2 September 2011
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
By e-lodgement
Strategic investment (AUD$2m) in Tangiers Petroleum Limited (ASX:TPT)
Range Resources Limited ("Range" or "the Company", AIM:RRL, ASX:RRS) is pleased
to advise that it has made a strategic investment in Tangiers Petroleum Limited
("Tangiers", ASX:TPT). Tangiers is an ASX listed exploration company which has
a portfolio of two potentially world class oil and gas projects located in
Morocco and Australia.
Tangiers Moroccan assets include the highly prospective offshore Tarfaya block.
Netherland, Sewell & Associates conducted an independent review of the first
four prospects on this block and concluded a best estimate prospective resource
of approximately 870 Million Barrels (652 Million Barrels attributable to
Tangiers), and a high estimate of almost 5 Billion Barrels (almost 3.75 Billion
Barrels attributable to Tangiers).
Tangiers has since mapped numerous other prospects in Tarfaya which will
significantly add to the existing prospective resource estimates. Tangiers
holds 75% equity in Tarfaya and intends to farm down its interests in the near
term. It is anticipated that a 3D campaign and two wells will be drilled in
2012.
In Australia Tangiers holds a 90% interest in the significant Nova and Super
Nova gas prospects located offshore Northern Australia. These structures are
extremely large with a physical closure of approximately 240KM2 each. Initial
volumetrics indicate a P90 (low) estimate of the total undiscovered unrisked
gas-in-place of 70 Tcf (63 Tcf attributable to Tangiers) for the combined
structures. These structures are located near an existing and proposed LNG
terminal in Darwin in what is regarded as a growing global gas and LNG hub.
Tangiers expects to acquire further seismic and drill two wells in Australia in
2012.
Due to strong European investor interest Tangiers is planning to dual list on
the AIM market during 2011. RFC Corporate Finance has recently been appointed
as the company's Nomad and planning is well underway.
Range has subscribed for 5 million shares at AUD $0.40 for a placement of
AUD$2m, representing 5.7% of Tangiers expanded issued share capital.
More details on Tangiers Petroleum can be found at www.tangierspetroleum.com.
Peter Landau, Executive Director of Range commented "Tangiers has an
outstanding portfolio of extremely high impact assets. Any farm out and/or
drilling success will lead to a very material uplift in value. Range's equity
exposure to Tangiers offshore portfolio is a nice add on for the Company."
Yours faithfully
Peter Landau
Executive Director
Ends
Contacts
Range Resources Limited
Peter Landau
Tel : +61 (8) 8 9488 5220
Em: plandau@rangeresources.com.au
Australia London
PPR Tavistock Communications
David Tasker Ed Portman/Paul Youens
Tel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7920 3150
Em: david.tasker@ppr.com.au Em: eportman@tavistock.co.uk
RFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (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 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
3P reserves in place of 6.9 MMbls (on a mean 100% basis) 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 and estimated 2
billion barrels of oil-in-place (on a mean 100% basis) with the first of
two exploration wells having spudded in July in 2011.
* 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
drill two wells in 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 240 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, with 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 5.4 mmbbls of oil.
The reserves estimate for the North Chapman Ranch Project and East Texas Cotton
Valley has been formulated by Lonquist & Co LLC who are Petroleum Consultants
based in the United States with offices in Houston and Austin. Lonquist
provides specific engineering services to the oil and gas exploration and
production industry, and consults on all aspects of petroleum geology and
engineering for both domestic and international projects and companies.
Lonquist & Co LLC have consented in writing to the reference to them in this
announcement and to the estimates of oil, natural gas and natural gas liquids
provided. These estimates were formulated 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.
The reserves estimates for the 3 Trinidad blocks 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.
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.
The estimated Prospective Resources and Gas-In-Place estimates for Tangiers
prospects are as reported in various announcements to the ASX by Tangiers,
which are reported in accordance with the SPE guidelines and signed off by
Brent Villemarette, an executive director of Tangiers.
London
5th Floor, 23 King Street, St. James's House, London SW1 6QY
t: +44 207 389 0588, f: +44 207 930 2501
Australia
Ground Floor, 1 Havelock Street, West Perth WA 6005, Australia
t: +61 8 9488 5220, f: +61 8 9324 2400
e: admin@rangeresources.com.au
The content and accuracy of news releases published on this site and/or
distributed by PR Newswire or its partners are the sole responsibility of the
originating company or organisation. Whilst every effort is made to ensure the
accuracy of our services, such releases are not actively monitored or reviewed
by PR Newswire or its partners and under no circumstances shall PR Newswire or
its partners be liable for any loss or damage resulting from the use of such
information. All information should be checked prior to publication.
Share this article