RANGE RESOURCES LTD: Strategic Stake in Citation Resources

25 January 2013 
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000 
By e-lodgement 
STRATEGIC STAKE IN CITATION RESOURCES 
Highlights 
- Range increases its Latin American footprint by acquiring a strategic 
  stake of 19.9% in Citation Resources Limited (ASX:CTR), with
  interest in two highly prospective oil and gas blocks in Guatemala; 
- The strategic stake allows Range to obtain non-operating exposure to 
  known reserves with significant upside potential with a similar owner /
  operator project to Range's Trinidad operations; 
- The Guatemalan Blocks have proved plus probable reserve estimates (2P) of 
  2.3 MMBBL (on a gross 100% basis), with significant exploration upside
  potential; 
- The blocks have had significant previous exploration with the two well 
  appraisal drilling program currently underway with one well already
  successfully completed and flow testing currently ongoing; and 
- The second well will spud in February upon completion of current
  flow testing program on the first well. 
Range Resources Limited ("Range" or "the Company") is pleased to
announce that as part of the Board's on-going review of opportunities and
strategic options, Range has secured a strategic stake (19.9%) in Citation
Resources Limited ("Citation") (ASX:CTR). Citation holds a farm in right to
acquire a 70% interest in Latin American Resources Ltd ("LAR"), which holds an
80-100% interest in two oil and gas development and exploration blocks in
Guatemala ("Projects"). LAR is the operator of the blocks. Additionally, Range
has acquired a direct 10% equity stake in LAR. 
The Projects consist of Block 1-2005 and Block 6-93 in the South
Peten Basin in Guatemala ("Guatemalan Blocks"). The Guatemalan Blocks have
Canadian NI 51-101 certified proved plus probable (2P) reserves of 2.3 MMBBL
(with approximately 0.45 - 0.6 MMBBls attributable to Range's combined equity
interest in Citation and 10% direct interest in LAR), with significant
exploration upside potential. In addition, the blocks have had significant
previous exploration with the two well appraisal drilling program currently
underway with the Atzam #4 well having already been successfully completed and
flow testing currently underway. The Projects and drilling/operational
infrastructure are owned by LAR together with its minority joint venture
partners in a similar set up to Range's Trinidad operations. 
The strategic stake in Citation and LAR provides Range with
non-operating exposure to a project with known reserves and significant short
term upside potential, as well as creating the potential spin off vehicle for
the company's Puntland assets. 
Given the current share price and the development potential of
Trinidad, the Company's operational and financial focus remains on Trinidad.
With that view, Range believes the stake in Citation to be a cost effective
growth opportunity with minimal further funding required in the near term. 
Transaction Details 
Range will acquire its 19.9% strategic interest in Citation, by
conversion of existing debt funding provided by Range to Citation into
ordinary Citation shares (subject to any necessary Citation shareholder
approvals) at $0.02 with a 1 for 2 free attaching listed Citation option
($0.04, June 2015), which is approximately $2m for the 19.9% interest. In
addition, Range will pay $2m for the 10% interest in LAR, which is finance
carried through the first US$25m spent on the Project. 
Concurrently, Range has completed a placement of 40m new shares to
Citation nominees at A$0.05 per share (being a premium to the current share
price) to raise gross proceeds of $2m, along with the issue of 40,000,000
unlisted options ($0.05, 31 January 2016) in facilitation, introduction and
corporate advisory fees. 
Executive Director Peter Landau commented: 
"The acquisition of the interest in Guatemala through the strategic
stake in Citation Resources and at project level further strengthens our
portfolio of assets in the region that has yielded significant discoveries,
yet remains relatively underexplored. This acquisition is consistent with
Range's strategy of acquiring low cost barrels in areas of strategic
advantage. It provides Range with a unique opportunity to participate in near
term appraisal and development along with potential high impact exploration
opportunities at minimal costs. We now look forward to the flow test results
from the first well, and subsequent spudding of the second well." 
