STA.L Regulatory News (STA)

26 November 2013 The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 Via E-lodgement Trinidad Update Range Resources Limited ("Range" or "the Company") is pleased toprovide an update with respect to its Trinidad operations. Range has commencedexecuting its updated field development plan to increase current oilproduction and cash flow with six wells now scheduled for drilling andcompletion. In Morne Diablo field, the Company has recently completed mastupgrades for Rig 8 and will now recommence drilling of the MD248 well to itstarget depth. Back on location, Rig 8 will deepen the well to test Lower Crusetargets after encountering strong oil shows in the shallower section,including oil to surface. The Cruse formation is the deeper producing intervalwithin the Morne Diablo field with the majority of production coming fromMiddle Cruse sands (31 wells drilled to date with total production of 3.9MMbo). Once the MD248 well is completed, the Company will look to eitherdrill adjacent offsetting locations (given the successful oil shows from theMD248 well to date) to establish formation continuity and production fromLower Cruse development wells, or move to a new location to target the Herreraformation. Initial site preparation for the Herrera location has already beencompleted. The Lower Cruse horizon remains a largely untapped reservoir below thehistoric producing Forest, Upper Cruse, and Middle Cruse horizons in the MorneDiablo Block. Significant rapid development can occur due to optimal locationwithin the main infrastructure area, and proximity to current oil fiscalizingfacilities. Presently, Range is producing from the Cruse and Forest formationsat depths between 300 feet and 4,000 feet. The Shallow and Lower Forest sandsare the most drilled formations within the Morne Diablo and South Quarryfields and contain the most well defined sand fairways. The 1P developmentprogramme utilizes the six existing drilling rigs until the end of 2015 with aplanned drilling programme of 88 development wells. A total of 65 wells are tobe drilled in the Lower Forest sands over a 24 month period. In line with the field development plan, Rig 1 will spud anadditional Lower Forest well on the Morne Diablo field, with Rig 5 to drilland complete two additional Lower Forest wells. In South Quarry field, Rig 2will target Upper Cruse and Lower Forest sands to extend known producingtrends on that block. The Lower Forest formation occurs at greater depths inthe South Quarry area, which the Company believes will yield higher initialrates and greater reserve recoveries per well. The Company is also finalising negotiations with respect to thefinancing of 2 additional drilling rigs (with technical assistance and supportcrew) to continue with Range's Herrera drilling programme, the Niko Resourcesfarm-in and the potential block being awarded in the recent bid round. Morne Diablo Waterflood Following the final receipt of approvals on the proposed waterfloodprogramme for Morne Diablo, the Company will now commence field developmentwith surface equipment and facilities installation followed by a targetedproduction rate of up to 650 bopd. Beach Marcelle Waterflood The current focus remains on expediting the ongoing engineering andsimulation phase of the waterflood programme in parallel with moving a rig tosite to begin well integrity and workover operations. The current programmewill be targeting additional fault blocks within the Beach Marcelle license,not yet previously waterflooded, yet comprising a portion of the 12.8 MMbbls(75% of Range's 1P proved undeveloped reserves). The new technical team havelooked at the data and have identified additional recoverable reserves, whichwill be formalized after full appraisal. Once production commences, thewaterflood programme is expected to add 3,000-3,500 bopd for a minimum of 8years. In addition, Range is currently assessing the potential of aturnkey facilities contractor for the Beach Marcelle waterflood project andthe use of nitrogen injection to assist in better recoveries and economics.Nitrogen gas injection is one of the most-commonly used approaches in enhancedoil recovery. The nitrogen injection increases the pressure in the oil wellsso that fossil resources can be more easily recovered and oilfield yieldssignificantly improved. The Company is also looking at deepening up to 6 wells followingthe receipt of environmental approvals earlier in the year. Successfuldeepening of existing well bores is expected to recover up to 90 MMbo per wellat approximately 80 bopd initial production, and at costs significantly lowerthan drilling and completing new wells. Issue of Shares Range Resources Limited announces the issue of the