Range Resources provides update on operations in Puntland and Georgia

Range Resources has provided an update on operations in Puntland and Georgia 

Puntland Update

Range Resources has announced an update on the drilling of the Shabeel-1 exploration well in the Dharoor Valley Block in onshore Puntland.

The Shabeel-1 exploration well spudded on January 17, 2012 and is currently at a depth of 1,230 meters. Casing has been set in the well to a depth of 1,139m and drilling of the 12 ¼ inch section continues as planned. Drilling of the Shabeel-1 well is expected to be completed before the end of March and testing equipment is currently being mobilized to the site. Assuming successful drilling results, it is anticipated that testing results will be available early in the second quarter of 2012. Upon completion of drilling the Shabeel-1 well, the rig will move to the Shabeel North-1 well, where 30 inch conductor pipe is in place and a 50 meter pilot hole has already been drilled.

These two wells represent the first exploration wells to be drilled in the country in over 20 years and will satisfy the first exploration period drilling commitments as required under the Production Sharing Contracts for both the Dharoor and Nugaal Blocks. In order to provide sufficient time to evaluate drilling results, the Puntland Government has granted an extension of the first
exploration period expiry date 17 October 2012.

The Puntland Government and Dharoor Valley communities are fully supportive of the drilling project and have ensured the Company that they will do all necessary to allow the project to move forward safely and expeditiously.

Georgia Update

Range would also like to announce that, due to the severe weather conditions that have been experienced across Europe and Eastern Europe, the Joint Venture has taken the decision to delay mobilisation of the drilling rig and ancillary equipment to the Namakhvani well in Georgia to allow for more robust site construction.

The poor weather experienced since site preparations first began has impeded adequate ground and road preparations to permit the safe movement of heavy equipment to the site. It was therefore decided to delay mobilisation until conditions at the site are satisfactory. Whilst mobilisation has been delayed, site preparation has continued, albeit, constrained in part by the weather
conditions. The Company anticipates that spudding will now take place in early / mid April 2012.

The Company would also like to announce that preparations have begun on the 2D seismic program on Block V1b with the engagement of the Geological Institute of Israel (GII), who performed the initial 410 km 2D seismic program in 2009. A 265 km 2D seismic program will be undertaken on Block VIb that will endeavour to provide northern closure on the initial structures previously identified, as well as looking at identifying possible unconventional targets. The program will also include a seismic cross section over the recently drilled Mukhiani well to assist with the potential side track option as identified through the earlier Vertical Seismic Profiling.

Recently appointed NTD Energy will be taking an active role in supervising the seismic program all the way from acquisition to processing and interpretation.

Texas Update

Range would also like to announce that it has drilled two additional appraisal wells on North Chapman Ranch, the Smith #2 and the Albrecht wells. Both wells have been successful drilled and logged with the Smith #2 having been completed and fracture stimulated with testing imminent. The Albrecht well has been logged with early indications suggesting a 100+ ft gross pay zone, with casing now being prepared to be run prior to fracture stimulation and completion. Together, these two wells are expected to move significant reserves into the proved category, paving the way for future development.

Issue of Shares

Range Resources is pleased to announce the issue of the following securities:

• 27,272,727 Ordinary Fully Paid Shares to be issued upon drawdown of £3m on the Company's equity line of credit facility with First Columbus LLC
• 1,998,889 Ordinary Fully Paid Shares to be issued in lieu of corporate advisory, consultancy and facilitation fees

Application will be made for the 29,271,616 new shares to be admitted to trading on the ASX and AIM. Trading in the new shares is expected to commence on or around 28 February 2012.

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Source: Range Resources