Guatemala Projects Summary - Atzam and Tortugas Formations 
The Projects consist of Block 1-2005 and Block 6-93 in the South
Peten Basin in Guatemala ("Guatemalan Blocks"). As reported by Citation, the
Guatemalan Blocks have Canadian NI 51-101 certified proved plus probable (2P)
reserves of 2.3 MMBBL, with significant exploration upside potential. In
addition the blocks have had significant previous exploration with the two
well appraisal drilling program currently underway with the Atzam #4 well
having already been successfully completed and flow testing currently
underway. The projects and drilling / operational infrastructure are owned by
LAR together with its minority joint venture partners in a similar set up to
Range's Trinidad operations. 
The first appraisal well Atzam #4, which successfully drilled to
its target depth of 4,500 ft., is currently undergoing flow testing
operations. The intention is for the second well, Atzam #5, to spud following
completion of the flow testing program on the Atzam #4 well. The Atzam #4 well
is being drilled on the same structure that the Atzam #2 well tested at an
initial flow rate of up to 1,200 BOPD of 34°API oil at a depth of 3,850 ft. 
Recent mapping of the Atzam structure using existing data from
previous operators (Basic, Hispanoil) and MEM, and incorporating reservoir
data acquired since production initiated in December 2007, indicate the
possibility of a structure of comparable size and orientation to that of the
existing Rubelsanto field in Guatemala. To date, the Rubelsanto field has
produced more than 30 MMBBL of oil since its discovery in 1976. The field
currently continues to produce more than 1,000 BOPD, 36 years after its
discovery. 
In addition to the Atzam structures on Block 1-2005, the Tortugas
structure is a suspended oil field. Originally 17 wells on Tortugas salt dome
were drilled by Monsanto looking for sulphur. One well (T9B) had an oil
blowout at approx 2,200 ft and most others had oil shows in multiples zones. 
The Atzam and Tortugas Fields have had significant previous
exploration and development with 2D seismic and previous production wells. In
2012/13 the planned exit production is approximately 1,000 bbl/d based on
successful production from the two new appraisal wells based on the previous
flow rates of wells drilled on the same structure. 
For more information, please refer to citation.net.au 
Guatemala Overview 
Guatemala is a politically stable country with a developing
economy. Guatemala has enjoyed political stability since 1983 when the first
free election for National Assembly (Congress) took place and a new
constitution, currently in force was approved. In 1985 the first civil
president was elected. Since that date, there have been six civilian
presidents elected in free and democratic elections. Guatemala has enjoyed
more than 30 years of stability, in the social, economic, and political
sectors 
Underpinning development in Guatemala are excellent fiscal terms
with net backs per barrel of approximately US$45 (assuming US$80 oil price)
after all costs (including taxes and royalties). 
Current production in Guatemala is approximately 14,000 bopd with
similar hydrocarbon geology to Mexico. The trends of major Mexican discoveries
(such as the Nazareth Field) have been found to extend into Guatemala. The
major producing basins, North Peten and South Peten, account for 90% of
domestic production. 
Further Information 
Range Resources Limited is pleased to announce the issue of the
following securities: 
- 40,000,000 Ordinary Fully Paid Shares issued at A$0.05 
- 8,613,780 Ordinary Fully Paid Shares issued in lieu of cash loan
  repayments at £0.0313 (YA Global) 
- 10,000,000 Ordinary Fully Paid Shares issued in lieu of cash for
  consultancy and corporate advisory fees 
- 40,000,000 unlisted options ($0.05, 31 January 2016) in
  facilitation, introduction and corporate advisory fees. 
Application will be made for the 58,613,780 new shares to be
admitted to trading on the ASX and AIM. Trading in the new shares is expected
to commence on or around 31 January 2013. 
