RANGE RESOURCES LTD: Range completes farm-in agreement with Niko Resources

RANGE RESOURCES LTD: Range completes farm-in agreement with Niko Resources
17 December 2013 
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000 
        Range completes farm-in agreement with Niko Resources 
- Range increases its Trinidad footprint by 280,000 gross acres through 
  the formal execution of a farm-in with Niko Resources Ltd. on the
  Guayaguayare block in Trinidad; 
- The Farm-in provides Range with broad exposure to both onshore and 
  offshore potential with excellent synergies between Range's three existing
  blocks and the Guayaguayare block; 
- Range to gain exposure to both shallow and deep oil-producing horizons 
  within the Guayaguayare block, including the highly prospective Cretaceous 
  section, believed to be the source rock for Trinidad's prolific
  onshore petroleum system; and 
- Multiple onshore areas within the Guayaguayare block represent (on a 100% 
  interest basis) a best case prospective resource of approximately 100 MMbo, 
  while the offshore areas have a best case prospective resource of 33 MMboe. 
Range Resources Limited ("Range" or "the Company") is pleased to
announce that further to its announcement on 4 July 2013, the farm-in
agreement has now been formally executed with Niko Resources Ltd. ("Niko")
(TSX:NKO) the leading Canadian exploration and development company, regarding
the Guayaguayare Block in Trinidad. The farm-in agreement is subject to final
regulatory approval. 
Under the terms of the farm-in agreements, Range will earn 50% of
Niko's existing interests in the deep and shallow rights covering both onshore
and offshore areas, with the consortium to drill two onshore wells: one
shallow onshore well to a maximum of 5,000 ft., and one deep onshore well to a
minimum of 5,000 ft. The two onshore wells will test approximately 22% of the
prospective resource estimate with the wells to be drilled in the vicinity of
the Beach Marcelle Field. The Beach field itself has produced over 30 MMbo to
date. In the event of a discovery from either of the two initial wells, the
consortium will then look to drill an initial appraisal well. The first well
is targeted to spud in early 2014. 
Range will fund the two onshore wells and the potential initial
appraisal well at its sole expense, and will share costs equally with Niko
thereafter, including the cost of drilling an initial offshore test. Expected
to be drilled from an onshore location, the offshore well will test a prospect
that targets the 33 MMboe best case (on a 100% interest basis) prospective
The Guayaguayare Block represents the largest addition to Range's
Trinidad portfolio to date, increasing the Company's acreage position by more
than 280,000 acres. With several producing fields within the block boundaries,
including the Company's own Beach Marcelle Field, the Guayaguayare Block
combines shallow drilling targets with significant exploration potential and
an expansive area within a highly prolific petroleum system. With several
high–impact prospects already identified on the block. 
The farm–in presents Range with a perfect opportunity to add
highly prospective acreage on trend with its existing exploration, development
and secondary recovery projects, while leveraging its fleet of drilling and
production rigs and operating experience within the region. Given the
Company's ongoing production operations in South Quarry, Morne Diablo, and
Beach Marcelle, Range is uniquely positioned to operate future discoveries,
both on or offshore, which in turn should result in appreciable synergies and
lower operating costs. 
The Guayaguayare Block Overview 
The Block surrounds Range's Beach Marcelle Field, and extends south
to the limits of Trinidad's territorial waters. In addition to proven
Tertiary–age exploration targets, the block is believed to hold significant
potential in the Cretaceous section, which has been successfully developed in
the Eastern Venezuelan basin. Four prospective onshore areas have been
identified within the Guayaguayare Block, each considered to have significant
potential for oil, whilst the offshore structural complex is believed to have
significant potential for large gas discoveries with several large structures
Niko currently holds shallow and deep Production Sharing Contracts
for 65% of the onshore portion (Range to earn 32.5% on a cost recoverable
basis) and 80% of the offshore portion (Range to earn 40% on a cost
recoverable basis) of the license area with the Guayaguayare Block comprising
280,216 shallow acres and 294,054 deep acres. Trinidad's State Owned petroleum
company, Petrotrin, holds the remaining balance of the interests (35% onshore
and 20% offshore). 
The Guayaguayare Block is comprised of over 280,000 contiguous
acres covering both onshore and offshore portions of known, productive trends
along the southern coast of Trinidad. The Guayaguayare block is situated along
trend with the most prolific oil and gas fields in Trinidad and lies in the
transition area between the transpressional Southern basin and the extensional
Columbus basin. A regional wrench fault, an extension of the Los Bajos fault,
cuts through the onshore to offshore transition zone. Traps associated with
this fault produce oil in Southwest Trinidad and off the East Coast from Upper
Miocene / Pliocene Sands. 
To date, the following work has been completed by Niko and previous
operators on the block: 
- Acquired and processed 217km2 3D land survey 
- Acquired and processed 277km2 3D marine survey (2011) 
- Two 3D marine surveys were reprocessed (ELF 1997 and Mobil 1990) 
- All 3 offshore 3D surveys have been merged prestack (total 836 km2) 
Yours faithfully 
Peter Landau
Executive Director 
Range Resources Limited                 PPR (Australia)
Peter Landau                            David Tasker
T: +61 (8) 9488 5220                    T: +61 (8) 9388 0944
E: plandau@rangeresources.com.au        E: david.tasker@ppr.com.au 
GMP Securities Europe LLP               RFC Ambrian Limited (Nominated Advisor)
(Joint Broker)                          Stuart Laing
Richard Greenfield / Rob Collins /      T: +61 (8) 9480 2500
Alexandra Carse
T: +44 (0) 207 647 2800 
Fox-Davies Capital Limited (Joint       Old Park Lane Capital (Joint Broker)
Broker)                                 Michael Parnes
Daniel Fox-Davies / Richard Hail        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 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 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 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 MMbbl of oil and 17
MMbbl 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 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 10% interest in
Table of Reserves and Resources 
Detailed below are the estimated reserves for the Range project portfolio. 
All figures in       Gross Oil      Range's    Net Attributable
MMboe                Reserves 
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 
Trinidad          17.5   20.2  25.2     100% 17.5        20.2 25.2 Range 
Guatemala           **  2.3**    **   21-24%   ** 0.48-0.55**   ** Latin 
American Resources 
Total Oil &       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        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 reporting
Detailed below are the estimated resources and oil-in-place delineated across
Range's portfolio of project interests. 
All figures in MMboe  Gross Oil Resources  Range's    Net Attributable 
Project               Low    Best/   High  Interest  Low    Best/   High  
                         Mean                            Mean 
Prospective Resources 
Trinidad (BM & MD)      8.1    40.5   81.0     100%    8.1     40.5  81.0 Range 
Trinidad - Niko JV     20.3   101.5  203.0     40%*    8.1     40.6  81.2 Range
Trinidad - Niko JV      6.6    33.0   66.0   32.5%*    2.1     10.7  21.5 Range
Total Prospective      35.0   175.0  350.0            18.3     91.8 183.7
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 
*Range's interest in the Niko JV resources are subject to completing its
earn-in obligations. 
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 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. 
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. 
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. 
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
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. 
-0- Dec/17/2013 07:00 GMT
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