17 April 2014
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
By E‐Lodgement ASX Code: RRS and AIM Code: RRL
Range Resources ("Range" or "the Company") Loan Agreement UpdateAs previously announced, the Company entered into collective US$6.5m loan agreements with Platinum
Partners whereby 100 million Range shares were issued as collateral against the loans pursuant to the 6 month loan agreement dated 15 October 2013. As part of the Company's current development and refinancing initiatives, the loan (in consultation with Platinum Partners) is now scheduled to be repaid on or before 30 April 2014.
Yours faithfully
Rory Scott Russell Chief Executive OfficerContacts
Range Resources LimitedRory Scott Russell
Buchanan (Financial PR - UK) Tim Thompson / Helen Chan T: +44 (0) 20 7466 5000E: rangeresources@buchanan.uk.com
GMP Securities Europe LLP (Broker)Rob Collins / Liz Williamson
T: +44 (0) 207 647 2800
RFC Ambrian Limited (Nominated Advisor)Samantha Harrison / Trinity McIntyre
T: +44 (0) 20 3440 6800 / +61 (8) 9480 2500
PPR (Financial PR - Australia)David Tasker
T: +61 (8) 9388 0944
E: david.tasker@ppr.com.au
Dahlman Rose & Company (Principal American Liaison)OTCQX International Market (U.S.) Christopher Weekes / Stephen Nash T: +1 (212)‐372‐5766
Australia Ground Floor, 1 Havelock Street, West Perth WA 6005, Australia t: +61 8 9488 5220, f: +61 8 9324 2400 e: admin@rangeresources.com.au
London Suite 1A, Prince's House, 38 Jermyn Street, London SW1 6DN t: +44 (0)207 025 7040, f: +44 207 287 8028 w: www.rangeresources.com.au
Range BackgroundRange Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil & gas exploration company with oil & gas interests in Trinidad; Puntland, Somalia; the Republic of Georgia; Guatemala; Texas, USA, and Colombia.
• In Trinidad Range holds a 100% interest in holding companies with three onshore production licenses and a 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. Range also has a farm in with Niko Resources giving it exposure to circa 280,000 acres of prospective onshore and offshore acreage.
• In the Republic of Georgia, Range holds a 45% farm‐in interest in onshore blocks VIa and VIb, covering approx. 7,000sq.km. 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, along with attracting potential farm‐in partners across the license areas given the recent review performed across the licenses.
• 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 is earning a 65% (option to move to 75%) interest in highly prospective licences in the Putumayo Basin in Southern Colombia. Farm‐in interest from a number of parties has been received and preparations for the seismic programme will be initiated subject to further financing becoming available.
• Range has taken a strategic stake in Citation Resources Limited (ASX: CTR) and Latin American Resources (LAR) which hold 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 has a direct and indirect 32% interest in the Guatemalan Project.
Table of ReservesDetailed below are the estimated reserves for the Range project portfolio.
Gross Oil Reserves | Range's | Net Attributable | ||
Project | 1P 2P 3P | Interest | 1P 2P 3P | Operator |
Oil & NGL - mmbbls | ||||
Trinidad | 17.5 20.2 25.2 | 100% | 17.5 20.2 25.2 | Range |
Guatemala | 0.4 2.3 ‐ | 32% | 0.1 0.7 ‐ | Latin American Resources |
Total Oil & Liquids | 17.9 22.5 25.2 | 17.6 20.9 25.2 | ||
Gas Reserves ‐ Tcf | ||||
Georgia - CBM | ‐ ‐ 0.6 | 45% | ‐ ‐ 0.2 | Strait Oil & Gas |
Total Gas Reserves | ‐ ‐ 0.6 | ‐ ‐ 0.2 |
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With the exception of Guatemala, all of the technical information, including information in relation to reserves and resources that is contained in this document has been reviewed internally by the Company's technical advisor, Mr Mark Patterson. Mr Patterson is a petroleum geologist and geophysicist who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves and has reviewed the release and consents to the inclusion of the technical information.
The reserves estimates for the three Trinidad blocks 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.
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 TSX certified 51‐101 certified reserves with respect to the Guatemalan project are as reported by ASX listed
Company Citation Resources (ASX: CTR).
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.
The technical information included in this announcement with respect to Georgia was prepared by Dr. M. Arif Yukler, COO of SOG Georgia. Dr Yukler is a geologist who is a suitably qualified person with more than 38 years of experience in the international oil & gas industry, and in assessing hydrocarbon reserves. Dr Yukler has advised companies and government entities of all size from small caps to super‐majors, as well as state regulatory authorities on the management of resources and exploration areas. Dr. Yukler has reviewed the release and consents to the inclusion of the technical information with respect to Georgia.
Possible Reserves.
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. Undiscovered Oil‐In‐Place is that quantity of oil which is estimated, on a given date, to be contained in accumulations yet to be discovered. The estimated potentially recoverable portion of such accumulations is classified as Prospective Resources, as defined above.Page 3 of 3
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