RANGE RESOURCES | Puntland Drilling Update | RNS
Range Resources Ltd
ABN 88 002 522 009
4 August 2011
PUNTLAND DRILLING UPDATE
* Puntland Government and Africa Oil Corp. agree to adjust specific milestone
* Contracts for a drilling rig and third party services are in advanced
stages of negotiations with contract execution scheduled for early August.
* Drilling of two wells now scheduled to occur in Q4, 2011.
International oil and gas exploration, development and production company,
Range Resources Limited ("Range" or "the Company") is pleased to announce that
its Puntland Joint Venture partner and operator, Africa Oil Corp ("Africa
Oil"), through its newly created company Horn Petroleum Corp. ("Horn
Petroleum") is currently in final preparations to commence the historic and
highly prospective two well drilling campaign in the Dharoor Valley Block in
Puntland, with the first well scheduled to spud early in the fourth quarter of
The drilling locations have been selected over two robust prospects and each
well is targeting gross best estimate prospective resources of 300 million
barrels and 375 million barrels recoverable for the two prospects (with net
attributable prospective resources to Range of 60 million barrels and 75
million barrels respectively). Contracts for the drilling rig and third party
services are in advanced stages of negotiation and are expected to be executed
in early August.
The Puntland Government and Dharoor Valley communities are fully supportive of
the drilling project and have ensured they will do all necessary to allow the
project to move forward safely and expeditiously. Specific milestone target
dates have been adjusted by the Puntland Government allowing the Company and
partners to move the drilling start-up to the fourth quarter of 2011. In
addition, partial relinquishments in both the Dharoor Valley and Nugaal Valley
agreements have been finalized and approved.
Range Resources Executive Director, Peter Landau commented, "We are delighted
that JV partner and Puntland operator, Africa Oil Corp., along with the
Puntland Government have settled on mutually agreeable terms that will finally
see a well(s) drilled in Puntland, Somalia this year. We look forward to
advising the market in the coming week(s) as critical service contracts are
entered into and mobilization begins."
"Range is certainly entering into an exciting stage for the Company, with the
drilling of the first exploration well in Georgia progressing well, the first
well in the 21 well initial Trinidad work program having spudded and scheduled
to be completed and on-line mid next week before moving on to the next well in
this program. Also with a contractor appointed for the third well on the North
Chapman Ranch Project, the Company will have its four operations all active in
September and October of this year. "
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
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RFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Broker)
Stuart Laing Michael Parnes
Tel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188
Range Resources 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.
* 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 mean 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 encompasses
approximately 1,570 acres encompassing a recent oil discovery.
Independently assessed gross recoverable reserves in place (on a mean 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 (TSXV: AOI) 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. Currently, Range has
recently completed a 410km 2D seismic program with independent consultants
RPS Energy identifying 68 potential structures containing and estimated 2
billion barrels of oil-in-place (on a mean 100% basis) with the first of
two exploration wells to be drilled in 2011.
* 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 gross recoverable
3P reserves in place of 6.9MMbls (on a mean 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
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
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.
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