Quarterly Activities Report for December 2011

31 January 2012

            
QUARTERLY REPORT FOR PERIOD ENDING 31 DECEMBER 2011


Issued Capital 1,903m* ASX Code RRS Closing price $0.13*

Market Capital A$247m* AIM Code RRL Closing Price £0.082*

* as at 31 December 2011

Gross Production for the Quarter

Gas 381k mcf Range Interest - 85k mcf

Oil 72,229 bbls Range Interest - 51,486 bbls


The Board of Range Resources Limited ("Range" or "the Company") is pleased 
to provide the following commentary to be read in conjunction with the
Appendix 5B (Quarterly Cash Flow Report) which is attached.

Reserves and Valuation Upgrades - Trinidad and Texas

During the quarter, the Company announced a significant upgrade of
its Proved (P1) Reserves along with completing a consolidated, independent
reserves, resource and valuation report on the Company's project interests in
Trinidad and Texas.

490% Upgrade of Proved (P1) Reserves

Under the Beach Marcelle Incremental Production Service Contract ("IPSC"), its
wholly owned subsidiary Los Bajos Oil Limited has with Petrotrin established
P1 reserves of 12.8 million barrels of oil based on extensive independent
engineering studies of its mature oil fields in Trinidad. It should be noted
that under the IPSC, in ground reserves belong to Petrotrin. The reserves are
then able to be economically developed and exploited by the Contract partner
pursuant to an agreed work program.

This increase in reserves follows the recently completed engineering studies
of secondary recovery potential in the Company's Beach Marcelle Block. Range,
through its wholly owned subsidiary Los Bajos Oil Limited will seek all
necessary approvals to commence development in early 2012 and commit to a $12m
development program over the next 12-18 months.

The engineering review, performed by the Company's Dallas-based reserve
auditor Forrest A. Garb & Associates ("Forrest Garb"), confirmed that
significant volumes of crude remain in the Beach Marcelle field that are
expected to be recoverable using standard secondary recovery techniques such
as water flooding. The proposed water flood program has been engineered to
produce approximately 1m to 1.5m barrels per year for the first 8 years
following initial production and has an attributable valuation of
approximately US$290MM (at a 10% discount rate) as determined by Forest Garb
taking into account all relevant project economics (capital and operating
expenditure, production taxes and royalties, and a US$85 per barrel WTI crude
oil price).

Independent Reserves, Resources and Valuation Report

Shortly before quarter-end, the Company announced the results of
Forest Garb's Independent Reserves, Resources and Valuation Report, which was
an analysis of the estimated reserves, prospective resources and future net
revenue attributable to the Company's portfolio of producing and development
assets onshore Trinidad and Texas. Forest Garb has previously completed a
similar report on the Trinidad licenses in June 2010.

The report included the 490% Proved (1P) Reserve increase in
Trinidad following the completion of engineering work on the secondary
recovery potential of the Company's Beach Marcelle block mentioned above,
however did not include the positive results from the Company's development
drilling program at North Chapman Ranch in Texas, recent extensions to the
Morne Diablo field in Trinidad where Range has drilled five successful
development wells to date, nor the significant exploration potential
associated with the Herrera formation, which underlies the existing Trinidad
production.

Set out below is Range's attributable interest in the reserves and
resources combined across the 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.

Category                       Oil     Natural Gas   Natural Gas
(Attributable volumes)      (MMbbls)      (Bcf)        Liquids
                                                       (MMBbls)
Proved (P1)                   16.1        10.8           0.7
Probable (P2)                  2.8         5.5           0.5
Possible (P3)                  3.7        14.6           1.3
Total 3P Reserves             22.6        30.9           2.5
Prospective Resource
Best                           1.7          -             -
High                          18.2          -             -
Total Reserves / Resources    42.5        30.9           2.5

Set out below is the total estimated Gross Reserves and Resources
split between Trinidad and Texas.

Category                                                Natural Gas
(Gross volumes)           Oil         Natural Gas         Liquids
                       (MMbbls)          (Bcf)           (MMBbls)
                    Trinidad Texas  Trinidad Texas   Trinidad   Texas

Proved (P1)           16.2    6.0     3.2     64.3      -        5.0
Probable (P2)          3.0    4.4      -      48.6      -        3.8
Possible (P3)          2.9    11.6     -     129.6      -       10.1
Total 3P Reserves     22.1    22.0    3.2    242.5      -       18.9
Prospective Resource
Best                   2.4     -       -       -        -         -
High                  25.0     -       -       -        -         -
Total Reserves /
Resources             27.4    22.0    3.2    242.5      -        18.9

Set out below is Range's attributable interest in the reserves and
resources 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.

