Trinidad Update

24 January 2013

 
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000


By e-lodgement

TRINIDAD UPDATE

Range Resources Limited ("Range" or "the Company") is pleased to announce the
following update with respect to the Company's Trinidad operations with the
following highlights:

- The QUN 139 well drilling ahead at 950 ft. with a revised target depth of 1,300
  ft. having encountered approximately 80 ft. of good quality oil sands to 945 ft.;

- The QUN 135 well finds more than 80 ft. of oil pay and will be deepened after
  indications of a possible new pay zone near TD;

- The Morne Diablo Waterflood programme is currently being simulated / modeled,
  with completion estimated in February;

- The Beach Marcelle programme is looking to commence upon receipt of the
  approvals to deepen six of the existing wells targeting production of 150-300
  bopd per well; and

- The Company has received the final revised farm-out agreements that will see an
  initial reduction in the enhanced royalty currently being paid by the Company. 
  The revised rates at 1,000 bopd will see net back prices increase to circa $40 /
  barrel before tax and circa $50 / barrel before tax at 2,000 bopd.

Lower Forest Development Update

Development of the Lower Forest formation continues with the QUN 139 well
drilling ahead at 950 ft. with a revised target depth of 1,300 ft. having
encountered approximately 80 ft. of good quality oil sands to 945 ft. The QUN
139 location is contiguous to producing wells QUN 119 and QUN 129 which
achieved initial production rates of 129 bopd and 138 bopd, respectively. Both
wells still flow under natural pressure, with QUN 129 having now produced for
12 months since first production.

The QUN 140 well is expected to spud shortly, with the Company awaiting receipt
of necessary approvals. The well will be drilled to a target depth of
approximately 1,000 ft. The QUN 140 well is contiguous and up-dip to the
recently drilled QUN 138 well. As previously announced, the logging of the QUN
138 well indicated 100 ft of net oil sands across a number of horizons
including a highly resistive zone between 770 and 810 ft. The Company awaits
approvals which are anticipated shortly, with the production rig ready to move
immediately onto site, perforate the well, and place it into production.

Drilling Deeper Formations

The Company is pleased to report that after operational delays, the QUN 135 has
been successfully drilled to its planned total depth of 3,500 ft., with
indications that it may have penetrated a new Middle Cruse pay zone. Following
conditioning of the well bore, logging operations were initiated and more than
80 ft. of net oil pay was identified in the Lower Forest, Upper Cruse and Middle
Cruse formations. Based on oil shows while drilling and induction logs indicating
that the well reached its planned total depth in the top of a Middle Cruse oil
zone, the 135 well will now be deepened to confirm what may represent a
previously undiscovered reservoir in the Middle Cruse section. Following
deepening of the well and evaluation of open hole logs, the Company will
determine which of the multiple oil zones present is the best candidate for
initial completion.

In addition to the wells mentioned above, the Company is looking at re-entering
four Lower Forest wells that have experienced comingling of oil and water
sands. Remedial work will be performed on these wells with a small work-over
rig, with additional perforations to be added in two of the four wells. This
work is expected to improve the performance of these wells and add further to
production.

The MD 248 well has reached 4,000 ft. and will continue to drill towards the
target depth of 6,500 ft. to test the Lower Cruse formation. Following
equipment shortages that resulted in drilling delays, additional rig components
have been procured to reduce future downtime.   

The previously drilled MD 19 well encountered well-developed Lower Cruse sands.
However, they were structurally low and water-saturated at that location.

Morne Diablo Waterflood Project

The shallow Forest water flood project on the Morne Diablo license is currently
being simulated / modeled, with completion estimated for mid-February followed
soon thereafter by  a presentation and application for approval to the
regulatory authorities, with development still forecast to commence mid 2013.

Beach Marcelle License

The Company has finalised the Environmental Impact Assessment (EIA) to be
submitted to the Environmental Management Authority (EMA) in application for a
Certificate of Environmental Clearance (CEC) to drill up to 40 wells and
conduct the water flood program. It is anticipated the EMA will take
approximately two to three months to review and grant environmental approval.
Final approvals will then be sought from the regulatory authorities. Once all
permits and approvals are in place, Range will commence development, currently
forecast for mid-2013, after which the Company will look to commence
preparations for the 40 well work program and water flood.

The Company has also applied for a separate CEC to deepen six wells in the
Beach Marcelle license (without EIA) and anticipates that a favourable response
will be received soon. Following receipt of the CEC for the deepening of these
six wells, the Company will move one of the medium capability rigs to the Beach
Marcelle license to commence the drilling program.

The Company has recently received approval of a CEC on the Beach Marcelle
license (without EIA) to build a bio-remediation site, to aid in waste
management of the proposed drilling program. These bio-sites are present in all
Range fields and unique in allowing Range complete on-site control of the
drilling-remediation process.

