Trinidad and Texas Update

16 September 2013The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 Via E–lodgement Trinidad Introduces New Positive Fiscal Incentives Range Resources Limited ("Range" or "the Company") is pleased toprovide an update with respect to newly proposed budget incentives for oil andgas companies introduced by the Minister of Finance and Economy of Trinidadand Tobago in the 2014 Budget Statement to Parliament on 9 September 2013.These newly proposed budget incentives, which especially reward companies withaccelerated development and exploration programs, are expected to have asignificant positive impact on Range's returns from its proposed productionexpansion plans. In the last few years, there has been a significant increase inexploration and production activity in the oil and gas sector in Trinidad andTobago. This trend is expected to continue, with a key driver being theGovernment's introduction of a progressive policy with regards to the fiscalregime. The reforms are aimed at incentivising companies that invest inexploration and production, thus ensuring that Trinidad and Tobago's upstreamsector becomes more competitive and that activity levels are increased in theregion. The heightened level of activity is impacting positively on theenergy sector in general, and will serve to arrest the decline in oilproduction in the coming years. For the month of August, oil production inTrinidad was the highest it has been for the year of 2013 and averaged 83,300barrels of oil per day. The new incentives allow for further accelerated capital deductionsthan the past, which are summarized in the table below with regards to thecapital allowances: EXPLORATIONCURRENT PROPOSED (effective 1 January 2014)Tangible Assets Intangible Assets 2014 - 2017 2018 + Tangible & Tangible & Intangible Assets Intangible Assets- Initial - Initial Allowance - Allowance 100% - Allowance 50% ofAllowance 20% of 10% of cost of cost - year 1 cost - year 1cost - Annual Allowance - Allowance 30% of- Annual 20% of residual cost - year 2Allowance 20% ofcost less IA - Allowance 20% of cost - year 3 DEVELOPMENTCURRENT PROPOSEDTangible Assets Intangible Assets Tangible & Intangible Assets- Initial - Initial Allowance - Allowance 50% of cost - year 1Allowance 20% of (IA) 10% of costcost - Annual Allowance - Allowance 30% of cost - year 2- Annual 20% of residualAllowance 20% ofcost less IA - Allowance 20% of cost - year 3 WORKOVERS AND QUALIFYING SIDETRACKSCURRENT PROPOSEDTangible Assets Intangible Assets Tangible & Intangible Assets- Initial - Allowance 100% of - Allowance 100% of costs forAllowance 20% of costs both tangible and intangiblecosts assets - year 1 - AnnualAllowance 20% ofcost less IA In addition to these capital allowance proposals, the investmenttax credit (being 20% of capital expenditure) against the Special PetroleumTax is now able to be carried forward into the subsequent year, wherepreviously it was only able to be claimed in the year expenditure wasincurred. For more information, please see the full budget statement:http://www.finance.gov.tt/content/Budget-Statement-2014.pdf Texas Sale Update Further to its previous announcements, whilst the purchaser of itsTexas assets continues to indicate that it is proceeding to completesettlement of the acquisition, Range is still awaiting receipt of the finalconsideration for the sale of its Texan assets. Range has agreed to extend thesettlement deadline and will update the market when funds are received. Peter Landau, Executive Director, commented: "We welcome these further incentives proposed by the Minister,which certainly encourage increased development and exploration activities forthe upstream companies operating in Trinidad, and in turn further acceleratethe production growth in Trinidad. Range will be poised to take full advantageof these incentives, as it looks to accelerate both its development andproduction activities on the existing reserves, along with its excitingintensive exploration programme both internally and in partnership with NikoResources." 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) Stuart Laing (Joint Broker) T: +61 (8) 9480 2500Richard Greenfield / Rob Collins /Alexandra 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 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 program over the next12-18 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 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. Gross Oil Reserves Range's Net AttributableProject 1P 2P 3P Interest 1P 2P 3P OperatorOil & NGL -mmbblsTrinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 RangeGuatemala * 2.3* * 32% * 0.74* * Latin American ResourcesTotal Oil & 17.5 22.5 25.2 17.5 20.9 25.2LiquidsGas Reserves -BcfGeorgia - CBM - - 508 45% - - 229 Strait Oil & GasTotal Gas - - 508 - - 203Reserves* 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 MeanProspective Oil Resources - mmbblsTrinidad 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 81.0ResourcesUndiscovered Oil-In-Place - mmbblsPuntland - 16,000 - 20% - 3,200 - Horn PetroleumGeorgia - 403 - 45% - 181 - Strait Oil & GasColombia - 7.8 - 65-75% - 5.1 - - Petro 5.8 CaribbeanUndiscovered Gas-In-Place - TcfGeorgia - - 18.44 - 45% - 8.30 - Strait Oil &Conventional GasGeorgia - CBM - 3.16 - 45% - 1.42 - Strait Oil & GasAll 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 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. 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.