RANGE RESOURCES – SIGNIFICANT INCREASE IN PROVED RESERVES

by Michael on May 16, 2012

Range Resources Limited (“Range” or “the Company”) is both an ASX-listed (ASX: RRS) and AIM-listed (AIM: RRL) exploration and production Company, with its principal activities directed towards finding and delineating hydrocarbons in Puntland, Somalia; the Republic of Georgia, onshore Texas, USA and Trinidad.

Today RANGE RESOURCES released an update as you can find below. What I like is the phrase “the report confirms a significant increase to the Company’s Proved Reserves (1P), by as much as 50%” and I hope that we will see a considerable re-rating of the Share Price as a result.

TEXAS AND TRINIDAD UPDATE:

Range Resources Limited (“Range” or the “Company”) is pleased to announce the
following updates with respect to its Texas and Trinidad assets.

Texas

Following the successful drilling of the Smith #2 and Albrecht #1
wells, the Company engaged Forest Garb to prepare an update to the Company’s
reserves and valuation report with respect to Range’s interests in the North
Chapman Ranch field. As expected, the report confirms a significant increase
to the Company’s Proved Reserves (1P), by as much as 50% with the final report
released once the Albrecht #1 well is producing steady state.

The Smith #2 was recently placed into production while the Albrecht
#1 is currently unloading frac fluid following a successful multi-stage
fracture stimulation. With more than 3,000 bbl of frac fluid left to recover,
the Albrecht well has already produced at approximately 1 mmcf of gas and 150
bbl of oil per day with 4500 psi Flowing Tubing Pressure on an 8/64″ choke
while unloading 125 bbl of water per day. The well is performing in line with
expectations with regards to previous completed wells and flow rates at North
Chapman. With the Smith #2 and Albrecht #1 wells completed and online,
approximately 60% of the Company’s North Chapman Ranch reserves can now be
classified as Proved (1P), with approximately 80% in the Proved + Probable
(2P) categories.

The Company is extremely pleased with the results and will now
commence its various initiatives to monetize its North Chapman Ranch
interests.

In the Company’s East Texas Cotton Valley interest, the joint
venture has successfully commenced the long awaited fracture stimulation
operations on the Ross 3H well, which the Company believes will add valuable
oil reserves and production within its Texas portfolio of assets. The Company
will provide ongoing updates on the progress of the Ross 3H well.

Set out below is Range’s current attributable interest in the net recoverable
reserves split between the Company’s Texas and Trinidad assets which is net of
government and overriding royalties and represents Range’s economic interests
in its development and production assets as classified in the report from
Forest Garb which will be updated shortly……

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