Acquisition of 100% in Producing Trinidad Oilfi...

20 April 2011

Company Announcements
Australian Securities Exchange
Exchange Plaza
2 The Esplanade
PERTH WA 6000

By E-lodgment

RANGE MOVES TO ACQUIRE 100% INTEREST IN PRODUCING ONSHORE TRINIDAD OILFIELDS

Highlights

  * Range has entered in to a Heads of Agreement to acquire the remaining 90%
    (previously held a 10% interest) ownership interest, through SOCA Petroleum,
    in holding and subsidiary companies which hold three production licences
    in producing onshore oilfields in Trinidad together with an associated 
    local onshore drilling operation;
   
  * The acquisition complements Range's existing portfolio of oil and gas
    production and development assets in Texas and exploration projects in
    Georgia and Puntland;
   
  * Trinidad has produced over 3 billion bbls to date and currently produces
    100,000 bopd with both major and smaller operators active in the country.
    All locally produced onshore oil is acquired by the state owned petroleum 
    refinery with logistics already established;
   
  * Independent geological and petroleum consulting experts Forrest Garb and
    Associates have assessed that the producing fields contain:
   
      + Net Proved plus Probable Reserves (2P) of 4.8 million barrels of oil 
        with further Possible Reserves of 2.1 million barrels.
       
      + Undeveloped Prospective Resources (best estimate) of 20 million barrels
        of oil.
       
  * Current production is approximately 600 bopd with a planned work program 
    expected to lift production to more than 4,000 bopd within 36 months on
    known reserves;
   
  * Planned production doesn't take into account exploration upside with 
    significant potential from the deeper `Herrera Formations' which host
    substantial producing reserves on adjacent blocks;
   
  * 10 Herrera Formation Targets already mapped with extensive 3D Seismic 
    existing on SOCA's licences. The above Prospective Resources does not 
    include any Herrera potential;
   
  * Acquisition comes with established drilling inventory, personnel and
    operations all in place on site;
   
  * Successful oversubscribed placement of £20m through the Company's broker, 
    Old Park Lane Capital to fund initial acquisition costs, with the Company 
    looking at accepting £5m in over subscriptions due to demand; and
   
  * Current work programme now has Range participating for the rest of 2011 in
    2 exploration wells in Puntland, 2 exploration wells in Georgia, at least 4
    appraisal and development wells in Texas, and multiple production wells in
    Trinidad with at least 1 exploration well targeting the highly prospective 
    deeper Herrera formation.
   
Australian-based oil and gas company Range Resources Limited ("Range" or "the
Company") has entered into a binding Heads of Agreement ("HOA") to acquire
through SOCA Petroleum ("SOCA") its right to purchase a 100% interest in a
Trinidad holding company whose two wholly owned subsidiaries hold production
licences for three blocks in producing onshore oilfields in Trinidad (see
Figure 1) together with a 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 of onshore Trinidad. Current production from
the fields is approximately 600 bopd, however Range believes a minimal work
program could potentially lift production to more than 4,000 bopd within 36
months on the known reserves.

In addition to the holding company parent of two subsidiaries holding
production licences for the onshore acreage, the proposed Range acquisition
also includes a 100% interest in a wholly owned drilling company (located in
Trinidad), which owns onshore drilling equipment and related facilities.

The Company is planning to use company-owned drilling rigs and equipment and,
with cashflow from existing production supplemented by a well advanced
financing facility (to be finalised) to fund its development and exploration
program which aims to increase the production from 600 bopd to 4,000 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 8,000 - 10,000 bopd.

Range's Executive Director, Peter Landau commented today, "With the recent
strength and growth in Range's asset base and market capitalisation, the 100%
acquisition represents an incredible opportunity to compliment Range's asset
base of good value exposure to early stage, low risk production / mature
exploration opportunities whilst retaining significant exposure to considerable
measurable exploration upside."

"Onshore Trinidad is a low cost, high operating margin environment with oil
production sold at the wellhead and 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 will target (subject to exploration
success) an ultimate production profile of up to 10,000 bopd over the next 2-3
years ," he added.

Consideration

Under the terms of the Agreement with SOCA Petroleum, Range will pay the
following to acquire the remaining 90% interest in SOCA that it doesn't already
own:

  * US$52m upon formal completion of the acquisition (scheduled to happen
    imminently upon all necessary closing actions being completed);
   
  * The issue of 35,842,293 fully paid ordinary shares upon completion; and
   
  * The potential issue of two parcels of a further 17,921,146 fully paid
    ordinary shares upon production from the SOCA licences reaching 1,250 bopd
    and 2,500 bopd respectively.
   
To help provide funding for the cash component of the acquisition
consideration, Range has received commitments to a placement of 117,647,059
shares at an issue price of £0.17 per share to raise £20 million. The placement
was undertaken through the Company's UK broker, Old Park Lane Capital, to a
number of sophisticated and institutional investor. The placement was well
oversubscribed and Company is looking at accepting up to £5m in over
subscriptions due to demand.

The placement is scheduled to settle on 27 April 2011, other than 4,426,271
shares which are scheduled to settle on 10 May 2011.

Technical Overview of Trinidad assets to be acquired

Historical and current oil production is from the Forest and Cruse Formations
which are shallow fluvio-deltaic reservoirs with current total estimated Proved
plus Probable plus Possible Reserves (3P) (on SOCA's and third parties'
licences) of 20 million barrels of oil (MMbo) (Forest A. Garb & Associates
report1). Current production is approximately 600 bopd from the Morne Diablo,
South Quarry and Beach Marcelle fields.