Following the issue of these securities, the total number of
securities on issue are as follows: 
2,505,371,560     Ordinary Fully Paid Shares (RRS) 
855,166           Unlisted Options (£0.04, 30 June 2015) 
7,058,824         Unlisted Options (£0.17p, 30 April 2016) 
5,180,000         Unlisted Options (£0.075p, 31 January 2017) 
9,000,000         Unlisted Options (£0.125p, 31 March 2015) 
17,921,146        Class B Performance Shares 
15,708,801        Unlisted Options (£0.0615, 19 October 2015) 
32,275,862        Unlisted Options (£0.05075, 30 November 2015) 
40,000,000        Unlisted Options (A$0.05, 31 January 2016) 
Yours faithfully 
Peter Landau
Executive Director 
Contacts 
Range Resources Limited
Peter Landau
Tel : +61 (8) 9488 5220
Em: plandau@rangeresources.com.au 
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 
Fox-Davies Capital Limited                  GMP Securities Europe LLP (Joint 
Broker)
Daniel Fox-Davies / Richard Hail            James Pope / Chris Beltgens
Tel: +44 (0) 203 463 5000                   Tel: +44 (0) 207 647 2800 
PPR (Australia)
David Tasker
Tel: +61 (8) 9388 0944 
Range Background 
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, Trinidad and Colombia. 
- In Trinidad Range holds a 100% interest in holding companies with three 
  onshore production licenses and fully operational drilling subsidiary.
  Independently assessed Proved (P1) reserves in place of 17.5 MMbls with 25.2
  MMbls of proved, probable and possible (3P) reserves and an additional 81
  MMbls of unrisked best estimate 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)
  exploration well having spudded in July in 2011. 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. 
- 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 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 228 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, 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 
  of oil. 
- Range is earning a 65% (option to move to 75%) interest in the highly 
  prospective PUT 6 and PUT 7 licences in Putumayo Basin in Southern
  Colombia. The Company will undertake a 350km2 3D seismic program across the
  two licences and drill one well per licence, as well as looking to re-enter a
  previously suspended well that had a significant historical reserve estimate. 
Table of Reserves and Resources 
Detailed below are the estimated reserves for the Range project
portfolio. 
All figures in       Gross Oil Reserves            Net Attributable
MMboe 
                                     Range's
Project               1P      2P    3P   Interest   1P     2P    3P     
Operator
Oil & NGL
Texas - NCR *        16.4    25.2  35.3   20-25%   2.2    3.4   4.8   Western 
Gulf
Texas - ETCV          1.0    1.6    3.3    22%     0.2    0.3   0.6  Crest 
Resources
Trinidad             17.5    20.2  25.2    100%    17.5   20.2  25.2     Range
Total Oil & Liquids  34.9    47.0  63.8            19.9   21.3  28.9
Gas Reserves
Texas - NCR *        106.0  162.7   228   20-25%   11.7   18.1  25.4  Western 
Gulf
Total Gas Reserves   106.0  162.7   228            11.7   18.1  25.4 
* Reserves attributable to Range's interest in the North Chapman
Ranch asset, which are net of government and overriding royalties as described
in the Forrest Garb report. 
Detailed below are the estimated resources and oil-in-place
delineated across Range's portfolio of project interests. 
All figures in       Gross Oil Resources             Net Attributable
MMboe 
                                      Range's
Project              Low    Best/   High  Interest  Low     Best/   High    
Operator 
                         Mean                           Mean
Prospective
Resources
Trinidad             8.1     40.5   81.0    100%    8.1     40.5    81.0     
Range
Total Prospective    8.1     40.5   81.0            8.1     40.5    81.0
Resources
Undiscovered
Oil-In-Place
Puntland              -     16,000    -     20%      -      3,200    -   Horn 
Petroleum
Georgia               -     2,045     -     40%      -       818     -  Strait 
Oil & Gas
Colombia              -      7.8      -    65-75%    -    5.1 - 5.8  -   Petro 
Caribbean 
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 consultant, Mr Mark Patterson. Mr
Patterson is a geophysicist who is a suitably qualified person with over 25
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 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 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 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. -
.globalmethane.org/documents/toolsres_coal_overview_ch13.pdf. Range's
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. 
Reserve information on the Putumayo 1 Well published by Ecopetrol
1987. 
SPE Definitions for Proved, Probable, Possible Reserves and
Prospective Resources 
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
government regulations. 
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 Reserves. 
1P refers to Proved Reserves, 2P refers to Proved plus Probable
Reserves and 3P refers to Proved plus Probable plus 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. 
END 
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