4 September 2013
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
Range Resources Limited ("Range" or "the Company") would like to
draw attention to the announcement released today by Citation Resources
Limited (ASX:CTR) with respect to the Company's interest in Guatemala with the
- Independent expert recommends Atzam #4 production rate of 466
- Atzam #4 well production continuing - good quality oil on
restricted choke with no water produced to date and ongoing strong natural
- Updated Reserve Report - Initial 1P reserves of 362,515 barrels
for 6 foot producing section alone
- Significant 1P reserve increase expected upon production of
additional 7 foot C17 carbonate yet to be perforated
- Atzam oil field 20mmbbl 2C contingent resource estimate being
reviewed with Atzam #4 success
- Significant exploration upside on Atzam block - unexplored salt
dome and anticline structures
- Atzam #5 development well on schedule to spud in late September
- Construction of new Atzam tank facilities to commence
- Citation fully funded for the Atzam #5 development well and oil
storage facility upgrades
Range has a direct and indirect 32% interest in the Guatemalan
Further details are contained in the Citation Resources
announcement, which can be accessed at:
Range Resources Limited PPR (Australia)
Peter Landau David Tasker
T: +61 (8) 9488 5220 T: +61 (8) 9388 0944
E: firstname.lastname@example.org E: email@example.com
GMP Securities Europe LLP RFC Ambrian Limited (Nominated Advisor)
(Joint Broker) Stuart Laing
Richard Greenfield / Rob Collins / T: +61 (8) 9480 2500
T: +44 (0) 207 647 2800
Fox-Davies Capital Limited (Joint Old Park Lane Capital (Joint Broker)
Broker) Michael Parnes
Daniel Fox-Davies T: +44 (0) 207 493 8188
T: +44 (0) 203 463 5000
Dahlman Rose & Company (Principal American Liaison)
OTCQX International Market (U.S.)
Christopher Weekes / Stephen Nash
T: +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 MMBO with 25.2
MMBO of proved, probable and possible (3P) reserves and an additional 81 MMBO
of unrisked prospective resources.
- 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
- Range is earning a 65% (option to move to 75%) interest in highly
prospective licences in the Putumayo Basin in Southern Colombia. The Company
will undertake a 3D seismic program in the near term as part of its
exploration commitments on the Company's Colombian interests.
- 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 20% interest in
Table of Reserves and Resources
Detailed 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% 0.13 0.74* * Latin American
Total Oil & 17.5 22.5 25.2 17.5 20.9 25.2
Gas Reserves - Bcf
Georgia - CBM - - 508 45% - - 229 Strait Oil &
Total Gas Reserves - - 508 - - 203
* 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 3P estimates, but
Range is seeking such information from CTR for future reporting purposes. Also
note that the 1P reserve estimate for Guatemala reflects a 20% recovery
factor, whereas the 2P estimate reflects a 30% recovery factor.
Detailed below are the estimated resources and oil-in-place delineated across
Range's portfolio of project interests.
Gross Oil Resources Range's Net Attributable
Project Low Best/ High Interest Low Best/ High
Contingent Oil Resources - mmbbls
Guatemala - 20 - 32% - 6.4 - Latin
Total Contingent - 20 - 32% - 6.4 -
Prospective Oil Resources - mmbbls
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
Undiscovered Oil-In-Place - mmbbls
Puntland - 16,000 - 20% - 3,200 - Horn
Georgia - 403 - 45% - 181 - Strait
Oil & Gas
Colombia - 7.8 - 65-75% - 5.1 - - Petro
Undiscovered Gas-In-Place - Tcf
Georgia - Conventional - 18.44 - 45% - 8.30 - Strait
Oil & Gas
Georgia - CBM - 3.16 - 45% - 1.42 - Strait
Oil & Gas
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 purposes.
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.
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 TSX certified 51-101 certified reserves with respect to the Guatemalan
project are as reported by ASX listed Company Citation Resources (ASX: CTR).
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.
Reserve information on the Putumayo 1 Well published by Ecopetrol 1987.
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.
SPE Definitions for Proved, Probable, Possible Reserves and Prospective
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
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
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.
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