Significant potential exists in the Deeper Herrera Formation. The Deeper
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 (
note: the report does not provide an assessment of the Deeper Herrera
Formations referred to above).

                                      Oil and Condensate
                                        (MMbbl) (100%)  
                                                        
                                         Recoverable    
                                                        
Proved Reserves*                             2.6        
                                                        
Probable Reserves                            2.2        
                                                        
Possible Reserves                            2.1        
                                                        
Total Reserves (3P)*                         6.9        
                                                        
Prospective Resources (Undeveloped-           20        
Best Estimate)                                          

*Net Reserves (3P) take into account payment of government royalty and
overriding revenue interests.

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.

Technical Team

The development of SOCA's Trinidad Licences will be overseen by 3 key
executives - 2 of whom already have assisted Range with its Texas interests and
a key member of the current Trinidad management team.

Greg Smith (Chairman)

Greg Smith has over 20 years of experience encompassing investigation,
analysis, conceptual planning, exploration, development, financing (equity and
debt), environmental aspects, governmental relations, high level negotiations,
acquisitions, executive management and corporate governance within the minerals
and energy sectors. He has a wide breadth of senior management and executive
experience, having been associated with natural resource companies across the
globe, including coal-bed methane in Wyoming; onshore oil and gas in Guatemala
and Colombia; underground and open pit zinc mines in Canada; and corporate
finance and advisory services throughout the world.

Mark Patterson (Chief Executive Officer)

Mr. Patterson has over 25 years of experience in the oil and gas industry in
both North and South America. During his 13 years with Maxus Energy Corporation
and its predecessor company Diamond Shamrock, he occupied positions of
increasing responsibility including Offshore Exploration Manager, Exploration &
Development Manager for North America, and General Manager for Maxus Bolivia,
Inc. Prior to joining Diamond Shamrock, Mr. Patterson worked as Offshore
Exploration Geophysicist for Getty Oil Company and was Engineering Geophysicist
for Fairfield Industries.

Texas Update

The Company is pleased to announce that drilling continues on the Ross 3H
horizontal well at the East Cotton Valley Project in Texas. The curved portion
of the well, or the "build", has been successfully drilled and cased. Drilling
within the horizontal section continues, with good evidence of oil saturation
and reservoir quality present in the cuttings. The well has reached a total
measured depth of approximately 6,800 ft (2,100m), with another 1,700 ft
(520m), or horizontal section remaining to be drilled.

If successful, the Ross 3H is expected to launch a horizontal development
drilling program that could require more than 20 additional wells to produce
the oil reserves present.

The Company is also pleased to announce that its North Chapman Ranch
Development continues with the successful fracture stimulation of the Smith #1
and Russell Bevly Unit #1 wells. Since frac jobs were initiated on the two
wells, gross combined rates from the field have increased by more than 500%,
reaching 9.3 MMcf and 800 bbl of oil per day during the month of March. Range
and its partners are also planning to spud a third well in the field. The
Albrecht #1 well is expected to spud in late Q2 / early Q3, with the
possibility of a follow-up back to back well being discussed, subject to
success with the Albrecht.

Issue of Shares and Options

Range Resources Ltd (the "Company") is pleased to announce the issue of the
following securities:

  * 12,613,801 Ordinary Fully Paid Shares being issued upon exercise of listed
    options (A$0.05, 31 December 2011);
   
  * 18,918,919 Ordinary Fully Paid Shares being issued upon drawdown of £
    3,500,000 on the equity line of credit facility;
   
  * 117,647,059 Ordinary Fully Paid Shares to be issued in a placement to
    sophisticated and institutional investors at £0.17; and
   
  * 5,000,000 Ordinary Fully Paid Shares to be issued with regards to
    facilitation, corporate advisory and consultancy fees in lieu of cash
    settlement.
   
Following the issue of these securities the total number of securities on issue
are as follows:

1,604,916,462       Ordinary Fully Paid Shares (RRS)                           
                                                                               
207,131,125         Listed Options (RRSO) (A$0.05, 31 December 2011)           
                                                                               
855,166             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)                    

Range has applied for admission of the new shares to trading on the ASX and AIM
markets. All of the shares are expected to be admitted to trading on AIM on or
around 27 April 2011, other than 4,426,471 of the placement shares which are
expected to be admitted to trading on AIM on or around 10 May 2011.


For and on behalf of the Board

Peter Landau
Executive Director

Ends


Contacts

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

Australia                                         London

PPR                                               Tavistock
David Tasker                                      Ed Portman/Paul Youens
Tel: [phone]                            Tel: + 44 (0) 20 7920 3150
Em: [e-mail]                       Em: [e-mail]

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

Old Park Lane Capital Plc in its capacity as sole broker to the company acted
for Range Resources in the placing as sole book runner,  

Old Park Lane Capital Background

Old Park Lane Capital ("OPL") is the definitive natural resources focused
broker. Defined by a highly personal service, they serve institutional and high
net worth dealing clients with outstanding efficiency and discretion. OPL's
core expertise centers on natural resource focused AIM and international dual
listings, fundraisings and equities trading. For more information go to 
oldplc.com.


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 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 (TSXV:AOI) - 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 and 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
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.

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 forward–looking statements. Such forward–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 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.