Presentation on the Proposed Merger with IOP
3 May 2013
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
By e-lodgement
PROPOSED MERGER PRESENTATION
Range Resources Limited ("Range" or "the Company") is pleased to release a
presentation on the proposed merger with International Petroleum Limited. The
presentation outlines rationale behind the proposition with a particular
emphasis on International Petroleum and its assets.
The presentation is available on the Company’s website at www.rangeresources.com.au.
Yours faithfully
Peter Landau
Executive Director
Contacts
Range Resources Limited
Peter Landau
Tel : +61 (8) 9488 5220
Em: plandau@rangeresources.com.au
PPR (Australia)
David Tasker
Tel: +61 (8) 9388 0944
Em: david.tasker@ppr.com.au
RFC Ambrian 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 (Joint Broker) GMP Securities Europe LLP (Joint Broker)
Daniel Fox-Davies / Richard Hail James Pope
Tel: +44 (0) 203 463 5000 Tel: +44 (0) 207 647 2800
Dahlman Rose & Company (Principal American Liaison)
OTCQX International Market (U.S.)
Christopher Weekes / Stephen Nash
Tel: +1 (212)-372-5766
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 MMBO with 25.2 MMBO of proved,
probable and possible (3P) reserves and an additional 81 MMBO of unrisked
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 highly prospective
licences in the Putumayo Basin in Southern Colombia. The Company will undertake
a 3D seismic program in the near term as part of its exploration commitments on
the Company's Colombian interests.
Range has taken a strategic stake (19.9%) in Citation Resources Limited (ASX:
CTR) which holds a 70% interest in Latin American Resources (LAR). LAR holds an
80-100% interest in two oil and gas development and exploration blocks in
Guatemala with Canadian NI 51-101 certified proved plus probable (2P) reserves
of 2.3 MMBBL (100% basis). Range also holds a 10% interest in LAR.
Table of Reserves and Resources
Detailed below are the estimated reserves for the Range project portfolio.
All figures in Gross Oil Range's Net Attributable
MMboe Reserves
Project 1P 2P 3P Interest 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
Guatemala ** 2.3** ** 21-24% ** 0.48-0.55 ** Latin American
** Resources
Total Oil & 34.9 47.0 63.8 19.9 21.3 28.9
Liquids
Gas Reserves
Texas- NCR * 106.0 162.7 228 20-25% 11.7 18.1 25.4 Western Gulf
Total Gas 106.0 162.7 228 11.7 18.1 25.4
Reserves
* 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.
**The reserves estimate for the Guatemalan Blocks in which LAR (and CTR) have
an interest in is as reported by CTR. CTR has not reported 1P and 3P estimates,
but Range is seeking such information from CTR for future reporting purposes.
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
Project Low Best/ High Interest 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 estimate for the Guatemalan Blocks in which LAR (and CTR) have an
interest in is as reported by CTR. CTR has not reported 1P and 3P estimates,
but Range is seeking such information from CTR for future reporting purposes.
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.
The TSX certified 51-101 certified reserves with respect to the Guatemalan
project are as reported by ASX listed Company Citation Resources (ASX: CTR).
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 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
regulations.
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
Reserves.
1P refers to Proved Reserves, 2P refers to Proved plus Probable Reserves and 3P
refers to Proved plus Probable plus Possible Reserves.
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.
Undiscovered Oil-In-Place is 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.