Range Resources busy in Trinidad, Puntland and Georgia
Wed 9:26 am In Puntland, Range holds a 20% working interest in licences in the Dharoor and Nugaal valleys.
Oil and gas group Range Resources (LON:RRL, ASX:RRS) said gross production for the three months to December was 381k mcf of gas and 72,000 barrels of oil, out of which its interest was 85k mcf of gas and 51,500 barrels of oil.
Last month, Range and Leni Gas and Oil (LON:LGO) agreed jointly to develop Range's Beach Marcelle field and LGO's Goudron oil field, which lies immediately adjacent in Trinidad.
Range is also part of the consortium that is drilling first exploration wells in Puntland in Somalia for twenty years. The Shabeel-1 well in the Dharoor Valley in Puntland spudded last month, while initial operations have also commenced on the second well Shabeel North-1 ahead of spudding.
In Puntland, Range holds a 20% working interest in licences in the Dharoor and Nugaal valleys. The operator and 60% interest holder is Horn Petroleum Corp.
Range also has interests in the Republic of Georgia and also in Texas in the US.
Gross output in the previous quarter was gas 446k mcf with Range’s Interest 97k mcf and Oil 77,706 bbls with Range’s interest - 51,146 bbls.
Cash holdings at the end of the quarter were A$4.1 million.
Range Resources Ltd
RGRYY | 1/17/2012 2:00:00 AM
RANGE RESOURCES LTD - Spudding of Historical Puntland Exploration Well
17 January 2012
SPUDDING OF HISTORICAL PUNTLAND EXPLORATION WELL
* Spudding of the Shabeel-1 well, the first of two planned landmark
exploration wells, in the Dharoor Valley, Puntland, Somalia
* The first oil exploration well to be drilled in over 20 years in Puntland
targeting Prospective Resources of over 300 million barrels of oil (mean
* Initial operations also commenced on the Shabeel North-1 well (second
Range Resources Limited ("Range" or "the Company"), together with its joint
venture partners, Horn Petroleum Corporation (TSX: HRN) and Red Emperor
Resources (ASX: RMP / AIM: RMP), is pleased to announce the spudding of the
Shabeel-1 well on the Dharoor Block in Puntland, Somalia. Horn Petroleum, the
well operator, is currently preparing to drill ahead to a total planned maximum
depth of 3,800 meters. Drilling operations have also commenced on the Shabeel
North-1 well with the setting of the 30 inch surface casing and the drilling of
a 50 meter pilot hole.
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.
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.
Range's Executive Director Peter Landau commented "We consider the spudding of the historic Shabeel-1 well a monumental achievement which could not be achieved without the immense contributions of Range personnel, the Puntland Government, operator Horn Petroleum / Africa Oil and, most importantly, the people of Puntland and the Dharoor Valley communities."
Peter Landau continues, "We hope that success at the Shabeel well will, given
the royalty and profit share arrangements in place, lead to significant
infrastructure and employment benefits for Puntland and Greater Somalia. I also
think that it is appropriate to commend Range shareholders who have stuck with
the Company and supported us over the past 6 years as we now realise one of our
key objectives in drilling a well in Puntland."
Issue of Shares
Range Resources Ltd (the "Company") is also pleased to announce the issue of the following securities:
* 18,366,450 Ordinary Fully Paid Shares to be issued in a placement at an
issue price of $0.115 per share as part of underwriting and placing
agreements in relation to the listed options ($0.05, 31 December 2011)
* 20,890,957 Ordinary Fully Paid Shares to be issued upon exercise of
unlisted options ($0.1898, 30 September 2016)
Application will be made for the 39,257,407 new shares to be admitted to trading on the ASX and AIM. Trading in the new shares is expected to commence on or around 24 January 2012.
