11 February 2013
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
Range Resources Limited ("Range" or "the Company") is pleased to
announce the following update with respect to the Company's Trinidad
operations with the following highlights:
- The QUN 135 well makes discovery of a new oil reservoir in the
Middle Cruse formation, indicating 50 ft. of net oil pay at approximately
3,500 ft., with the well successfully cemented with 5½" casing;
- The QUN 138 well successfully drilled and put into production
with initial rates (five day average) of approximately 85 bopd;
- The QUN 139 well successfully reached revised target depth of
1,300 ft. and encountered total of 70 ft. of good quality oil sands, and 190
ft. of lower resistive oil sands in the Lower Forest formation to be
perforated later this week; and
- The QUN 133 well perforated and drilling to commence on QUN 140
and QUN 141 wells - all targeting the Lower Forest Formation.
Middle Cruse Formation Drilling
The Company is pleased to report that following the successful
deepening of the QUN 135 well to a revised target depth of 3,800 ft., the
Company has made an apparent discovery of a new oil reservoir in the Middle
Cruse section between 3,490 - 3,540 ft. measured depth. Open hole logs
indicate 50 ft. of previously unseen oil pay with porosities in the 21-23%
range, while offset well control indicate that the identified reservoir
section has significant areal extent.
As previously announced the well reached a depth of 3,500 ft. and
logging indicated the presence of additional resistive oil sands. The Company
subsequently deepened the well and confirmed the presence of a new oil
reservoir. Production casing has been run and testing will now commence. Range
is extremely pleased with the results of the Company's first Middle Cruse
well, with the apparent discovery of a new oil reservoir in the Middle Cruse
formation along with the additional resistive sands encountered in both the
Lower Forest and Upper Cruse formations.
Lower Forest Development Update
Following receipt of the approvals, the QUN 138 well was
successfully perforated and placed into production with initial production
rates of 85 bopd over the first five days under a 6/32" choke size. The
Company will continue to monitor the performance of the well and may look to
increase the choke depending on the performance of the well.
The QUN 139 well has reached its revised target depth of 1,300 ft.
and encountered the presence of 70 ft. of high resistive oil sands in addition
to 190 ft. of lower resistive oil sands in the Lower Forest formation. Casing
has been set and cemented and approvals received to perforate the well and be
placed into production later this week. As previously announced, the QUN 139
well location is contiguous to producing wells QUN 119 and QUN 129 which
achieved initial production rates of 129 bopd and 138 bopd, respectively. Both
wells still flow under natural pressure (QUN 129 and QUN 119 are currently
producing 65 bopd and 45 bopd respectively) with QUN 119 having now produced
for 12 months since first production.
Approvals have been received to commence drilling of the QUN 140
and QUN 141 wells, which will continue the development of the Lower Forest
trend, being contiguous and up-dip to the recently completed and successful
QUN 138 well.
In addition to the wells mentioned above, the Company is looking to
commence remedial work on four wells that have experienced comingling of oil
and water sands. Remedial work will be performed on these wells with a small
work-over rig, with additional perforations to be added in two of the four
wells. This work is expected to improve the performance of these wells and add
further to production.
As such, the company has perforated the Lower Cruse formation of
the QUN 133 well, which experienced oil and water sands comingling in the
Upper Cruse and will now assess performance under pump.
Executive Director Peter Landau commented:
"We are extremely pleased with the results of the ongoing drilling
program in Trinidad, and particularly with the discovery of new oil reservoir.
The QUN 135 well confirms once again that the development potential on Range's
Trinidad blocks remains largely untapped. Once production testing of this new
zone is complete, we will make a determination as to how best to develop the
reservoir as part of our expanding portfolio of exploratory, development, and
secondary recovery opportunities in Trinidad."
The Company will be providing further updates shortly with respect
to the MD 248 well, finalisation of the sale of the Company's Texas interests,
the finalisation of the GIG joint venture in Georgia, well performance in
Guatemala and financing arrangements.
Range Resources Limited
Tel : +61 (8) 9488 5220
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
Daniel Fox-Davies / Richard Hail James Pope / Chris Beltgens
Tel: +44 (0) 203 463 5000 Tel: +44 (0) 207 647 2800
Tel: +61 (8) 9388 0944
Dahlman Rose & Company (Principal American Liaison)
OTCQX International Market (U.S.)
Christopher Weekes / Stephen Nash
Tel: +1 (212)-372-5766
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
- 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.
- Range has taken a strategic stake (19.9%) in Citation Resources
Limited (ASX: CTR) which holds a 70% interest in Latin American Resources
(LAR). LAR holds an 80-100% 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 also holds a 10%
interest in LAR.
Table of Reserves and Resources
Detailed below are the estimated reserves for the Range project portfolio.
All figures in Gross Oil Reserves Net Attributable
Project 1P 2P 3P Interest 1P 2P 3P
Oil & NGL
Texas - NCR * 16.4 25.2 35.3 20-25% 2.2 3.4 4.8
Texas - ETCV 1.0 1.6 3.3 22% 0.2 0.3 0.6 Crest
Trinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2
Guatemala ** 2.3** ** 21-24% ** 0.48- ** Latin
Total Oil & Liquids 34.9 47.0 63.8 19.9 21.3 28.9
Texas - NCR * 106.0 162.7 228 20-25% 11.7 18.1 25.4
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.
** The reserves estimate for the Guatemalan Blocks in which LAR
(and CTR) have an interest in is as reported by CTR. CTR has not reported 1P
and 3P estimates, but Range is seeking such information from CTR for future
Detailed below are the estimated unrisked resources and oil-in-place
delineated across Range's portfolio of project interests.
All figures in Gross Oil Resources Net Attributable
Project Low Best/ High Interest Low Best/ High
Trinidad 8.1 40.5 81.0 100% 8.1 40.5 81.0
Total Prospective 8.1 40.5 81.0 8.1 40.5 81.0
Puntland - 16,000 - 20% - 3,200 - Horn
Georgia - 2,045 - 40% - 818 - Strait
Oil & Gas
Colombia - 7.8 - 65-75% - 5.1-5.8 - Petro
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 estimate for the Guatemalan Blocks in which LAR (and
CTR) have an interest 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
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
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.
Reserve information on the Putumayo 1 Well published by Ecopetrol 1987.
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 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
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.
-0- Feb/11/2013 11:11 GMT
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