Category                  Oil         Natural Gas       Natural Gas
(Attributable          (MMbbls)          (Bcf)            Liquids
volumes)                                                 (MMBbls)

                    Trinidad Texas  Trinidad Texas   Trinidad   Texas

Proved (P1)           15.4    0.7     3.2      7.6      -        0.7
Probable (P2)          2.2    0.6      -       5.5      -        0.5
Possible (P3)          2.0    1.7      -      14.6      -        1.3
Total 3P Reserves     19.6    3.0     3.2     27.7      -        2.5
Prospective Resource 
Best                   1.7     -       -       -        -         -
High                  18.2     -       -       -        -         -
Total Reserves /
Resources             39.5    3.0     3.2     27.7      -        2.5

Based on the reserve numbers cited above, Forrest Garb's estimated
net undiscounted cash flow value to Range for Proved (P1), Probable (P2) and
Possible (P3), along with discounted cash flow (at a 10% discount rate)
valuation based on two pricing scenarios:

- Flat US$85 / bbl oil and US$4.69 / Mcf gas

- Nymex forward strip prices reported on 1 October 2011

following reductions for royalties, opex, capex, production taxes
etc are as follows:

                               Flat              Nymex Forward Strip
                        $85/bbl & $4.69/Mcf           Price at
                                                   1 October 2011

Category              Undiscounted PV10 US$'m Undiscounted  PV10 US$'m
                         US$'m                   US$'m

Proved (P1)                787         452         885          495
Probable (P2)              211         115         243          129
Possible (P3)              335         134         420          162
Total Reserves           1,334         701       1,549          786
 

Trinidad

During the quarter the Company continued its initial 21 development
well work program on the Company's Morne Diablo license with the successful
completion of the QUN 116ST, QUN 117 and QUN 118ST shortly after quarter-end.

The QUN 116ST well encountered approximately 66 ft of net pay zone in the Lowe
Forest Sands and achieved initial natural pressure flow rates of 50 bopd and
subsequently stabilised to 30 bopd under natural pressure with an aim to put
the well on pump, after further decline, to increase the production rate to an
estimated 50 bopd.

The QUN 117 well encountered both the Lower Forest and Upper Cruse
objectives which suggests the extension eastward of the existing wells and
confirmed the Company's predictions that the current well program would extend
existing fields. The Upper Cruse section was placed on production with initial
production rates of 81 bopd under natural pressure. Like the QUN 116ST well,
this well will look to be optimized and be placed on pump and is forecast to
produce upwards of 50 bopd, whilst still maintaining the Lower Forest zone
potential which will be looked to be exploited at a later date.

Following the successful logging and completion of the QUN118ST well, initial
production testing saw the well producing at a rate of up to 102 bopd on a
5/32" choke under natural pressure from the shallow Forrest formation and has
stabilized at approximately 84 bopd.

Subsequent to quarter-end Rig 2 moved to the QUN 119 location and
drilled to its TD of 2,400 ft, targeting the Upper Cruse and Lower Forest
Sands. Well logs were taken over the Lower Forest interval and have indicated
approximately 280 ft of good oil sands with 100 ft of these sands displaying
higher quality potential for better than expected flow rates. Subsequent to
reaching TD, the well has flowed under natural pressure averaging circa 130
bopd as it comes online. These results are extremely encouraging as
indications are that the multi zone producing trends previously encountered in
the QUN 117 well appears to continue with the results of the QUN 119 well.

Rig 5 has been prepared to join the current operations and will be
targeting its first well, QUN 120 for the Lower Forest Sands in the coming
weeks.

Rig 8 currently awaits regulatory inspection which is expected
shortly and will be targeting the deeper Middle and Lower Cruse formations,
whilst Rig 1 has been awaiting replacement drill string, expected to be
received shortly, at which point in time the Company will have four fully
operational drilling rigs rapidly advancing the Company's current drilling
program on Morne Diablo.

Subsequent to quarter-end the Company announced the formation of a
partnership with Leni Gas & Oil plc ("LGO") to jointly develop their interests
in the Eastern Fields Area onshore southern Trinidad, including the Goudron
and Beach Marcelle fields.

