16 May 2012
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
TEXAS AND TRINIDAD UPDATE
Range Resources Limited ("Range" or the "Company") is pleased to announce the
following updates with respect to its Texas and Trinidad assets.
Following the successful drilling of the Smith #2 and Albrecht #1
wells, the Company engaged Forest Garb to prepare an update to the Company's
reserves and valuation report with respect to Range's interests in the North
Chapman Ranch field. As expected, the report confirms a significant increase
to the Company's Proved Reserves (1P), by as much as 50% with the final report
released once the Albrecht #1 well is producing steady state.
The Smith #2 was recently placed into production while the Albrecht
#1 is currently unloading frac fluid following a successful multi-stage
fracture stimulation. With more than 3,000 bbl of frac fluid left to recover,
the Albrecht well has already produced at approximately 1 mmcf of gas and 150
bbl of oil per day with 4500 psi Flowing Tubing Pressure on an 8/64" choke
while unloading 125 bbl of water per day. The well is performing in line with
expectations with regards to previous completed wells and flow rates at North
Chapman. With the Smith #2 and Albrecht #1 wells completed and online,
approximately 60% of the Company's North Chapman Ranch reserves can now be
classified as Proved (1P), with approximately 80% in the Proved + Probable
The Company is extremely pleased with the results and will now
commence its various initiatives to monetize its North Chapman Ranch
In the Company's East Texas Cotton Valley interest, the joint
venture has successfully commenced the long awaited fracture stimulation
operations on the Ross 3H well, which the Company believes will add valuable
oil reserves and production within its Texas portfolio of assets. The Company
will provide ongoing updates on the progress of the Ross 3H well.
Set out below is Range's current attributable interest in the net recoverable
reserves split between the Company's Texas and Trinidad assets which is net of
government and overriding royalties and represents Range's economic interests
in its development and production assets as classified in the report from
Forest Garb which will be updated shortly.
Category Oil Natural Gas Natural Gas
(MMbbls) (Bcf) Liquids
Trinidad Texas Trinidad Texas Trinidad Texas
Proved (P1) 15.4 0.7 3.2 7.6 - 0.7
Probable (P2) 2.2 0.6 - 5.5 - 0.5
Possible (P3) 2.0 1.7 - 14.6 - 1.3
Total Reserves 19.6 3.0 3.2 27.7 - 2.5
Set out below is the total estimate Gross Reserves and Resources
across split between Trinidad and Texas.
Category Oil Natural Gas Natural Gas
(MMbbls) (Bcf) Liquids
Trinidad Texas Trinidad Texas Trinidad Texas
Proved (P1) 16.2 6.0 3.2 64.3 - 5.0
Probable (P2) 3.0 4.4 - 48.6 - 3.8
Possible (P3) 2.9 11.6 - 129.6 - 10.1
Total Reserves 22.1 22.0 3.2 242.5 - 18.9
The Company is also pleased to report that progress continues to
gain pace with respect to the Company's development program of the shallow
Lower Forest Horizons within the Morne Diablo field. The three drilling rigs
are now progressing on schedule with the fourth rig due to be added in June.
Drill site preparation continues on pace, with a total of 8 future well sites
having been prepared in anticipation of the three shallow rigs extending the
producing trend to the east of the existing field.
Also in Trinidad, work continues to prepare the Company's rig #8
for June spudding of the Middle and Lower Cruse formations (6,500 ft) within
established producing areas. As historically prolific producing horizons, the
Middle and Lower Cruse targets are expected to add significant production and
reserves to Range's growing operations. Based on drilling results to date as
well as planned development drilling throughout the Company's Trinidad
acreage, Range expects to certify additional reserves in 2012, while steady
progress is made towards growth in production and cash flow.
Added Peter Landau, Executive Director "Range is fully funded with
respect to all its operations which are progressing extremely well. Clearly
there will be short term frustration with our current share price and world
markets but nothing has changed with regards to our development program for
2012 with the added bonus of the landmark results to date of the Shabeel-1
well in Puntland and the spudding of the second Shabeel North well shortly."