Following the issue of these securities the total number of securities on issue
are as follows:
2,092,495,032 Ordinary Fully Paid Shares (RRS)
855,166 Unlisted Options (£0.04, 30 June 2015)
7,058,824 Unlisted Options (£0.17p, 30 April 2016)
3,177,029 Unlisted Options (A$0.50, 30 June 2012)
20,890,958 Unlisted Options (A$0.1898, 30 September 2016)
15,000,000 Unlisted Options (£0.075p, 15 January 2017)
17,921,146 Class A Performance Shares
17,921,146 Class B Performance Shares
*Sourced from country and industry websites
Range Resources Limited
Tel : +61 (8) 8 9488 5220
PPR Tavistock Communications
David Tasker Ed Portman/Paul Youens
Tel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7920 3150
Em: firstname.lastname@example.org Em: email@example.com
RFC Corporate Finance (Nominated Advisor) Old Park LaneCapital (Joint Broker)
Stuart Laing Michael Parnes
Tel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188
Panmure Gordon (Joint Broker)
Katherine Roe / Brett Jacobs
Tel: +44 (0) 207 459 3600
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
* In the Republic of Georgia, Range holds a 40% farm-in interest in onshore
blocks VIa and VIb, covering approx. 7,000sq.km. 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 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 spud
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 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
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
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.
Suite 1A, Prince's House, 38 Jermyn Street, London SW1 6DN t: +44 (0)207 025 7040, f: +44 207 287 8028
Ground Floor, 1 Havelock Street, West Perth WA 6005, Australia t: +61 8 9488 5220, f: +61 8 9324 2400
DHAROOR, Somalia, Jan 17 (Reuters) - Canadian oil and gas exploration company Africa Oil Corp. began drilling an exploratory well in Somalia's semi-autonomous Puntland region on Tuesday, the first to be sunk in the country since civil war erupted two decades ago.
While there has been speculation about finding oil in the anarchic Horn of Africa country for decades, it has no proven hydrocarbon reserves. The prospect of oil beneath Dharoor's sandy, arid plains has excited officials of the impoverished region.
"Soon Puntland will be out of hunger and shall stop asking assistance from the international community. We shall never beg, we shall be begged if the fuel comes out," Puntland President Abdirahman Mohamud Farole said at the spudding ceremony.
"This fuel well is not only for Puntland. It will benefit all Somalis if Somalia becomes one with a common constitution," Farole said, while laying a foundation stone.
Somalia, mired in conflict since warlords in the early 1990s and then Islamist militants reduced the government to impotence, represents one of the final frontiers in Africa to be explored.
Africa Oil and its partners in the two Puntland licences, Australia's Red Emperor and Range Resources, target prospective resources of over 300 million barrels of recoverable oil.
Horn Petroleum, a newly created oil explorer focused on Puntland, is drilling the Shabeel-1 and Shabeel North-1 wells within the Dharoor Valley block. Africa Oil has a 51 percent stake in Horn Petroleum.
"The drilling of Shabeel-1 fuel well is not a one-day decision; it came after much effort and agreement with Puntland," David Grellman, Horn Petroleum's president and CEO, said.
Dozens of workers buzzed around the site under the gaze of heavily armed Puntland troops. Shabeel-1 was spudded on Tuesday, and drilling operations have also started at Shabeel North-1.
The drilling in the Dharoor valley is a milestone in evaluating Somalia's oil potential, Grellman said, adding that the drilling would last 90 days.
The site is a humid, barren area of about 2,600 sq km (1,004 sq miles) near Dharoor town, some 350 km (217 miles) from the port of Bosasso on the Gulf of Aden.
The Shabeel-1 and Shabeel North-1 prospects are located on a Jurassic aged rift system, which is part of the same system that has proven to be highly productive in Yemen.
Puntland's government signed a production-sharing deal in January 2007.
Puntland faced stiff opposition from the Western-backed interim government at the time, part of which refused to honour a 2005 deal reached with Australian independent Range Resources, giving it exclusive rights over all minerals and petroleum.
Relations between Mogadishu and the Puntland authorities are on the mend. A new U.N.-backed roadmap targets a new federal constitution that brings the semi-autonomous regions into a closer relationship with central government.
Africa Oil said last year it planned to drill up to eight wells in blocks it holds interests in across east Africa, including the two in Puntland. (Writing by Abdi Sheikh; Editing by Richard Lough and Jane Baird)
Monday, February 6, 2012
drilling first exploration wells in Puntland in Somalia
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