In a binding Heads of Agreement ("HOA") Range and LGO have agreed
that, subject inter alia to full legal and technical due diligence:

- Range will acquire a 30% interest in Goudron E&P Limited ("GEPL")
 (a wholly owned subsidiary of LGO) in return for contributing US$4 million at
  completion;

- For a further contribution of US$4 million during the first 12
  months following completion Range will increase their holding in GEPL to 50%;

- LGO will operate the Goudron field during the initial work-over
  phase, but subject to Range exercising its option to acquire a total of 50% in
  GEPL, Range will become operator during the infill drilling and water flood
  phases;

- Range will obtain an accelerated return through 75% of the
  revenue interest until their initial investment is recovered;

- LGO will have the option to acquire a 15% interest in the Beach
  Marcelle waterflood project by contributing 22.5% towards the development
  costs (i.e. paying a 50% promote), up to US$7 million, towards the development
  costs;

- Range and LGO will work collaboratively to optimise and extend
  their joint interests in the Eastern Fields Area in Trinidad.

GEPL, holds the exclusive rights to purchase the existing
Incremental Production Service Contract ("IPSC") for the Goudron Field. Range,
through its subsidiary Trincan Oil Limited, holds a 100% interest in the Beach
Marcelle IPSC where it has approved the redevelopment of the existing field
production by means of a water-flood.

LGO's Goudron Field was originally developed by Texaco with 150
wells and holds an estimated 21.8 mmbbls of reserves in proven, probable and
possible categories. The block covers an area of 2,875 acres and produces from
the Goudron and Gros Morne (Cruse equivalent) sandstone formations at depths
between 300 and 3,500 feet. Current production averages below 100 bopd.

An initial work programme involving well work-overs and selected
infill wells is planned to bring Goudron production up to 450-500 bopd funded
by the consideration in this agreement. Additional infill drilling and
hydraulic fracturing of wells is expected to raise production to up to 4,000
bopd. Further potential exists in deeper reservoirs and through the
implementation of secondary recovery techniques, such as a water-flood.
Production from Goudron will commence on assignment of the IPSC and is
expected to rise steeply over the first 6 months of operations.

Georgia

During the quarter, the Mukhiani Well reached a total depth of
circa 1,550m, and following the analysis of the re-interpretation of the
seismic supported by the Mukhiani-1 Vertical Seismic Profiling ("VSP"),
results indicated that the well encountered previously unrecognised faults
that led to possible basement being encountered far earlier than predicted.

New fault trap and stratigraphic trapping potential has been
identified in the vicinity of the well and based on these findings, Range and
its partners have the option to side-track and test these targets. However,
the Company and its partners decided that, based on its exploration schedule
and the availability of the drilling rig that it would continue onto the next
proposed Kursebi well.

The joint venture suspended the Mukhiani well and preparations
began on the next proposed well site in the Kursebi Area. The Kursebi well is
targeting separate geological structures from the Vani area, with the Kursebi
target having been identified using different seismic lines for interpretation
purposes.

Subsequent to quarter-end, site construction commenced in readiness
for the spudding of the Company's second exploration well in Georgia - the
Namakhvani well (TD circa 3,500m) which is the Kursebi 6 Prospect.

Given the unexpected geological sequences encountered with the
first well, Range engaged new independent technical consultants, NTD Energy,
to perform a fresh review of all of the seismic and geological data across the
top 3 Kursebi prospects previously identified. The Kursebi-6 prospect was
identified as the most robust prospect with a more clearly defined structure
and indications of a significantly thicker Jurassic section, increasing
chances of encountering more reservoir and mature source rocks.

Below are the estimates of undiscovered Stock Tank Oil Initially In
Place (STOIIP) for the prospect.

                                         STOIIP (Mmbbls)
                                P90       P50       P10      Mean
K-6 Prospect - 100%            32.2      84.8      185.8     99.2
Attributable to Range - 40%    12.9      33.9       74.3     39.7

NTD Energy will assist in the management of the Company's drilling
program for the Namakhavani well along with the supervision of the proposed 2D
seismic program on block VIb. NTD Energy will also assist the Company in
looking at ways of identifying; promoting and developing the unconventional
(shale) plays that are said to exist across the two licence areas through the
introduction of farm-in partners.

