STA.L Regulatory News (STA)

19 December 2013 The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 Range to commence Beach Marcelle work program Range Resources Limited ("Range" or "the Company") is pleased toannounce that it has received Certificate of Environmental Clearance ("CEC")approvals from the regulatory authorities for the drilling of a total of 40wells, 8 well deepenings and commencement of the enhanced recovery waterfloodprogram ("EOR") on its Beach Marcelle license in Trinidad. This is asignificant milestone for the Company and now paves the way for final projectplans for the development / deepening wells and EOR programs to be submittedto the regulatory authorities for final formal approval with operationsscheduled to commence Q1 2014. Whist awaiting the CEC approvals, the Company has completed theBeach project development plans and recently presented its waterflooddevelopment program to Petrotrin. As previously announced, Range is alsoassessing the potential use of nitrogen injection to further assist recoveriesand production rates. Nitrogen injection would increase production rates andrecoveries from the field whole leading to additional increases in ProvedReserves. Following receipt of the formal approvals, the Company willimmediately commence project development in line with the work programoutlined below. As part of the recently completed Field Development Plan, theCompany's principal development strategy will be to convert undeveloped ProvedReserves into production and cash flow while seeking to add new ProvedReserves through the upgrade of existing Probable and Possible Reservesthrough further drilling and testwork. The strategy will also target theexploitation of undeveloped Proved Reserves associated with Secondary Recoveryprojects such as the Beach Marcelle waterflood program. Once production andcash flow from development of Range's Proved Reserves have been increased,field extensions, exploratory prosects and unconventional resource potentialwill be tested. Development opportunities in the Beach Marcelle field includeinfill drilling within under-drilled fault blocks, in addition towaterflooding for increased oil recovery. With 75% (12.8 MMbbls) of Range's 1P undeveloped Proved Reservesassociated with the Beach Marcelle waterflood project, the current focusremains on expediting the on-going engineering and simulation phase of thewaterflood program, in parallel with moving a rig to the field to begin wellintegrity and workover operations. The Company's expanded technical team hasexamined the available data and have identified additional potentialrecoverable volumes that the Company will seek to certify as reserves afterfull appraisal. Once production commences, the waterflood program is targetedto add 3,000-3,500 bopd for a minimum of 8 years. Beach Marcelle Overview The Beach Marcelle field comprises 3,964 acres and falls within theGuayaguayare subâ€basin that has numerous oilfields around its rim, includingthe Navette and Goudron fields and the offshore Galeota and Samaan fields. The first well in the Beach field was drilled in May 1902. Acomprehensive field map was compiled by Texaco and to date approximately 230wells have been drilled on the license. Previous owners had maintained a wellordered database and Range has access to this comprehensive set of basicsubsurface data. Oil gravities within Beach average 34 degrees API andcumulative oil production to date has been 30.4 MMbo at an average of 125,000bbls /well. The main producing horizons are the Upper, Middle and Lower GrosMorne formation (which are geologically equivalent to the Forest formation inMorne Diablo and South Quarry). They range in depths from 300 ft. to 5000 ft.Oil is currently produced from eleven wells at a rate of roughly 22 bopd perwell. Waterflood (Secondary Recovery) Program Range's waterflood program in the Beach Marcelle field builds upon3 previously successful, but prematurely abandoned waterflood programsperformed by Texaco in the 1950's. Texeco's programs were used as analogs forthe Range proposed program. It is expected that with the use of modernreservoir and waterflood simulation technology, Range will be able to moreefficiently sweep the remaining recoverable reserves. The program will also be targeting additional fault blocks withinthe Beach Marcelle license not yet previously waterflooded, yet comprising aportion of the 12.8 MMbbls of 1P undeveloped Proved Reserves. Conventional Program The Company is also evaluating the option to deepen up to 8 wellsfollowing the receipt of the