Trinidad & Texas Reserves & Valuation R...

23 December 2011

The Manager

Company Announcements

Australian Securities Exchange Limited

Level 6, 20 Bridge Street

Sydney NSW 2000

By e-lodgement

INDEPENDENT RESERVES, RESOURCES AND VALUATION REPORT

Highlights:

- Independent Petroleum Consultants, Forrest A Garb and Associates
have completed a consolidated, independent reserves, resources and valuation
report on the Company's worldwide production and development assets, being its
project interests in Trinidad and Texas

- Reserves report estimates total gross Proved, Probable and
Possible (3P) Reserves across these assets of:

           - 44.1 MMBbl of oil (net attributable to Range* - 26.4 MMBbl)

           - 19 MMBbl of natural gas liquids (net attributable to Range* - 3.7
             MMBbl)

           - 246 Bcf of natural gas (net attributable to Range* - 43.0 Bcf)

- Reserves report estimates total gross Prospective Resources
  across these assets of:

           - 27 MMBbl of oil (net attributable to Range* - 20 MMBbl)

- Independent Discounted Cash Flow ("DCF") valuation (at 10%
  discount rate) of Range's net interest in 2P Reserves of:

           - US$568m (using flat US$85/bbl and US$4.69 Mcf price assumption)

           - US$624m (using Nymex Futures Price Deck @ 1 October 2011
           assumption)

                                      * before royalties & government interest

Following the acquisition of 100% of the Trinidad assets completed
by Range Resources Limited ("Range" or "the Company") in mid-2011, the Company
engaged Independent Petroleum Consultants Forrest A. Garb and Associates
("Forrest Garb") to complete 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,
having previously completed a similar report on the Trinidad licenses in June
2010.

The current report includes the recently announced 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,
however it does 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. The Company will look to engage Forrest Garb
to update the current report once results from the ongoing drilling programs
are known.

Range holds a 100% interest in three onshore Trinidad licenses;
Morne Diablo, South Quarry and Beach Marcelle, a 21.75% interest in East Texas
Cotton Valley Prospect in Red River County Texas and a 25% interest in the
Smith #1 well and 20% interest in subsequent wells in the North Chapman Ranch
Project in Nueces County Texas. Range is the operator of the Trinidad
licenses, while the Texas licenses are operated by its private joint venture
partners.

Set out below is Range's attributable interest in the net
recoverable reserves 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 (MMbbls)  Natural Gas     Natural Gas
                                            (Bcf)      Liquids (MMBbls)
Proved (P1)                    16.1          10.8            29.2
Probable (P2)                  2.8           5.5             21.2
Possible (P3)                  3.7           14.6            56.5
Total Reserves                 22.6          30.9           106.9
Prospective Resource
  Best                         1.7            -               -
  High                         18.2           -               -
Total Reserves / Resources     42.5          30.9           106.9

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

Category             Oil (MMbbls)   Natural Gas (Bcf)   Natural Gas Liquids
                                                             (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 Reserves        22.1    22.0     3.2      242.5      -         18.9
Prospective
Resource
  High                2.4      -        -         -        -          -
  Best                25.0     -        -         -        -          -
Total Reserves /      27.4    22.0     3.2      242.5      -         18.9
Resources

Set out below is Range's 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.

Category             Oil (MMbbls)   Natural Gas (Bcf)   Natural Gas Liquids
                                                             (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 Reserves        19.6    3.0      3.2      27.7       -         2.5
Prospective
Resource
  High                1.7      -        -         -        -          -
  Best                18.2     -        -         -        -          -
Total Reserves /      39.5    3.0      3.2      27.7       -         2.5
Resources

The reserve numbers above do not take into account the recently
drilled Smith #2 well, nor the Albrecht #1 well, which has recently spudded
this week. The Company anticipates that the two wellswill result in the
upgrade of current Possible (P3) reserves on the North Chapman Ranch project
into the Probable (P2) and Proved (P1) categories, assuming success.

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
                                                      Price at
                        $85/bbl & $4.69/Mcf
                                                   1 October 2011
Category              Undiscounted PV10 US$'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
 
The cost assumptions for the valuations are as estimated by Range
and provided to Forest Garb and have not been escalated for valuation
purposes. The price for natural gas liquids has been assumed to be 47.824% of
the prevailing oil price.

An extract of Forrest Garb's report will be available on Company's
website, which includes further details on the properties and the assumptions
used to generate the results.

Range's Executive Director Peter Landau commented, "the Company is
extremely buoyed by the fact that we have a significant valuation underpin to
Range on its Trinidad and Texas assets as evidenced by this report, with
significant upside potential still to be established through:

    - completion of the two development well program (Smith #2 and
      Albrecht) on North Chapman Ranch;

    - ongoing testing of the Ross 3H horizontal well in its East Texas
      Cotton Valley play;

    - integration of the results from the current 21 well drilling
      program on Morne Diablo into this report; and

    - integration of the highly prospective Herrera potential following
      completion of the 3D seismic reprocessing due shortly and subsequent drilling
      during 2012 .

Range is highly encouraged by the reserves and valuation assessed
by Forest Garb, which significantly exceeds Range's current market
capitalisation without even taking into consideration the huge potential that
exists on its exploration assets in Georgia and Puntland, especially given the
imminent spudding of two exploration wells in both of these regions in January
2012. Range management looks forward to realising this potential value for
shareholders and adding further value through ongoing exploration,
development, production and project acquisition activities."

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 gross recoverable 1P reserves in
place of 15.4 MMbls (on a mean 100% basis) with 19.6 MMbls recoverable 3P
reserves with an additional 20 MMbls 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. Currently, Range has recently
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 VSP new fault trap 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 with the operator and 45%
interest holder, Africa Oil Corp (TSXV: AOI) planning to commence the two well
programme in 2011 (targeting (on a mean 100% basis) 300mmbls and 375mmbbls of
best estimate Prospective Resources) following the recent awarding of the rig
contract. Site construction complete in readiness for spudding first well late
December 2011.

- 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 (on a mean 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. Independently
assessed gross recoverable reserves in place (on a mean 100% basis) of
3.3mmbbls of oil

[1] Forrest A. Garb & Associates are Petroleum Consultants based in
the United States with offices in Dallas, Texas. Forrest A. Garb & Associates,
Inc. (FGA) is a consulting firm comprised of professional petroleum engineers,
geologists, and technical support personnel with diversified backgrounds in
all phases of the petroleum and energy industries. The firm offers a complete
range of geological and engineering services for the petroleum and energy
sectors. Forrest A. Garb & Associated have consented to the reference to them
in this announcement and to the estimates of oil, natural gas and natural gas
liquids and valuations provided herein. These estimates were formulated in
accordance with the guidelines of the Society of Petroleum Engineers ("SPE").
Key definitions are set out at the end of this release. The full SPE Reserve
definitions can be found on the SPE website at spe.org as well as in the
Forrest Garb report as attached and on the Range website.

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 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 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.

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 assumingtheir discovery and development
and may be sub-classified based on project maturity.