Puntland

During the quarter Horn Petroleum Corp. ("Horn") completed sourcing
all drilling related materials with the majority of materials arriving on the
drilling site. Site preparation, including the drill site, air strip, ingress
route construction and water wells were completed, with the first well
(Shabeel-1) having spudded shortly after quarter-end. The Shabeel-1 well is to
drill to a total planned maximum depth of 3,800 meters.

The Sakson 501 rig will be used to drill both wells which are
expected to take approximately 90 days each for drilling and evaluation. These
two wells satisfy the first exploration period minimum work obligations of the
Production Sharing Contracts for both the Dharoor and Nugaal Blocks. They are
the first oil exploration wells to be drilled in over 20 years in the country

Shabeel-1 Well Site

The Shabeel and Shabeel North prospects are located on a Jurassic
aged rift system which is part of the same system that has proven to be highly
productive in the Masila and Shabwa Basins in Yemen that contain an estimated
6 billion barrels of oil*. Both prospects are very large fault block prospects
with internal estimates of Prospective Resources of over 300 million barrels
of oil (mean 100% basis), with Range's 20% attributable interest being over 60
million barrels. Source rocks are expected to be rich Jurassic Kimmeridgian
shales in the deep portion of the rift immediately down dip from the Shabeel
prospects. Reservoirs are expected to be sandstones and carbonates of the
Lower Cretaceous and Jurassic systems analogous to Yemen.

*Sourced from country and industry websites

Texas

North Chapman Ranch

During the quarter, the spudding of the third well (Smith #2)
commenced with the Smith #2 well being an offset to the existing Smith #1 well
and has been categorised as a proved undeveloped location. Drilling was
competed in December with the partners logging a significant show in the
Manley section (approx. 10,000 ft), possibly representing another productive
interval in addition to the primary field pay zone. Following the successful
drilling to target depth, a production liner was run and cemented, with the
well now awaiting final completion and fracture stimulation which is forecast
during the Q1 2012.

Shortly before quarter-end, the Albrecht #1 appraisal well was
spudded with surface casing successfully set. The Albrecht #1 appraisal well
is the fourth well in the North Chapman Ranch ("NCR") Project and if
successful , is anticipated to prove up reserves in the south-east portion of
the NCR license area, and support re-classification of current Possible (P3)
reserves into Probable (P2) and Proved (P1) categories.

Subsequent to quarter-end the joint venture has run 9 5/8" casing
on the Albrecht #1 well and is drilling ahead at 11,800 ft, just above the
Anderson Formation, with a proposed target depth of 14,500 ft. If productive,
the Anderson could add significant reserves to those of the Howell Hight
Formation, the primary field pay at NCR.

Following on from the Albrecht #1 well, the joint venture has the
option to continue with the development of the field with a possible four-well
program in 2012 under discussion among the joint venture partners.

East Texas Cotton Valley Prospect

During the quarter, testing continued on the Ross 3H horizontal
well, as individual zones are perforated and swabbed in to check fluid content
prior to any hydraulic fracturing. The Ross 3H was drilled to a total measured
depth of 8,500 ft. and showed good evidence of reservoir quality rock and oil
saturation while drilling.

Subsequent to quarter-end the operator on East Texas Cotton Valley
prospect, Crest Resources has received approval from the partners for fracture
stimulation of the Ross 3H Horizontal Well, and is in the process of
scheduling the frac work and subsequent testing during this quarter, which is
expected to confirm commerciality of this shallow oil field.

Corporate

Capital Raisings

During the quarter the Company raised circa $3.7m through the
exercise of options, with the balance of cash physically received from the
exercise of all outstanding options expiring 31 December 2011 occurring post
period end.

