Onshore Trinidad Acquisition

ABN 88 002 522 009

Level 3, 1 Havelock Street
West Perth, WA 6005

P [phone]
F [phone]

12 July 2010

Company Announcements

Australian Securities Exchange
Exchange Plaza
2 The Esplanade
PERTH WA 6000

By E-lodgment

RANGE ACQUIRES INTEREST IN ONSHORE TRINIDAD OILFIELDS AND LOCAL DRILLING
COMPANY

Highlights

  * Range signs HoA to acquire a 10% ownership interest in holding companies
    whose wholly owned subsidiaries hold three production licences in producing
    onshore oilfields in Trinidad and significant local onshore drilling
    operations.
   
  * Trinidad has produced over 3b bbls and currently produces 100,000 bopd with
    both major and smaller operators. All locally produced onshore oil is
    acquired by the state owned refinery with logistics already established.
   
  * Independent experts Forrest Garb and Associates have assessed that the
    producing fields contain:
   
  * 
      + Proved plus Probable Reserves (2P) of 4.8 million barrels.
       
      + Undeveloped Prospective Resources of 20 million barrels.
       
  * Current production is 700 bopd (100% basis) with a planned work program 
    expected to lift production to more than 3,500 bopd within 36 months on
    known reserves.
   
  * Planned production doesn't take into account exploration upside with 
    significant potential from deeper formations which host substantial
    producing reserves on adjacent blocks, including reported 3P reserves (of
    third parties) of 30 MMbo for one such reservoir formation.
   
  * Acquisition comes with established drilling inventory (including suitable 
    rigs), personnel and operations all in place on site.
   
Australian-based oil and gas company Range Resources Limited ("Range" or "the
Company") has entered into a binding Heads of Agreement ("HOA") through SOCA
Petroleum ("SOCA")to acquire its rights to a 10 percent interest in companies
whose wholly owned subsidiaries hold production licences for three blocks in
producing onshore oilfields in Trinidad (see Figure 1) and a major local
drilling company.

The production acreage and operating wells cover the Morne Diablo, Beach
Marcelle and South Quarry oilfields, with the total acreage covering 16,253
gross acres on the southern coast onshore Trinidad. Current production from the
fields is 700 bopd, however Range believes a minimal work program could lift
production to more than 3,500 bopd within 36 months on the known reserves.

In addition to the two subsidiaries holding production licences for the onshore
acreage, the proposed Range acquisition also includes a 10 percent interest in
the parent of a wholly owned drilling company (located in Trinidad), which owns
five onshore drill rigs, three production rigs, one swab rig and a full
workshop and pipe yard, storage tanks and facilities.

Importantly, Range will be carried through initial development expenditure. The
company is planning to use company-owned drilling rigs and equipment and, with
cashflow from existing production, is expected to be self-sufficient (other
than a significant initial working capital injection of which Range will be
carried) in its forward program which aims to increase the production from 700
bopd to 3,500 bopd within 36 months from known reserves without taking into
account any exploration upside.

In addition to the known reserves, significant potential exists in the deeper
Herrera Formation (refer below). The Deeper Herrera Formation will be a primary
target of future drilling using company-owned drilling rigs, which are capable
of reaching the depth of these formations. Subject to the successful drill
testing of this formation, the Company is ultimately targeting an increase in
the production level to between 800 - 1,000 bopd attributable to Range.

Range's executive director, Peter Landau commented, "the acquisition represents
the last of Range's `pre Puntland drilling' strategic plays of seeking early
stage, low risk production / mature exploration opportunities with exposure to
measurable exploration upside to complement its existing portfolio."

"Onshore Trinidad is a low cost, high operating margin environment with oil
production sold at the wellhead, with oil production transported to the
Pointe-a-Pierre Refinery, which has capacity for all additional planned
production."

"The Company believes that there is significant potential for value enhancement
given the known management team and target an ultimate production profile of
1,000 bopd (attributable to Range) over the next 2 -3 years (fully funded)," he
added.

Consideration

Under the terms of the HOA, Range is required to pay two instalments:

  * US$2m upon execution of definitive agreements; and
   
  * US$2.25m upon formal completion of the acquisition.
   
Technical Overview of assets to be acquired

Historical and current oil production is from the Forest and Cruse Formations
which are shallow fluvio-deltaic reservoirs with Proved plus Probable plus
Possible Reserves (3P) of 20 million barrels of oil (MMbo) (Forest A. Garb &
Associates report1). Current production is approximately 700 bopd from the
Morne Diablo, South Quarry and Beach Marcelle fields.

Significant potential exists in the deeper Herrera Formation. The Herrera
Formation is a Miocene-aged deepwater turbidite. Production is typically found
in the northeast to southwest thrusted structures to the east and north of the
subject acreage, where the Penal field has produced more than 60 MMbo to date.
3D Seismic was used to identify prospective drilling locations in the license
area that have a further undiscovered oil potential of 100 MMbo.

The Deeper Herrera Formation will be a target of future drilling using
company-owned drilling rigs, which have the capability to reach these
formations.

An independent recoverable reserves assessment by Forrest A. Garb & Associates1
has provided the following certified Reserves and Resources for the 3 blocks.

