Range resource update

[sheekh-Farax-zero]

EXPLORATION UPDATE ‐ Dharoor
The Company’s joint venture partner, Africa Oil, completed its 2D seismic programme in Puntland’s Dharoor Valley in December 2008. A total of 782 km of good quality vibroseis data, comprising a grid of 15 lines were recorded.
Africa Oil is currently processing the new survey and combining the results with 555 km of older seismic data previously acquired. Mapping of this combined survey has commenced and drilling locations are scheduled to be selected by Africa Oil during the second quarter of 2009. A more definite timetable for rig mobilisation and drilling will be announced as drilling locations are finalised with actual drilling anticipated for the fourth quarter of 2009.
Range notes that the current world financial crisis combined with recent low oil prices has meant that rig availability has increased significantly while budgeted drilling costs have decreased significantly, thereby providing Africa Oil greater flexibility in finalising its programme.
The Company has commenced contributions to the expenditure programme on the Dharoor Valley (subject to finalization of cost allocation under the joint operating agreement with Africa Oil). It should be noted that Africa Oil’s expenditure to date includes a rig mobilization fee and purchase and delivery of inventory (mainly well heads and casing) sufficient for 4 wells.

Offshore Programme

The Company continues to develop its plan for the exploration of Puntland's offshore areas. As referred to above, existing 2D seismic data from several older surveys is being reviewed and interpreted along with earlier drilling results in order to focus future exploration efforts on areas that are deemed to have the highest potential for commercial reserves. The Company continued its discussions with potential joint venture partners, seismic contractors and security firms operating in the region in order to determine the feasibility, cost, and timing of new 2D seismic acquisition in Puntland waters.

Political Situation

During the quarter Puntland held a democratic regional election. The successful election of new President Dr Abdirahman Mohamed “Farole” was announced by the Company and discussed in its Quarterly and Half Yearly Reports in 2009. The Company is continuing to progress with establishing a constructive relationship with the new Government and establish a mutually beneficial program of developing Puntland’s mineral and offshore hydrocarbon assets.