2013 Outlook

Range is looking forward to a prospective and busy 2013 across the Company's
three onshore licenses. The Company is working towards having all six of its
drilling rigs running to increase production and cash flow, as well as
resolving the operational delays that have recently been experienced by
implementing processes and procedures across the board to minimise downtime.
 With a track record of early drilling success, the Company remains focused on
maintaining the continuous drilling and completion operations required for
sustainable production growth.

Development of the Lower Forest formation on the Morne Diablo license will
continue, utilising the Company's shallower capacity rigs, with an inventory of
40+ wells still to be drilled. This shallow reservoir development is currently
self-funding, with revenue from pre-existing wells and the Lower Forest wells
drilled to date more than offsetting the capital required for these shallow
wells.

As mentioned above, work will commence on the Beach Marcelle block upon receipt
of the approved CEC with respect to the deepening of six existing wells. These
wells are to be drilled to depths between 3,000 and 4,000 ft., targeting the
prolific Gros Morne formation with historical wells having demonstrated initial
production in the range of 150-300 bopd.

Once all six rigs are operational, the Company will move one of the medium
capacity rigs to the South Quarry field to commence testing and development of
the shallow targets that have been identified on the license. The initial
shallow well program will involve the drilling of up to 10 wells and,
contingent upon the success of this program, development will continue in a
similar manner as the Lower Forest development.

In addition, following completion of the MD 248 well, the Company will spud the
first of a series of wells that will test the prolific Herrera formation as a
primary exploration target, with the Forest and Cruse formations as secondary
objectives.

Revised License Agreements

The Company has received the final revised agreements that will see an initial
reduction in the enhanced royalty currently being paid by the Company.  The
revised terms will see an improvement in the net back per barrel of oil
produced. The revised royalty rates at production rates of 1,000 bopd will see
net backs increase to circa $40 / barrel before tax and circa $50 / barrel
before tax at 2,000 bopd - assuming $90 barrel oil and opex at similar levels. 
Only minor administrative items relating to market communications remain to be
resolved.

In addition, discussions continue with the regulatory agencies and other
farm-in operators for further performance-based drilling and production
incentives. Updates will be provided upon progress when available.

Executive Director Peter Landau commented:

"There is no doubt that it has been a challenging few months given the
operational delays experienced in getting certain wells drilled in Trinidad and
the softening of the Company's share price.  As we continue to address the
supply chain issues that resulted in those delays, it is important to remember
the key positives that will continue to underpin Range's performance moving
forward in the short to medium term.

Trinidad is fully funded through both existing facilities, the Texas sale and /
or other reserve based lending options that are available to the Company.  The
work program will continue assummarisedabove and further capital will be
deployed to ensure operational delays moving forward are reduced significantly
with spare plant and equipment and an increased number of specialised personnel.  
The revised fiscal terms will only serve to further benefit increased production 
over the coming year as production ramp up moves into full swing.

With Range close to finalising the GIG joint venture in Georgia, the financial
and operational focus will be firmly placed on Trinidad and our target of 6,000
bopd by the second half of 2014 based on known PDP and PUD Reserves."      


Yours faithfully


Peter Landau
Executive Director

 
Contacts

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

RFC Ambrian Limited (Nominated Advisor)               Old Park Lane Capital (Joint Broker)
Stuart Laing                                          Michael Parnes
Tel: [phone]                                Tel: [phone]

Fox-Davies Capital Limited                            GMP Securities Europe LLP (Joint Broker)
Daniel Fox-Davies / Richard Hail                      James Pope / Chris Beltgens                       
Tel: [phone]                             Tel: [phone]

PPR (Australia)
David Tasker                                                                                     
Tel: [phone]                                                             
Em: [e-mail]

 
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, Trinidad and Colombia.

In Trinidad Range holds a 100% interest in holding companies with three onshore
production licenses and fully operational drilling subsidiary. Independently
assessed Proved (P1) reserves in place of 17.5 MMbls with 25.2 MMbls of proved,
probable and possible (3P) reserves and an additional 81 MMbls of unrisked best
estimate 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) exploration
well having spudded in July in 2011. The Company is focussing on a revised
development strategy that will focus on low-cost, shallow appraisal drilling of
the contingent resources around the Tkibuli-Shaori ("Tkibuli") coal deposit,
which straddles the central sections of the Company's two blocks. 

In Puntland, Range holds a 20% working interest in two licenses encompassing
the highly prospective Dharoor and Nugaal valleys. The operator and 60%
interest holder, Horn Petroleum Corp. (TSXV:HRN) has completed two exploration
wells and will continue with a further seismic and well program over the next
12-18 months.