Appendix 5B Summary - Consolidated Statement of Cashflow

                                                              Year to date
                                              Current Quarter   (6 months)
                                                       $A'000       A$'000
Cashflows related to operating activities
Receipts from product sales and related
debtors                                                 4,004       10,748
Payments for:
- exploration and evaluation                          (8,814)     (14,011)
development                                           (2,544)      (3,451)
production                                            (3,009)      (7,224)
administration                                        (2,661)      (5,981)
Dividends received                                          -            -
Interest and other items or a similar nature
received                                                   32          138
Interest and other costs of finance paid                    -            -
Taxes paid                                              (278)      (1,031)
Other                                                       -            -
                       Net operating cashflow        (13,270)     (20,812)
Cashflows related to investing activities
Payments for the purchase of:
- prospects                                           (1,841)      (6,040)
equity investments                                      (100)      (2,100)
other fixed assets                                      (219)        (337)
Proceeds from the sale of:
- prospects                                                 -            -
other fixed assets                                          -            -
Loans to other entities                               (2,395)      (2,395)
Other - net cash acquired on acquisition of
subsidiary                                                  -          628
                      Net investing cashflows         (4,555)     (10,244)
Cashflows related to financing activities
Proceeds from issue of shares, options etc.             3,668       19,431
Proceeds from sale of forfeited shares                      -            -
Proceeds from borrowings                                    -            -
Repayment of borrowings                                     -            -
Dividends paid                                              -            -
Costs associated with issue of shares (refer
to note)                                                    -        (766)
                      Net financing cashflows           3,668       18,665
       Net increase / (decrease) in cash held        (14,157)     (12,391)
Cash at the beginning of the quarter / year
to date                                                19,126       17,360
Exchange rate adjustments                               (155)        (155)
 
CASH AT THE END OF THE QUARTER                         4,814*       4,814*

* balance of cash physically received from the exercise of all
outstanding options expiring 31 December 2011 occurring post period end


Yours faithfully

Peter Landau
Executive Director


Contacts

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


Australia                                                        London

PPR                                                              Tavistock Communications
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 (Joint Broker)
Stuart Laing                                                     Michael Parnes
Tel: [phone]                                           Tel: [phone]
 
                                                                 Panmure Gordon (Joint Broker)
                                                                 Katherine Roe / Brett Jacobs
                                                                 Tel: [phone]

Range Background

Range Resources Limited 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, Texas, USA and Trinidad.

- In Trinidad Range recently completed the acquisition of a 100% interest in
holding companies with three onshore production licenses and fully operational
drilling subsidiary. Independently assessed Proved (1P) reserves in place of
15.4 MMbls with 19.6 MMbls of proved, probable and possible (3P) reserves and
an additional 20 MMbls (mean) of prospective resources.

- In the Republic of Georgia, Range holds a 40% farm-in interest in onshore
blocks VIa and VIb, covering approx. 7,000sq.km. Range completed
a 410km 2D seismic program with independent consultants RPS Energy identifying
68 potential structures containing an estimated 2 billion barrels of
undiscovered oil-in-place (on a mean 100% basis) with the first (Mukhiani-1)
of two exploration wells having spudded in July in 2011. Re-interpreted
seismic supported by the Mukhiani-1 vertical seismic profiling has identified
new fault and stratigraphic trapping potential with the possibility of a side
track well to be drilled post additional seismic in 2H 2012.

- In Puntland, Range holds a 20% working interest in two licences encompassing
the highly prospective Dharoor and Nugaal valleys. The operator and 60%
interest holder, Horn Petroleum Corp. (TSXV: HRN) has spudded the first well in a
two well programme in early 2012 targeting 300mmbls and 375mmbbls of best
estimate Prospective Resources (100% basis). Site construction has commenced
on the second well with the setting of the 30 inch surface casing and the
drilling of a 50 meter pilot hole in readiness for spudding following the
completion of the first well.

- Range holds a 25% interest in the initial Smith #1 well and a 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 3P reserves
in place (on a 100% basis) of 242 Bcf of natural gas, 15 mmbbls of oil and 19
mmbbls of natural gas liquids.

- Range holds a 21.75% interest in the East Texas Cotton Valley Prospect in
Red River County, Texas, USA, where the prospect's project area encompasses
approximately 1,570 acres encompassing a recent oil discovery. The prospect
has independently assessed 3P reserves in place (on a 100% basis) of 3.3mmbbls
of oil.

The reserves estimates for the 3 Trinidad blocks and update
reserves estimates for the North Chapman Ranch Project and East Texas Cotton
Valley 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 worldwide 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 an 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 information contained in this announcement with respect to the
Goudron Field in Trinidad has been reviewed and approved by Neil Ritson, Chief
Executive Officer and Director for Leni Gas & Oil Plc who has 35 years of
relevant experience in the oil industry. Mr. Ritson is a member of the Society
of Petroleum Engineers, an Active Member of the American Association of
Petroleum Geologists and is a Fellow of the Geological Society of London.

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").

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.

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.

SPE Definitions for Proved, Probable, Possible Reserves and
Prospective Resources

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 regulations.

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
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.