followingsecurities: 98,288,173 Ordinary Fully Paid Shares issued in lieu of debtconversion, corporate advisory and financing costs 11,666,668 Unlisted Options issued for debt conversion as peragreement (£0.015, 31 October 2016) 3,000,000 Unlisted Options issued for debt conversion as peragreement (£0.015, 30 November 2016) 1,428,571 Unlisted Options issued for debt conversion as peragreement (£0.014, 30 November 2016) 5,846,154 Unlisted Options issued for debt conversion as peragreement (£0.013, 30 November 2016) 10,267,173 Listed Options issued for corporate advisory andfinancing costs Application will be made for the 98,288,173 new shares to beadmitted to trading on ASX and AIM. Trading in the new shares is expected tocommence on or around 29 November 2013. The majority of the shares and options being issued relate to thepreviously announced loan facility arrangement with YA Global Master SPV Ltd,Hudson Bay Ltd, Empery Asset Master Limited, Hartz Capital Investments LLC andthe Cranshire Capital Master Fund. Following the issue of these securities the total number ofsecurities on issue are as follows: 3,268,629,448 Ordinary Fully Paid Shares 80,508,341 Options ($0.05, 31 January 2016) 855,166 Unlisted Options (£0.04p, 30 June 2015) 7,058,824 Unlisted Options (£0.17p, 30 April 2016) 17,921,146 Class B Performance Shares 5,180,000 Unlisted Options (£0.075p, 31 January 2017) 9,000,000 Unlisted Options (£0.125p, 31 March 2015) 15,708,801 Unlisted Options (£0.0615. 19 October 2015) 32,275,862 Unlisted Options (£0.05075, 30 Nov 2015) 5,000,000 Unlisted Options ($0.10, 31 January 2016) 5,000,000 Unlisted Options ($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, 25 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 (£0.02, 31 August 2016) 3,947,369 Unlisted Options (£0.19, 30 September 2016) 8,666,670 Unlisted Options (£0.18, 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) 17,333,336 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) Yours faithfully Peter LandauExecutive Director ContactsRange 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 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. - In the Republic of Georgia, Range holds a 45% farm-in interest in onshoreblocks VIa and VIb, covering approx. 7,000sq.km. The Company is focussing on arevised development strategy that will focus on low-cost, shallow appraisaldrilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli")coal deposit, which straddles the central sections of the Company's twoblocks, along with attracting potential farm-in partners across the licenseareas given the recent review performed across the licenses. - 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 programme over thenext 12-18 months. - 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 programme in the near term as part of itsexploration commitments on the Company's Colombian interests. Farmâ€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 (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. Gross Oil Reserves Range's Net AttributableProject 1P 2P 3P Interest 1P 2P 3P Operator Oil & NGL -mmbbls Trinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 Range Guatemala * 2.3* * 32% * 0.74* * Latin American Resources Total Oil & 17.5 22.5 25.2 17.5 20.9 25.2Liquids Gas Reserves - Bcf Georgia - CBM - - 508 45% - - 229 Strait Oil & Gas Total Gas Reserves - - 508 - - 203 * 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. Gross Oil Resources Range's Net AttributableProject Low Best/ High Interest Low Best/ High Operator Mean Mean Contingent Oil Resources - mmbbls Guatemala - 20.1 - 32% - 6.4 - Latin American Resources Total Contingent - 20.1 - - 6.4 -Resources Prospective Oil Resources - mmbbls Trinidad 8.1 40.5 81.0 100% 8.1 40.5 81.0 Range Total Prospective 8.1 40.5 81.0 8.1 40.5 81.0Resources Undiscovered Oil-In-Place - mmbbls Puntland - 16,000 - 20% - 3,200 - Horn Petroleum Georgia - 403 - 45% - 181 - Strait Oil & Gas Colombia - 7.8 - 65-75% - 5.1 - 5.8 - Petro Caribbean Undiscovered Gas-In-Place - Tcf Georgia - Conventional - 18.44 - 45% - 8.30 - Strait Oil & Gas Georgia - CBM - 3.16 - 45% - 1.42 - Strait Oil & Gas 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. 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. 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. Reserve information on the Putumayo 1 Well published by Ecopetrol 1987. The technical information included in this Announcement with respect toGeorgia was prepared by Dr. M. Arif Yukler, COO of SOG Georgia. Dr Yukler is ageologist who is a suitably qualified person with more than 38 years ofexperience 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. 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.