Range Resources Ltd

Description
Full company report

Range Resources Limited (“Range” or “the Company”) is both an ASX-listed (ASX: RRS) and AIM-listed (AIM: RRL) exploration and production Company, with its principal activities directed towards finding and delineating hydrocarbons in Puntland, Somalia; the Republic of Georgia, onshore Texas, USA and Trinidad.

Range’s main focus is in Puntland, Somalia where it holds a 20% working interest in two Production Sharing Agreements (PSAs) for the Nugaal and Dharoor Blocks. These concessions encompass two highly prospective hydrocarbon basins covering an area of 81,000sq.km or more than 20 million acres.

In July 2009, the Company entered into a Heads of Agreement with the private UK company Strait Oil and Gas Ltd. to acquire a 50% interest in two oil and gas blocks in the Republic of Georgia.In September 2009, the Company acquired a 25% interest in the Smith #1 well and a 20% interest in subsequent wells in the North Chapman Ranch Project in Nueces County, Texas. The project area comprises 1,680 acres in one of the most prolific oil and gas producing trends in Texas. Following the commercial discovery on the Smith #1 well in December 2009, a multi well program was initiated that is seeing numerous wells planning to be drilled on the project. Independently assessed gross recoverable reserves in place of 240 Bcf Natural Gas and 36 Mmbls of Oil / NGL’s.

Range also holds a 21.75% interest in the East Texas Cotton Valley Prospect in Red River County, Texas. The prospect's project area encompasses approximately 1,570 acres encompassing a recent oil discovery. Independently assessed gross recoverable reserves in place of 5.4 mmbbls of oil.

On 12 July 2010, Range signed a HoA to acquire a 10% ownership interest in holding companies whose wholly owned subsidiaries hold three production licences in producing onshore oilfields in Trinidad and significant local onshore drilling operations.

Current production is 700 bopd (100% basis) with a planned work program expected to lift production to more than 4,000 bopd within 36 months on known reserves.

The acquisition includes a 10% interest in the parent of a wholly owned drilling company, which owns five onshore drill rigs, three production rigs, one swab rig and a full workshop and pipe yard, storage tanks and facilities.

With the planned onshore exploration drilling program in Puntland and Georgia coupled with the exploration and development programs in Texas and Trinidad, Range is well on its way to establish itself as a diversified international oil and gas exploration, development and production company with significant upside potential.

Email admin@rangeresources.com.au