CEC, along with drilling of up to an additional40 wells which could include in-fill / step out and further appraisal wells.Successful deepening of existing well bores is expected to recover up to 90MMbo per well at approximately 80 bopd per well of initial production, and atcosts significantly lower than drilling and completing new wells. As anexample, a re-entry and deepening of the GY 185 well is expected to yieldaround 90 MMbo, while offset PUD locations to the north, northeast, andnorthwest are predicted to yield 43-54 MMbo as a result of partial drainage inthat fault block. Issue of Shares Range Resources Limited announces the issue of the followingsecurities: 10,000,000 Ordinary Fully Paid Shares issued in lieu of financing fees 2,000,000 unlisted options ($0.0321, 11 December 2016) in lieu financing fees Application will be made for the 10,000,000 new shares to beadmitted to trading on the ASX and AIM. Trading in the new shares is expectedto commence on or around 24 December 2013. Following the issue of these securities the total number ofsecurities on issue are as follows: 3,278,629,448 Ordinary Fully Paid Shares (RRS) 80,508,341 Listed Options ($0.05, 31 January 2016) 855,166 Unlisted Options (£0.04, 30 June 2015) 7,058,824 Unlisted Options (£0.17p, 30 April 2016) 5,180,000 Unlisted Options (£0.075p, 31 January 2017) 9,000,000 Unlisted Options (£0.125p, 31 March 2015) 17,921,146 Class B Performance Shares 15,708,801 Unlisted Options (£0.0615, 19 October 2015) 32,275,862 Unlisted Options (£0.05075, 30 November 2015) 5,000,000 Unlisted Options (A$0.10, 31 January 2016) 5,000,000 Unlisted Options (A$0.06, 10 February 2016) 146,533,850 Unlisted Options (£0.04, 30 April 2016) 5,000,000 Unlisted Options (£0.037, 11 July 2016) 476,190 Unlisted Options (£0.021, 27 July 2016) 952,381 Unlisted Options (£0.021, 29 July 2016) 6,714,284 Unlisted Options (£0.021, 31 August 2016) 9,000,000 Unlisted Options (£0.020, 31 August 2016) 3,947,369 Unlisted Options (£0.019, 30 September 2016) 8,666,670 Unlisted Options (£0.018, 30 September 2016) 694,445 Unlisted Options (£0.018, 31 October 2016) 2,205,885 Unlisted Options (£0.017, 31 October 2016) 1,250,000 Unlisted Options (£0.016, 31 October 2016) 17,333,334 Unlisted Options (£0.015, 31 October 2016) 3,000,000 Unlisted Options (£0.015, 30 November 2016) 1,428,571 Unlisted Options (£0.014, 30 November 2016) 5,846,154 Unlisted Options (£0.013, 30 November 2016) 2,000,000 Unlisted Options ($0.0321, 11 December 2016) 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 Broker) Old Park Lane Capital (Joint Broker)Daniel Fox-Davies / Richard Hail Michael ParnesT: +44 (0) 203 463 5000 T: +44 (0) 207 493 8188 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. 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 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 10% 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 Operator Oil & NGL Texas - NCR * 16.4 25.2 35.3 20-25% 2.2 3.4 4.8 Western Gulf Texas - ETCV 1.0 1.6 3.3 22% 0.2 0.3 0.6 Crest Resources Trinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 Range Guatemala ** 2.3** ** 21-24% ** 0.48-0.55** ** Latin American Resources Total Oil & 34.9 47.0 63.8 19.9 21.3 28.9Liquids Gas Reserves Texas - NCR * 106.0 162.7 228 20-25% 11.7 18.1 25.4 Western Gulf Total 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 Resources Trinidad (BM & MD) 8.1 40.5 81.0 100% 8.1 40.5 81.0 Range Trinidad - Niko JV 20.3 101.5 203.0 40%* 8.1 40.6 81.2 Rangeonshore Trinidad - Niko JV 6.6 33.0 66.0 32.5%* 2.1 10.7 21.5 Rangeoffshore Total Prospective 35.0 175.0 350.0 18.3 91.8 183.7Resources Undiscovered Oil-In-Place Puntland - 16,000 - 20% - 3,200 - Horn Petroleum Georgia - 2,045 - 40% - 818 - Strait Oil & Gas Colombia - 7.8 - 65-75% - 5.1 - 5.8 - Petro Caribbean *Range's interest in the Niko JV resources are subject to completing itsearn-in obligations. With the exception of Guatemala, all of the technical information, includinginformation in relation to reserves and resources that is contained in thisdocument has been reviewed internally by the Company's technical advisor, MrMark Patterson. Mr Patterson is a petroleum geologist and geophysicist who isa suitably qualified person with over 30 years' experience in assessinghydrocarbon reserves and has reviewed the release and consents to theinclusion 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. 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 worldâ€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 Sâ€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.