RANGE RESOURCES LTD: Texas Update and Investor Update Conference Call
10 January 2014
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
Texas Update and Investor Update Conference Call
Range Resources Limited ("Range" or "the Company"), is pleased to
provide an update with respect to the US$30M sale of its Texas assets. As
previously announced, whilst all key completion requirements have been
concluded, the Company has agreed to an ongoing extension of the settlement
timeframe for the sale of these assets to accommodate further payment delays
requested by the purchaser. The Company understands that the delays in
receiving the proceeds from the sale have largely been a result of
unanticipated changes required for corporate restructuring by the purchaser,
which have taken significantly longer than expected to resolve. Following
recent communication from the purchaser, they have now indicated that they
expect to be in a position to complete on or about the end of January 2014.
The Company will advise shareholders on further developments or if,
for any reason, this timetable changes. The Company also continues to consider
its other alternatives in relation to the settlement delays, the sale
agreement and the assets.
Range would also like to announce that it will be holding
Quarterly Update conference call for analysts and investors on Friday 7
February at 09.00 GMT.
To participate in this conference call, please dial 0800 633 8453
UK toll free, 1 800 268 910 Australia toll free, or +44 (0) 20 8196 1480 if
you are calling from outside of the UK, using access code 3268165#.
The recording of the call will be available for replay for 72 hours
(i.e. until 09.00 GMT on Monday 10 February) by dialling the numbers provided
Range Resources Executive Director, Peter Landau, and Trinidad
Chief Operations Officer, Walter Cukavac, will be hosting the call and will
provide corporate and operational updates on the Company.
Investors are invited to submit questions via email ahead of the
conference call to Eva Bezruchko, Investor Relations - email@example.com.
Please send any questions by 09.00 GMT on Wednesday 5 February.
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
(Joint Broker) Stuart Laing
Richard Greenfield / Rob Collins / T: +61 (8) 9480 2500
T: +44 (0) 207 647 2800
Fox-Davies Capital Limited (Joint Broker) Old Park Lane Capital (Joint
Daniel Fox-Davies Michael Parnes
T: +44 (0) 203 463 5000 T: +44 (0) 207 493 8188
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 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 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
- 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 programme as part of its exploration commitments
on the Company's Colombian interests. 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 (19.9%) in Citation Resources Limited
(ASX: CTR) which holds a 60% 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 -
Trinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 Range
Guatemala * 2.3* * 32% * 0.74* * Latin American
Total Oil & 17.5 22.5 25.2 17.5 20.9 25.2
Gas Reserves -
Georgia - CBM - - 508 45% - - 229 Strait Oil &
Total Gas - - 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 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.
Gross Oil Resources Range's Net Attributable
Project Low Best/ High Interest Low Best/ High
Contingent Oil Resources - mmbbls
Guatemala - 20.1 - 32% - 6.4 - Latin
Total Contingent - 20.1 - - 6.4 -
Prospective Oil Resources - mmbbls
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
Undiscovered Oil-In-Place - mmbbls
Puntland - 16,000 - 20% - 3,200 - Horn
Georgia - 403 - 45% - 181 -
Strait Oil &
Colombia - 7.8 - 65-75% - 5.1-5.8 - Petro
Undiscovered Gas-In-Place - Tcf
Georgia - - 18.44 - 45% - 8.30 -
Strait Oil &
Georgia - CBM - 3.16 - 45% - 1.42 -
Strait Oil &
*Range's interest in the Niko JV resources are subject to completing its
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 3 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
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).
CTR has not reported 1P and 3P estimates, but Range is seeking such
information from CTR for future reporting purposes.
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.
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.
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