STA.L Regulatory News (STA)

10 June 2013 The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 TRINIDAD UPDATE Range Resources Limited ("Range" or "the Company") is pleased toprovide the following update on its Trinidad operations, with the followinghighlights: - The QUN 142 well successfully reached target depth of 1,255 ft. and is currently producing 75 bopd; - The Upper Cruse zone in the QUN 135 well has been successfully perforated and will be put into production this week, after 72 hour flow test rates of up to 150 bopd. Middle Cruse zone will form part of larger development; - Three production rigs have been placed into operation and have completed remedial work on 14 wells, which has added an estimated 95 bopd to current production; - The QUN 141 has been successfully completed and as previously announced, the logs indicated 160 ft. of gross oil pay, one of the thickest Lower Forest pay sections to be encountered to date. The well has been perforated and production is anticipated at between 75-100 bopd; - Further production of 60 bopd is expected to be added this week through the planned work over of another 15 wells, followed by an estimated additional 90 bopd through the QUN 16 well re-entry and optimization of the QUN 120 & 128 wells over the coming weeks; - The QUN 143 and 144 wells spudded and are both drilling ahead with a target depth of 1000 ft. The wells are anticipated to perform at similar initial production rates of neighbouring Lower Forest wells between 50-75 bopd; - MD 248 well drilled to 5,780 ft. encountering multiple high pressure oil and gas pays, and oil across the shakers; and - Production activities summarised above are expected to result in field production getting over 1,200 bopd with renewed momentum as Range continues with the implementation of its improved maintenance programmes and drilling inventory. Lower Forest Development Drilling The Lower Forest development continues to gain momentum with Rig 5recently completing the QUN 142 well. The well has been put onto productionand is currently flowing at 75 bopd. The drilling of QUN 141 well has been successfully completed and aspreviously announced, e-logs indicated 160 ft. of gross oil pay, one of thethickest Lower Forest pay sections encountered to date. The well has beenperforated with production commencing this week, which is anticipated to be inthe vicinity of 75-100 bopd. The Company has also successfully spudded wells QUN 143 and 144using Rigs 5 and 1, respectively. Both wells will be drilled to their targetdepth of 1,000 ft. and are expected to perform at similar initial productionrates of neighbouring Lower Forest wells between 50-75 bopd. Three production rigs have been placed into operation in the lasttwo weeks and have completed remedial work on 14 wells, which has addedapproximately 95 bopd of production. A further 15 wells are planned to beworked over this week, adding an estimated 60 bopd. In the course of the coming weeks, the company will be performingoptimization work on the QUN 120 & 128 wells, as well as QUN 16 well re-entry,which previously produced up to 145 bopd over a one week test. The QUN 16 wellwas drilled and tested in 1942 and logged thick oil sands that correlate withthe Lower Forest reservoirs being developed by the Company approximately ½mile to the west. Re-activation of the QUN 16 well will be performed using oneof the Company's production rigs. This will add new reserves and production,while further extending the Lower Forest trend to the east of the QUN 16 welland establishing a large area for low-risk infill drilling between the welland the current Lower Forest development. Middle Cruse Formation Drilling The Company has successfully perforated the Upper Cruse section ofthe QUN 135 well with tubing run and the well is currently being swabbed. Thecompany expects to put the well into production this week with flow tests ofup to 150 bopd. The Company is extremely encouraged by the results in theUpper Cruse zone of the QUN 135 well. Given timing and cost considerations, itwas considered prudent to put the Upper Cruse zone on production and commencewith drilling an adjacent well, which will target the same Middle Crusestructure from a nearby location and will have a similar profile to the QUN135 well. Further details on the planned well will be provided with theCompany's next updates. Lower Cruse Formation Drilling The MD 248 well has been drilled to 5780 ft., encountering multiplehigh pressure oil and gas pays, which indicate the presence of productive oilsands, as well as multiple oil shows across the shakers. Shortly afterencountering these hydrocarbon shows, challenging downhole conditions wereencountered which resulted in Rig 8 having to undergo temporary maintenancework before continuing drilling to ensure the successful completion of thewell. 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 RFC Ambrian Limited (Nominated Advisor) Old Park Lane Capital (Joint Broker)Stuart Laing Michael ParnesT: +61 (8) 9480 2500 T: +44 (0) 207 493 8188 Fox-Davies Capital Limited (Joint GMP Securities Europe LLP (JointBroker) Broker)Daniel Fox-Davies / Richard Hail James PopeT: +44 (0) 203 463 5000 T: +44 (0) 207 647 2800 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 TrinidadRange holds a 100% interest in holding companies with three onshore production licenses and fully operational drilling subsidiary. Independently assessed Proved (P1) reserves in place of 17.5 MMBO with 25.2 MMBO of proved, probable and possible (3P) reserves and an additional 81 MMBO of unrisked prospective resources. - In the Republic of Georgia, Range holds a 40% farm-in interest in onshore blocks VIa and VIb, covering approx. 7,000sq.km. Range completed a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2 billion barrels of undiscovered oil-in-place (on a mean 100% basis) with the first (Mukhiani-1) exploration well having spudded in July in 2011. The Company is focussing on a revised development strategy that will focus on low-cost, shallow appraisal drilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli") coal deposit, which straddles the central sections of the Company's two blocks. - In Puntland, Range holds a 20% working interest in two licenses encompassing the highly prospective Dharoor and Nugaal valleys. The operator and 60% interest holder, Horn Petroleum Corp. (TSXV:HRN) has completed two exploration wells and will continue with a further seismic and well program over the next 12-18 months. - Range holds a 25% interest in the initial Smith #1 well and a 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. Independently assessed 3P reserves in place (on a 100% basis) of 228 Bcf of natural gas, 18 MMbbl of oil and 17 MMbbl of natural gas liquids. - Range holds a 21.75% interest in the East Texas Cotton Valley Prospect in Red River County, Texas, USA, where the prospect's project area encompasses approximately 1,570 acres encompassing a recent oil discovery. The prospect has independently assessed 3P reserves in place (on a 100% basis) of 3.3mmbbls of oil. - Range is earning a 65% (option to move to 75%) interest in highly prospective licences in the Putumayo Basin in Southern Colombia. The Company will undertake a 3D seismic program in the near term as part of its exploration 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). LAR holds an 80-100% interest in two oil and gas development and exploration blocks 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 in LAR. Table of Reserves and Resources Detailed below are the estimated reserves for the Range project portfolio. Gross Oil Range's Net Attributable ReservesProject 1P 2P 3P Interest 1P 2P 3P Operator Oil & NGL(mmbls) 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(mmcf) 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 Reserves Range's Net AttributableProject Low Best/ High Interest Low Best/ High Operator Mean MeanProspective Resources 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-PlacePuntland - 16,000 - 20% - 3,200 - Horn PetroleumGeorgia - 2,045 - 40% - 818 - Strait Oil & Gas Colombia - 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 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.