossRange's portfolio of project interests. All figures in MMboe Gross Oil Resources Range's Net AttributableProject Low Best/ High Interest Low Best/ High Operator Mean MeanProspective ResourcesTrinidad 8.1 40.5 81.0 100% 8.1 40.5 81.0 RangeTotal Prospective 8.1 40.5 81.0 8.1 40.5 81.0ResourcesUndiscoveredOil-In-PlacePuntland - 16,000 - 20% - 3,200 - Horn PetroleumGeorgia - 2,045 - 40% - 818 - Strait Oil & GasColombia - 7.8 - 65-75% - 5.1-5.8 - Petro Caribbean All of the technical information, including information in relation toreserves and resources that is contained in this document has been reviewedinternally by the Company's technical consultant, Mr Mark Patterson. MrPatterson is a geophysicist who is a suitably qualified person with over 25years' experience in assessing hydrocarbon reserves and has reviewed therelease and consents to the inclusion of the technical information. The reserves estimate for the Guatemalan Blocks in which LAR (and CTR) have aninterest in is as reported by CTR. CTR has not reported 1P and 3P estimates,but Range is seeking such information from CTR for future reporting purposes. All of the technical information, including information in relation toreserves and resources that is contained in this document has been reviewedinternally by the Company's technical consultant, Mr Mark Patterson. MrPatterson is a geophysicist who is a suitably qualified person with over 25years' experience in assessing hydrocarbon reserves and has reviewed therelease and consents to the inclusion of the technical information. The reserves estimates for the 3 Trinidad blocks and update reserves estimatesfor the North Chapman Ranch Project and East Texas Cotton Valley referredabove have been formulated by Forrest A. Garb & Associates, Inc. (FGA). FGA isan international 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. RPS Group is an International Petroleum Consulting Firm with officesworldwide, who specialise in the evaluation of resources, and have consentedto the information with regards to the Company's Georgian interests in theform and context that they appear. These estimates were formulated inaccordance with the guidelines of the Society of Petroleum Engineers ("SPE"). The prospective resource estimates for the two Dharoor Valley prospects areinternal estimates reported by Africa Oil Corp, the operator of the jointventure, which are based on volumetric and related assessments by Gaffney,Cline & Associates. The TSX certified 51-101 certified reserves with respect to the Guatemalanproject are as reported by ASX listed Company Citation Resources (ASX: CTR). In granting its consent to the public disclosure of this press release withrespect 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 Contingent Resource estimate for CBM gas at the Tkibuli project is sourcedfrom the publically available references to a report by Advanced ResourcesInternational's ("ARI") report in 2009: CMM and CBM development in theTkibuli-Shaori Region, Georgia. Advanced Resources International, Inc., 2009.Prepared for GIG/Saknakhshiri and U.S. Trade and Development Agency. -.globalmethane.org/documents/ toolsres_coal_overview_ch13.pdf. Range'stechnical consultants have not yet reviewed the details of ARI's resourceestimate and the reliability of this estimate and its compliance with the SPEreporting guidelines or other standard is uncertain. Range and its JV partnerswill be seeking to confirm this resource estimate, and seek to definereserves, through its appraisal program and review of historical data duringthe next 12 months. Reserve information on the Putumayo 1 Well published by Ecopetrol 1987. SPE Definitions for Proved, Probable, Possible Reserves and ProspectiveResources Proved Reserves are those quantities of petroleum, which by analysis ofgeoscience and engineering data, can be estimated with reasonable certainty tobe commercially recoverable, from a given date forward, from known reservoirsand under defined economic conditions, operating methods, and governmentregulations. Probable Reserves are those additional Reserves which analysis of geoscienceand engineering data indicate are less likely to be recovered than ProvedReserves but more certain to be recovered than Possible Reserves. Possible Reserves are those additional reserves which analysis of geoscienceand engineering data indicate are less likely to be recoverable than ProbableReserves. 1P refers to Proved Reserves, 2P refers to Proved plus Probable Reserves and3P refers to Proved plus Probable plus Possible Reserves. Prospective Resources are those quantities of petroleum estimated, as of agiven date, to be potentially recoverable from undiscovered accumulations byapplication of future development projects. Prospective Resources have both anassociated chance of discovery and a chance of development. ProspectiveResources are further subdivided in accordance with the level of certaintyassociated with recoverable estimates assuming their discovery and developmentand may be sub-classified based on project maturity. Contingent Resources are those quantities of hydrocarbons which are estimated,on a given date, to be potentially recoverable from known accumulations, butwhich are not currently considered to be commercially recoverable. Undiscovered Oil-In-Place is that quantity of oil which is estimated, on agiven date, to be contained in accumulations yet to be discovered. Theestimated potentially recoverable portion of such accumulations is classifiedas Prospective Resources, as defined above.