Range Resources Limited
Tel : +61 (8) 8 9488 5220
PPR Tavistock Communications
David Tasker Ed Portman/Paul Youens
Tel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7920 3150
Em: email@example.com Em: firstname.lastname@example.org
RFC Ambrian Limited (Nominated Advisor) Old Park Lane Capital (Joint Broker)
Stuart Laing Michael Parnes
Tel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188
Panmure Gordon (Joint Broker)
Katherine Roe / Brett Jacobs
Tel: +44 (0) 207 459 3600
Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil &
gas exploration company with oil & gas interests in the frontier state of
Puntland, Somalia, the Republic of Georgia, Texas, USA and Trinidad.
- In Trinidad Range recently completed the acquisition of a 100% interest in
holding companies with three onshore production licenses and fully operational
drilling subsidiary. Independently assessed Proved (1P) reserves in place of
15.4 MMbls with 19.6 MMbls of proved, probable and possible (3P) reserves and
an additional 20 MMbls (mean) of 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) well drilled
in Q4 2011. The Company is focusing on a revised development strategy that
will focus on low-cost, shallow appraisal drilling of the contingent resources
around the Tkibuli-Shaori ("Tkibuli") CBM deposit, which straddles the central
sections of the Company's two blocks.
- In Puntland, Range holds a 20% working interest in two licences encompassing
the highly prospective Dharoor and Nugaal valleys. The operator and 60%
interest holder, Horn Petroleum Corp. (TSXV: HRN) has spud the first well in a
two well programme in early 2012 targeting 300mmbls and 375mmbbls of best
estimate Prospective Resources (100% basis). Site construction has been
completed on the second well with the setting of the 30 inch surface casing
and the drilling of a 50 meter pilot hole in readiness for spudding following
the completion of the first well.
- 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 242 Bcf of natural gas, 15 mmbbls of
oil and 19 mmbbls 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
The reserves estimates for the 3 Trinidad blocks and update
reserves estimates for the North Chapman Ranch Project and East Texas Cotton
Valley 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 world-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 S-X an 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.
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").
The prospective resource estimates for the two Dharoor Valley
prospects are internal estimates reported by Africa Oil Corp, the operator of
the joint venture, which are based on volumetric and related assessments by
Gaffney, Cline & Associates.
In granting its consent to the public disclosure of this press
release with respect to the Company's Trinidad operations, Petrotrin makes no
representation or warranty as to the adequacy or accuracy of its contents and
disclaims any liability that may arise because of reliance on it.
The Contingent Resource estimate for CBM gas at the Tkibuli project
is sourced from the publically available references to a report by Advanced
Resources International's ("ARI") report in 2009: CMM and CBM development in
the Tkibuli-Shaori Region, Georgia. Advanced Resources International, Inc.,
2009. Prepared for GIG/Saknakhshiri and U.S. Trade and Development Agency.-
technical consultants have not yet reviewed the details of ARI's resource
estimate and the reliability of this estimate and its compliance with the SPE
reporting guidelines or other standard is uncertain. Range and its JV partners
will be seeking to confirm this resource estimate, and seek to define
reserves, through its appraisal program and review of historical data during
the next 12 months.
SPE Definitions for Proved, Probable, Possible Reserves and
Proved Reserves are those quantities of petroleum, which by
analysis of geoscience and engineering data, can be estimated with reasonable
certainty to be commercially recoverable, from a given date forward, from
known reservoirs and under defined economic conditions, operating methods, and
Probable Reserves are those additional Reserves which analysis of
geoscience and engineering data indicate are less likely to be recovered than
Proved Reserves but more certain to be recovered than Possible Reserves.
Possible Reserves are those additional reserves which analysis of geoscience
and engineering data indicate are less likely to be recoverable than Probable
Prospective Resources are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from undiscovered accumulations by
application of future development projects. Prospective Resources have both an
associated chance of discovery and a chance of development. Prospective
Resources are further subdivided in accordance with the level of certainty
associated with recoverable estimates assuming their discovery and development
and 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, but
which are not currently considered to be commercially recoverable.