17 June 2010
Australian Securities Exchange
2 The Esplanade
PERTH WA 6000
RANGE ACQUIRES INTEREST IN SECOND TEXAS OIL FIELD
Building on its success at North Chapman Ranch, Range Resources Limited (“Range” or “the
Company”) is pleased to announce that it has acquired a 13.56% interest in approximately 1,570
gross acres encompassing a recent oil discovery located in Red River County, Texas, for total
leasehold acquisition costs of $US254,000.
Development of the shallow oil reservoir in the Cotton Valley formation is expected to begin in July
with the drilling of a horizontal appraisal well in the field, where gross recoverable reserves could of
between 4 to 6 million barrels of oil.
The East Texas Cotton Valley oil accumulation was discovered in March of 2008 with the drilling of a
vertical well to approximately 5,500 ft. The initial well encountered more than 100 ft. of gross oil pay
at approximately 5,300 ft and was immediately placed into production. A horizontal appraisal well
spudded in December of 2008 encountered good quality reservoir in a lateral section approximately
1,500 ft. long, but was badly damaged during completion. A second horizontal well is expected to
spud in the third quarter of this year. If successful, the upcoming well will trigger further
development of the Cotton Valley field that could ultimately require more than 20 additional wells,
with a targeted average recovery per well of over 220,000 barrels of oil. With horizontal well costs
estimated at $1.57MM, gross finding & development costs are expected to be less than $7. 15/bbl.
Figure 1: County Map of the State of Texas
The recoverable reserves estimates represents the low to high range of the volume of oil that it
considers will be economically recoverable form the reservoir. Whilst this estimate has been
reviewed by the Company’s technical consultant and advisors, Texas Energy Advisors LLC, who have
over 30 years of relevant experience in the oil and gas sector, it has not yet been signed off as being
consistent with the SAPE reserve and resources reporting guidelines.
In this respect, the Company has commissioned independent petroleum consultants Lonquist & Co.
LLC to certify the recoverable reserves of the Cotton Valley formation located on the Range acreage.
Results of the reserve report are expected shortly and will be released as soon as they are available.
RUSSELL BEVLY #1 APPRAISAL WELL UPDATE
Range would also like to announce an update on the Russell Bevly #1 appraisal well as part of the
North Chapman Ranch Joint Venture’s multi‐well program in Texas.
As previously announced, the well has been drilled to the intermediate casing depth of 11,400 ft.
Following this, open hole logs were acquired and 9 5/8" casing set and cemented. Drilling has
recommenced towards the proposed target depth of ~14,000 ft (4,268m).
Figure 2: Precision #37 rig drilling ahead on Russell Bevly #1 Well
Name of well Russell Bevly #1
Spud date 9 May 2010
Current depth ~12,671 ft (3,863m)
Proposed total depth ~14,000 ft (4,268m)
RRS working interest 20%
Range will provide regular updates on the progress on the drilling of the Russell‐Bevly well.
SMITH #1 WELL UPDATE
The Company would also like to announce that the fracture stimulation of the Smith #1 well is
anticipated to be completed by the end of next week with results to be reported once received.
The Company would also like to announce that it has received commitments for a placing of A$8m
from UK and Australia sophisticated and institutional investors at $0.07 and £0.04 equivalent
through the Company’s AIM broker Old Park Lane Capital Plc and Australian brokers and will
potential accept up to A$10m (up to 143m shares).
Funds raised will be used to fund the Company’s Puntland, Texan and Georgian interests and to
investigate further acquisitions opportunities of which Range is in the final stages of securing an
option over another oil production play with significant exploration upside in the Americas and
should be in a position to announce shortly.
For and on behalf of the Board
Tel : +61 (
8 9488 5220
PPR Conduit PR
David Tasker Jonathan Charles
Tel: +61 (
9388 0944 Tel: + 44 (0) 20 7429 6666
Em: firstname.lastname@example.org Em: email@example.com
RFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Broker)
Stuart Laing Michael Parnes
Tel: +61 (
9480 2500 Tel: +44 (0) 207 493 8188