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Friday 27 July, 2012

Range Resources LTD

Puntland Drilling Update


27 July 2012

The Manager

Company Announcements

Australian Securities Exchange Limited

Level 6, 20 Bridge Street

Sydney NSW 2000

By e-lodgement

DEEPENING OF SHABEEL NORTH WELL

Range Resources Limited ("Range" or the "Company") provides the following
update on the Shabeel North well currently being drilled in Puntland, Somalia
by the Company's Joint Venture Operator, Horn Petroleum Corp. (TSXV: HRN).

Further to the recent announcement on the testing of the upper Jesomma sand
reservoir which yielded fresh water, the well continued drilling through the
entire Jesomma reservoir section and had reached a depth of 2,200 meters. The
section contained several additional sands with oil and gas shows and a full
set of electrical logs was run to determine if these sands contained potential
oil zones which would warrant further testing. The analysis of these logs
indicate that the most prospective looking zone in the well was the upper
Jesomma sand interval that had already been confirmed by testing to contain
fresh water and thus no further testing could be justified.

Based on the positive evidence of oil shows and the presence of good quality
reservoir in the Jesomma, the partnership has decided to deepen the well in
order to evaluate the potential of the Lower Cretaceous and Jurassic sections.
The current revised total depth will be approximately 3,400 meters and is
expected to take an additional 15 to 20 days to reach that depth. The Jurassic
section in the nearby Shabeel well had thin reservoir sands with oil and gas
shows, but this section was determined to be not thick enough to warrant
testing. These sands are expected to thicken basinward towards Shabeel North.
There was also evidence that there may have been faulting in the Shabeel well
which could have cut out a significant portion of the basal reservoir section,
which is not expected in Shabeel North.

Horn Petroleum President and CEO David Grellman stated "While we are obviously
disappointed that the Jesomma sands tested wet, the overall results of the two
wells drilled during this campaign are quite encouraging in the long term
prospects for oil potential of the basin. We have confirmed a working petroleum
system, good quality reservoirs and thick impermeable sealing rocks. The two
Jesomma structures drilled to date appear, subject to final petrophysical
analysis, to have issues with the integrity of the trapping mechanism. We are
still hopeful that the lower zones in the Shabeel North well may have
favourable trapping geometries against the deeper thick carbonate and anhydrite
sections seen in the original Shabeel well."

Yours faithfully


Peter Landau

Executive Director

Contacts

Range Resources Limited

Peter Landau

Tel : +61 (8) 9488 5220

Em: [email protected]

PPR(Australia)Tavistock Communications(London)

David Tasker Ed Portman

Tel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7920 3150Em: [email protected]
Em: [email protected]

RFC AmbrianLimited(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 LimitedGMP Securities Europe LLP (Joint Broker)

Daniel Fox-Davies / Oliver Stansfield Chris Beltgens

Tel: +44 (0) 203 463 5000 Tel: +44 (0) 207 647 2800

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 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
    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) 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 with
    an original target depth of 2,400m with the Joint Venture now deciding to
    deepen the well in order to evaluate the potential of the Lower Cretaceous
    and Jurassic sections. Final results of the well scheduled for end of
    August.
   
  * 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 highly
    prospective PUT 6 and PUT 7 licences in Putamayo 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
    estimate.
   
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.

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
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.



ABN 88 002 522 009
www.rangeresources.com.au


London

Suite 1A, Prince's House, 38 Jermyn Street, London SW1 6DN

t: +44 (0)207 025 7040, f: +44 207 287 8028

Australia

Ground Floor, 1 Havelock Street, West Perth WA 6005, Australia

t: +61 8 9488 5220, f: +61 8 9324 2400

e: [email protected]

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