your initial deposit *subject to change and depends on individual circumstances.
Range Resources (ASX: RRS, AIM: RRL) is an oil and gas exploration, development and production company, which is dual-listed on the ASX (RRS) and AIM (RRL).Its principal activities are directed towards finding and delineating hydrocarbons with interests in Trinidad, Texas- USA, Colombia, Puntland- Somalia, and the Republic of Georgia.
RNS Release - Colombia Farm-In Finalised & New Joint Broker
12 June 2012
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
COLOMBIA FARM-IN FINALISED AND NEW JOINT BROKER APPOINTED
* Range to earn 65% (option to move to 75%) interest in the highly
prospective blocks PUT-6 and PUT-7 in the Putumayo Basin in return for
providing funding for the PSA work commitments (3D seismic and 2 wells)
* Additional opportunity to appraise and potentially re-enter a shut in well
on Block PUT-7 which has historically reported reserves of 7.9 million
barrels of oil
* 21 mapped leads across the 2 blocks to be the focus of 3D seismic programme
* The Putumayo Basin is an hydrocarbon producing region in Colombia with
* Appointment of GMP Securities Europe LLP as Joint Broker
Range Resources Limited ("Range" or "the Company") is pleased to announce
further details on the Company's future economic participation into two highly
prospective blocks in Colombia's Putumayo Basin in southern Colombia, following
the receipt of relevant regulatory approvals.
Economic Participation Agreement
Range has entered into an economic participation agreement with Petro Caribbean
Resources Limited, a private oil and gas company focussed on the development of
petroleum and natural gas reserves in Colombia ("PCR" the official operator of
the blocks) that will see the Company earn a 65% economic interest (option to
move to 75%) in Blocks PUT-6 and PUT-7 in return for funding (on a cost
recoverable basis) the commitments under the Production Sharing Agreement ("PSA
") with the National Hydrocarbons Agency of Colombia ("ANH") which include a
350km2 3D seismic programme across the two blocks followed by one exploration
well in each block.
In addition to the completion of the PSA work commitments of the two blocks as
mentioned above, the joint venture partners will also (subject to ANH
regulatory approval) undertake an extensive review (and possible re-entry) of a
Putumayo well that was drilled and subsequently suspended in the mid 1980's on
Block PUT-7. The well had a historically reported estimate of 7.9 million
barrels of recoverable oil however, in light of the low oil price
(approximately $12-15 per barrel) and infrastructure constraints at the time,
the well was suspended and has not been re-assessed since. The reservoir modelling
and underlying data for this estimate have not yet been reviewed in sufficient
detail by Range or its consultants to provide a reserve estimate compliant with
the SPE reporting guidelines.
Assuming the results of the re-evaluation area are favourable, the joint
venture partner's plans to re-enter the well late 2012.
Putumayo Basin Blocks 6 and 7
Blocks PUT-6 and PUT-7 are located in the Putumayo Basin in southern Colombia
(see map 1), next to the border with Ecuador to the South. This basin is an
extension of the prolific hydrocarbon bearing Oriente Basin of Ecuador. There
are numerous producing oil-fields surrounding the two blocks and many other
discoveries of good quality light oil with approximately 365 MMboe having been
discovered in the basin to date. Both blocks are on trend with known
discoveries and close to existing pipeline infrastructure. Typical well
productivity in the basin ranges from 1,500 to 4,000 bopd with good pressure
maintenance by water drive. Production from the Putumayo basin during 2011
averaged between 35,000 - 40,000 bopd. 1
Most of the existing leads (6 mapped in PUT-6, 15 mapped in PUT-7) in the two
blocks are four-way structural closures, formed by reverse faults providing
good closure and minimal risk of breaching/fault leakage. The leads have been
interpreted on vintage 2D seismic data. With the new planned 3D seismic data
(commencing Q3 2012 subject to ANH approval), the imaging of the targets will
improve and the structures will become better defined allowing the leads to be
matured into firm prospects and prioritised for drill testing.
1 Source - Ministerio de Minas y Energia. Current operators include Ecopetrol,
Pacific Rubiales, Gran Tierra and Amerisur Resources.
* The oil is sourced from the thick regional Jurassic La Paz/Luna Formation
and the Cretaceous Caballos Formation; current interpretations suggest that
oil migrated early on from West to East into paleo-structures that form the
main targets in these blocks.
* The main reservoirs in the Putumayo Basin are the good-quality sandstones
found in the Lower Cretaceous Caballos Formation, with an average thickness
of 300ft. Porosities range from 10% to 16%, with good permeability.
* Oil recovery rates for the reservoirs vary, but range from 16% to 35%.
There is significant aquifer support that typically sustains production and
reservoir pressure over the long term.
* Secondary targets exist above the Caballos in the U and T sandstones
(Middle to Upper Cretaceous Villeta Formation). Recent results by other
operators in adjacent blocks indicate significant upside potential in the
shallower Villeta N Sand.
* An excellent seal is provided by the Cretaceous plastic shales of the
Villeta Formation. Rumiyaco and Orteguaza shales are also potential seals.
* The main targets are structural traps associated with thrusts and
sub-thrusts in the western side of the basin, and up-thrusts forming
reverse-faulted anticlines in the foreland basin.
* Oil fields in the basin are related to structural traps, mainly
contractional fault related folds, and reverse faulting.
* Leads show four-way closures at multiple intervals, from the Lower
Cretaceous Caballos to the Villeta N Sand
Development of the blocks will be funded through existing funds and cashflow.
Peter Landau commented, "the Colombian farm-in represents a great opportunity
for Range to build its exciting oil and gas portfolio with Trinidad as the
underpin. The Putumayo Basin is a proven producing region with well-established
Companies operating in the region and our 2 blocks are some of the largest
areas on trend which haven't had any genuine exploration and development work
undertaken in recent decades. Leveraging off our significant Trinidad
operations financially, technically and logistically, Colombia further
strengthens our current and future production growth profile as we head towards
10,000 bopd by 2014."
Appointment of Joint Broker
Range is also pleased to announce the appointment of GMP Securities Europe LLP
as Joint Broker to the Company with immediate effect.
Range Resources Limited
Tel : +61 (8) 9488 5220
PPR (Australia) Tavistock Communications (London)
David Tasker Ed Portman/Paul Youens
Tel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7920 3150
Em: email@example.com Em: firstname.lastname@example.org
RFC Group Limited (Nominated Advisor) Old Park Lane Capital (Joint Broker)
Stuart Laing Michael Parnes
Tel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188
Fox-Davies Capital Limited GMP Securities Europe LLP (Joint Broker)
Daniel Fox-Davies / Oliver Stansfield Nick Morgan / Chris Beltgens
Tel: +44 (0)203 463 5000 Tel: +44 (0) 207 647 2800
Range Resources Limited is a dual listed (ASX:
* 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 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. 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 licences
encompassing the highly prospective Dharoor and Nugaal valleys. The operator
and 60% interest holder, Horn Petroleum Corp. (TSXV: HRN) has completed the
first exploration well (Shabeel-1) to a final depth of 3,470m having encountered
a 12-20m zone of significant hydrocarbon pay in the Upper Cretaceous Jesomma
Formation. The second well spud in early June 2012 and targeting best estimate
Prospective Resources (100% basis) across the two wells of 170-300 mmbbls.
* 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 highliy
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
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 ResourcesInternational, 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
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 assuming their discovery and development
and may be sub-classified based on project maturity.
Contingent Resources are 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.
ABN 88 002 522 009
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