3 May 2011 09:56
3 May 2011The ManagerCompany Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge StreetSYDNEY NSW 2000By e-lodgement
GEORGIAN DRILLING CONFIRMS EARLY JUNE SPUD DATE
Highlights
* Mobilisation of Georgian Exploration program commences with spudding confirmed early June 2011; and * The Mukhiani 1 well (targeting approximately +115m bbls of mean oil in place) is the first of an anticipated 4-6 high impact exploration wells to be drilled in 2011 across the Company's Georgian, Puntland and Trinidad exploration assets.
International oil and gas exploration, development and production company, Range Resources Limited ("Range" or "the Company") along with its joint venture partners, Strait Oil and Gas ("Strait") and Red Emperor Resources ("Red Emperor ") is pleased to announce that it has secured a ship to transport the exploration drilling rig from the UK to Georgia, thus triggering the commencement of the Company's two exploration well drilling program in Georgia.
Site preparation is well underway with all site work and earth works complete with supervisors from Edeco and First Drill due on site to supervise the final stages of construction in readiness for the arrival of the rig.
Figure 1 & 2 - Mukhiani Well site location on the Vani 3 Prospect
The Mukhiani Well is targeting the Vani 3 prospect which has the following potential STOIIP:
Vani 3 Prospect - STOIIP* (MMbbls) P90 P50 P10 Mean 41.7 92.7 178.2 115.2
*STOIIP shown here assumes that the Vani 3 Prospect contains 3 stacked reservoirs based on current stratigraphic understanding. Any given well may encounter 1, 2, or 3 such potential reservoirs depending on the degree of relative uplift and/or erosion at any given Prospect location.
The recently completed geochemical helium survey undertaken by Range confirmed the suitability of the first drill location with oil exploration and development prospectivity complementing the earlier seismic work completed on the target.
Yours faithfullyPeter LandauExecutive DirectorContactsRange ResourcesPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Tavistock CommunicationsDavid Tasker Ed Portman / Paul YouensTel: +61 (8) 9388 0944 Tel: +44 (0) 20 7920 3150Em: david.tasker@ppr.com.au Em: eportman@tavistock.co.ukRFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Broker)Stuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188Range Background
Range Resources is a dual listed oil & gas exploration company with oil & gas interests in the frontier state of Puntland, Somalia, the Republic of Georgia and Texas, USA.
* Range holds a 25% interest in the initial Smith #1 well and 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. Drilling of the first well has resulted in a commercial discovery with independently assessed gross recoverable reserves in place of 240 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, with the prospect's project area encompasses approximately 1,570 acres encompassing a recent oil discovery. Independently assessed gross recoverable reserves in place of 5.4 Mmbbls of oil. * In Puntland, Range holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys with plans to drill two wells - 45% Operator, in 2011. * In the Republic of Georgia, Range holds a 40% farm-in interest in onshore blocks VIa and VIb, covering approx. 7,000sq.km. Currently, Range has recently completed a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of oil-in-place. * In Trinidad Range has entered into a HOA to acquire a 100% interest in holding companies with three onshore production licenses and fully operational drilling subsidiary. Independently assessed gross recoverable 3P reserves in place of 6.9MMbls.
The reserves estimate for the North Chapman Ranch Project and East Texas Cotton Valley has been formulated by Lonquist & Co LLC who are Petroleum Consultants based in the United States with offices in Houston and Austin. Lonquist provides specific engineering services to the oil and gas exploration and production industry, and consults on all aspects of petroleum geology and engineering for both domestic and international projects and companies. Lonquist & Co LLC have consented in writing to the reference to them in this announcement and to the estimates of oil, natural gas and natural gas liquids provided. These estimates were formulated 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 reserves estimates for the 3 Trinidad blocks 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 have 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.
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").
Forward Looking Statements
Certain statements contained in this announcement, including information as to the future financial or operating performance of Range Resources Limited and its projects, are forwardâ€"looking statements. Such forwardâ€"looking statements:
* are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Range Resources Limited, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; * involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forwardâ€"looking statements; and * may include, among other things, statements regarding targets, estimates and assumptions in respect of production and prices operating costs production prices, and results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.
Range Resources Limited disclaims any intent or obligation to update publicly any forwardâ€"looking statements, whether as a result of new information, future events or results or otherwise.
The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forwardâ€"looking statements.
All forwardâ€"looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forwardâ€"looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forwardâ€"looking statements due to the inherent uncertainty therein
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