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25 Feb 2011 07:47
25 February 2011The ManagerCompany Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge StreetSydney NSW 2000By e-lodgementUPDATE ON TEXAS ACTIVITIESHighlights * Commencement of Drilling at the East Cotton Valley Prospect * Successful fracture stimulation of the bottom two zones on the Russell Bevly Well
International oil and gas exploration, development and production company, Range Resources Limited ("Range" or "the Company") is pleased to announce the following updates with regards to its two Texas interests at East Cotton Valley and North Chapman Ranch.
East Texas Cotton Valley Prospect
The Company would like to announce that it has commenced drilling operations at its East Texas Cotton Valley prospect, with the arrival of the Key #66 rig to site during the week.
The Ross 3H well will be the Company's first horizontal well and first in the shallow oil prospect, which covers approximately 1,570 acres and encompasses a recent oil discovery.
The well has a projected total depth of 8,200ft (2,500m), including a 2,500ft (762m) horizontal section through the Cotton Valley oil reservoir. If successful, the Ross 3H well would provide an immediate increase to the Company's oil reserves, production and cash flow, with the impact to reserves to be reported at a later date.
On 29 June 2010, the Company announced the results of leading Petroleum Consultants, Lonquist & Co LLC's independent reserves report which has estimated the following gross commercially recoverable oil reserves from the East Texas Cotton Valley Prospect (operated by Range's private US partner):
Oil (Mmbls) Reserves Category Gross (100%) Net Attributable to Range (21.75%) Proved (1P) 1.5 0.33 Proved + Probable (2P) 2.7 0.59 Proved + Probable + Possible (3P) 5.4 1.17
If successful, the Ross 3H well will trigger a multi-well program which is anticipated to move Possible Reserves into the Probable and Proved categories.
North Chapman Ranch - Russel Bevly Well Fracture Stimulation
The Company would also like to announce that the lower two pay zones in its Russel Bevly #1 well have been successfully fracture stimulated The frac team has moved to another site and will return to Russel Bevly within the next three weeks to complete fracture stimulation of the upper two zones.
This has allowed the Company to test and clean the lower zones, with the well currently flowing in line with expectations, based on successful frac jobs that have been performed in the region. The Company will look to announce the achieved flow rates from the lower two zones once production has been stabilised.
Range's Executive Director Peter Landau commented, "The recent activities and anticipated results in the Company's Texas interests will further strengthen the Company's reserves, production and cashflows at the same time as the Company embarks on its exciting exploration program in both Georgia and Puntland."
Issue of Shares and Options
Range Resources Ltd (the "Company") is pleased to announce the issue of the following securities:
* 21,744,486 Ordinary Fully Paid Shares being issued upon exercise of listed options (A$0.05, 31 December 2011) * 35,714,286 Ordinary Fully Paid Shares being issued upon drawdown of £ 5,000,000 on the equity line of credit facility * 3,934,511 Ordinary Fully Paid Shares being issued upon the exercise of unlisted options (A$0.05, 31 March 2015) * 4,565,489 Ordinary Fully Paid Shares being issued upon the exercise of unlisted options (£0.04, 30 June 2015) Following the issue of these securities the total number of securities on issueare as follows:1,393,419,948 Ordinary Fully Paid Shares (RRS) 23,4061,661 Listed Options (RRSO) (A$0.05, 31 December 2011) 855,166 Unlisted Options (£0.04, 30 June 2015) 60,000,000 Unlisted Directors Options (A$0.10, 31 Dec 2011) 3,177,029 Unlisted Options (A$0.50, 30 June 2012)
Range has applied for admission of the new shares to trading on the ASX and AIM markets. The shares are expected to be admitted to trading on AIM on or around 4 March 2011.
Yours faithfullyPeter LandauExecutive DirectorContactsRange ResourcesPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Tavistock CommunicationsDavid Tasker Jonathan CharlesTel: +61 (8) 9388 0944 Tel: +44 (0) 20 7920 3150Em: david.tasker@ppr.com.au Em: jcharles@tavistock.co.ukRFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Broker)Stuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188Range Background
Range Resources is a dual listed oil & gas exploration company with oil & gas interests in the frontier state of Puntland, Somalia, the Republic of Georgia and Texas, USA.
* Range holds a 25% interest in the initial Smith #1 well and 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. Drilling of the first well has resulted in a commercial discovery with independently assessed gross recoverable reserves in place (on a 100% basis) of 240 Bcf of natural gas, 18 mmbbls of oil and 17 mmbbls of natural gas liquids. * Range holds a 21.75% interest in the East Texas Cotton Valley Prospect in Red River County, Texas, USA, with the prospect's project area encompassing approximately 1,570 acres including a recent oil discovery. Independently assessed gross recoverable reserves in place (on a 100% basis) of 5.4 Mmbbls of oil. * In Puntland, Range holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys with the operator and 45% interest holder Africa Oil Corp planning to drill two wells in 2011. * In the Republic of Georgia, Range holds a 40% farm-in interest in onshore blocks VIa and VIb, covering approx. 7,000sq.km. Range has recently completed a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of oil-in-place (on a mean 100% basis). * In Trinidad, Range has entered into a HOA to acquire a 10% interest in holding companies with three onshore production licenses. Independently assessed gross recoverable 2P reserves in place of 4.8MMbls (on a 100% basis).
The reserves estimate for the North Chapman Ranch Project and East Texas Cotton Valley has been formulated by Lonquist & Co LLC who are Petroleum Consultants based in the United States with offices in Houston and Austin. Lonquist provides specific engineering services to the oil and gas exploration and production industry, and consults on all aspects of petroleum geology and engineering for both domestic and international projects and companies. Lonquist & Co LLC have consented in writing to the reference to them in this announcement and to the estimates of oil, natural gas and natural gas liquids provided. These estimates were formulated in accordance with the guidelines of the Society of Petroleum Engineers ("SPE"). The SPE Reserve definitions can be found on the SPE website at spe.org.
The reserves estimates for the 3 Trinidad blocks referred above have been formulated by Forrest A. Garb & Associates, Inc. (FGA). FGA is an international petroleum engineering and geologic consulting firm staffed by experienced engineers and geologists. Collectively FGA staff has more than a century of worldâ€"wide experience. FGA have consented in writing to the reference to them in this announcement and to the estimates of oil and natural gas liquids provided. The definitions for oil and gas reserves are in accordance with SEC Regulation Sâ€"X.
RPS Group is an International Petroleum Consulting Firm with offices worldwide, who specialise in the evaluation of resources, and have consented to the information with regards to the Company's Georgian interests in the form and context that they appear. These estimates were formulated in accordance with the guidelines of the Society of Petroleum Engineers ("SPE").
ABN 88 002 522 009www.rangeresources.com.au
London
5th Floor, 23 King Street, St. James House, London SW1 6QYt: +44 207 389 0588, f: +44 207 930 2501
Australia
Ground Floor, 1 Havelock Street, West Perth WA 6005, Australiat: +61 8 9488 5220, f: +61 8 9324 2400
e: admin@rangeresources.com.au
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