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. Independently assessed 3P reserves in
place (on a 100% basis) of 228 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, 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.

Range is earning a 65% (option to move to 75%) interest in the highly
prospective PUT 6 and PUT 7 licences in Putumayo Basin in Southern Colombia.
The Company will undertake a 350km2 3D seismic program across the two licences
and drill one well per licence, as well as looking to re-enter a previously
suspended well that had a significant historical reserve estimate.


Table of Reserves and Resources

Detailed below are the estimated reserves for the Range project portfolio.

All figures in MMboe  Gross Oil Reserves    Range's      Net Attributable                
                                            Interest                                      
                                                                          
Project                1P    2P     3P                   1P   2P    3P      Operator    
                                                                                 
Oil & NGL                                                                        
                                                                                 
Texas - NCR *        16.4  25.2   35.3       20-25%      2.2  3.4   4.8    Western Gulf  
                                                                                 
Texas - ETCV          1.0   1.6    3.3          22%      0.2  0.3   0.6    Crest Resources
                                                                                 
Trinidad             17.5  20.2   25.2         100%     17.5 20.2  25.2    Range     
                                                                                 
Total Oil & Liquids  34.9  47.0   63.8                  19.9 21.3  28.9                 
                                                                                 
Gas Reserves                                                                     
                                                                                 
Texas - NCR *        106.0 162.7  228        20-25%     11.7 18.1  25.4    Western Gulf  
                                                                                 
Total Gas Reserves   106.0 162.7  228                   11.7 18.1  25.4                 
                                                                                 
* Reserves attributable to Range's interest in the North Chapman Ranch asset,
which are net of government and overriding royalties as described in the
Forrest Garb report.

Detailed below are the estimated resources and oil-in-place delineated across
Range's portfolio of project interests.

All figures in MMboe        Gross Oil       Range's     Net Attributable              
                            Resources       Interest                                      
                                                                          
Project                 Low  Best/  High                Low  Best/  High     Operator   
                             Mean                            Mean                        
                                                                                                        
Prospective Resources                                                            
                                                                                 
Trinidad                8.1   40.5  81.0      100%      8.1  40.5   81.0     Range    
                                                                                 
Total Prospective       8.1   40.5  81.0                8.1  40.5   81.0              
Resources                                                                        
                                                                                 
Undiscovered                                                                     
Oil-In-Place                                                                     
                                                                                 
Puntland                 -   16,000   -        20%       -  3,200     -      Horn Petroleum    
                                                                                                     
Georgia                  -    2,045   -        40%       -    818     -      Strait Oil & Gas 
                                                                                                      
Colombia                 -      7.8   -     65-75%       -  5.1-5.8   -      Petro Caribbean   
                                                                     
                                                                                 
All of the technical information, including information in relation to reserves
and resources that is contained in this document has been reviewed internally
by the Company's technical consultant, Mr Mark Patterson. Mr Patterson is a
geophysicist who is a suitably qualified person with over 25 years' experience
in assessing hydrocarbon reserves and has reviewed the release and consents to
the inclusion of the technical information.              

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.

The Contingent Resource estimate for CBM gas at the Tkibuli project is sourced
from the publically available references to a report by Advanced Resources
International's ("ARI") report in 2009: CMM and CBM development in the
Tkibuli-Shaori Region, Georgia. Advanced Resources International, Inc., 2009.
Prepared for GIG/Saknakhshiri and U.S. Trade and Development Agency. - 
.globalmethane.org/documents/toolsres_coal_overview_ch13.pdf.  Range's
technical consultants have not yet reviewed the details of ARI's resource
estimate and the reliability of this estimate and its compliance with the SPE
reporting guidelines or other standard is uncertain.  Range and its JV partners
will be seeking to confirm this resource estimate, and seek to define reserves,
through its appraisal program and review of historical data during the next 12
months.

Reserve information on the Putumayo 1 Well published by Ecopetrol 1987.


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

Proved Reservesare 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 Reservesare 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 Reservesare those additional reserves which analysis of geoscience and
engineering data indicate are less likely to be recoverable than Probable
Reserves.

1P refers to Proved Reserves, 2P refers to Proved plus Probable Reserves and 3P
refers to Proved plus Probable plus Possible Reserves.

Prospective Resourcesare 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.

Contingent Resourcesare those quantities of hydrocarbons which are estimated,
on a given date, to be potentially recoverable from known accumulations, but
which are not currently considered to be commercially recoverable.

Undiscovered Oil-In-Placeis that quantity of oil which is estimated, on a given
date, to be contained in accumulations yet to be discovered. The estimated
potentially recoverable portion of such accumulations is classified as
Prospective Resources, as defined above.