                                      Oil and Condensate Attributable to  
                                        (MMbbl)(100%)    Range (10%)      
                                                                          
Proved Reserves                              2.6               0.26       
                                                                          
ProbableReserves                             2.2               0.22       
                                                                          
PossibleReserves                             2.1               0.21       
                                                                          
Total Reserves (3P)                          6.9               0.69       
                                                                          
Prospective Resources (Undeveloped)           20                2.0       

The planned forward development program encompasses replacement, infill and
step-out wells and deeper horizon drilling on the licences, as the current
fields exploit only 5 percent of the available area.

Geological Background

Geologically, Trinidad lies on the South American tectonic plate and falls
within the Orinoco Fold Belt which is a prolific oil producer in adjacent
Venezuela some 14km to the southwest. The area is recognised as a world-class
petroleum province with over 3 billion barrels of oil produced to date and
current production in the order of 100,000 bopd.


The Morne Diablo, South Quarry and Beach Marcelle licences are all within a
complex thrust belt, with surface expression known as the Southern Range. The
Southern Range, which contains numerous oil seeps, stretches from west to east
forming the south coast of the island. Fluvial-deltaic sediments, ranging to
tidal and wave-dominated, characterize the shallower producing zones in the
Morne Diablo and South Quarry fields.


Due to growth faulting in the Beach Marcelle area, these sands are thicker and
better developed there. The Pliocene-aged Cruse sands (orange layers in Figure
2), can be segmented into 3 different members. The Lower Cruse is productive in
the area, but largely unexplored. Just above the Lower Cruse, the Middle Cruse
is widespread, and is the main producer in this area. The Upper Cruse consists
of nicely developed sands that offer the possibility of more localized
production.

The Pliocene-aged Forest sands (pink layers) represent the shallowest targets.
Forest sands are comprised of two main oil producing members. The Lower Forest
ranges from 250 to 300 meters deep, and the Shallow Forest ranges from 100 to
150 meters deep. These sands are ubiquitous, and are the shallowest most
accessible targets. In the Beach Marcelle area, the Forest equivalent is called
the Gros Morne formation, where the company is considering reactivation and
expansion of a waterflood to increase production. The deepwater turbidite
Herrera Formation (green layers) is a prolific producer to the north, and is
the target of future exploration drilling on the existing licenses.

Most of the fields are simple four-way dip structural rollover anticlines with
significant closure to create multiple oil entrapment horizons. In some areas
these anticlines show overturned reservoirs, thereby creating repeated
reservoir intervals capable of trapping oil as shown in Figure 2.

Appendix 3B

Please see summary of Appendix 3B as announcement on the ASX

Securities to be issued

  * 27,539,466 Ordinary Fully Paid Shares to be issued in a Placement to
    Sophisticated and Institutional Clients
   
  * 12,438,075 Ordinary Fully Paid Shares to be issued upon exercise of listed
    options ($0.05, 31 December 2011)
   
  * 5,000,000 Ordinary Fully Paid Shares to be issued in Broker, Facilitation,
    Financing, Capital Raising and Corporate Advisory Fees
   
  * 5,000,000 Listed Options to be issued in Broker, Facilitation, Financing,
    Capital Raising and Corporate Advisory Fees
   
  * 5,420,655 Unlisted Options (£0.04p, 30 June 2015) to be issued as capital
    raising fees.
   
Total Options / Shares after the issue

1,072,019,982       Ordinary Fully Paid Shares                                 
                                                                               
64,897,125          Listed Options (RRSOA) (A$1.00, 1 October 2010)            
                                                                               
434,014,667         Listed Attaching Options (RRSO) ($A0.05, 31 December 2011) 
                                                                               
18,845,645          Unlisted Options (A$0.05, 31 Mar 2015)                     
                                                                               
5,420,655           Unlisted Options (£0.04, 30 June 2015)                     
                                                                               
60,000,000          Unlisted Directors Options (A$0.10, 31 Dec 2011)           
                                                                               
3,177,029           Unlisted Options (A$0.50, 30 June 2012)                    

For and on behalf of the Board

Regards


Peter Landau

Executive Director

Contacts

Range Resources
Peter Landau
Tel : [phone]
Em: [e-mail]

Australia                                            London
PPR                                                  Conduit PR
David Tasker                                         Jonathan Charles
Tel: [phone]                               Tel: + 44 (0) 20 7429 6666
Em: [e-mail]                          Em: [e-mail]

RFC Corporate Finance (Nominated Advisor)            Old Park Lane Capital (Broker)
Stuart Laing                                         Michael Parnes
Tel: [phone]                               Tel: [phone]

Range Background

Range Resources 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 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 215 Bcf of natural gas, 16 mmbbls of oil
    and 15 mmbbls of natural gas liquids.
   
  * Range holds a 13.56% 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 (TSXV:AOI) - 65% Operator, in 2010.
   
  * In the Republic of Georgia, Range holds a 50% farm-in interest in onshore
    blocks VIa and VIb, covering approx. 7,000sq.km. Currently, Range has
    recently completed a 410km 2D seismic program.
   
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 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.

The reserves estimate for the North Chapman Ranch Project and East Texas Cotton
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 as well as in the full Lonquist report on the Range website.

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 forward–looking statements. Such forward–looking statements:

  * are necessarily based upon a number of estimates and assumptions that,
    while considered reasonable by RangeResources 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 forward–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 forward–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 forward–looking statements.

All forward–looking statements made in this presentation are qualified by the
foregoing cautionary statements. Investors are cautioned that forward–looking
statements are not guarantees of future performance and accordingly investors
are cautioned not to put undue reliance on forward–looking statements due to
the inherent uncertainty therein

Forrest Garb & Associates, INC International Petroleum Consultants