RANGE RESOURCES EXTREMELY BUOYED BY TRINIDAD&TEXAS VALUATION

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Range Resources' Landau says firm buoyed by Trinidad and Texas valuation
12:31 pm by Giles Gwinnett

Oil explorer Range Resources' (LON:RRL, ASX:RRS) executive director Peter Landau today said firm "extremely buoyed" by an independent valuation of its Trinidad and Texas assets.

The firm released today a reserves, resources and valuation report for those assets - stating that total gross prospective resources stood at 27 million barrels of oil - of which net attributable to Range was 20 million barrels.

The reserves report by Forrest Garb estimates total proved, probable and possible reserves across Trinidad and Texas of 44.1 million barrels with 26.4 million barrels net to the firm.

The consultants also estimate 19 million barrels of natural gas liquids with 3.7 million barrels net to the firm and 246 billion cubic feet of natural gas (with 43 billion cubic feet net to Range).

Landau also pointed out that "significant upside" for the assets was still to be established through a number of activities - not least the development well programme on the North Chapman Ranch in Texas.

There is also the ongoing testing of the Ross 3H horizontal well in its East Texas Cotton Valley play and the results from the current 21 well drilling program on Morne Diablo.

Also pending, said Landau, was the inclusion of the highly prospective Herrera potential following completion of the 3D seismic reprocessing due shortly and subsequent drilling during next year.

Range also highlighted that today's report does not even include the huge potential of its exploration assets in Georgia and Puntland particularly as the spudding of two wells in both these regions is due next month.

"Range management looks forward to realising this potential value for shareholders and adding further value through ongoing exploration, development, production and project acquisition activities," it said in today's statement.

Today's valuation includes the 490 per cent increase in proved resources in Trinidad (to 15.4 million barrels of oil) following work at Range's Beach Marcelle block.

Range holds a 100 per cent interest in the three onshore Trinidad licences - Morne Diablo, South Quarry and Beach Marcelle.

It also has a 21.75 per cent interest in East Texas Cotton Valley Prospect in Red River County, Texas and a 25 per cent interest in the Smith No. 1 well and 20 per cent interest in subsequent wells in the North Chapman Ranch project in Texas.

Earlier today, the firm revealed it has spudded the Albrecht No.1 appraisal well on the North Chapman Ranch project.

Now at a depth of 2,030ft, the well is programmed to reach a total depth of approximately 14,500ft and follow the recently drilled Smith No. 2 well, where a production liner has been run and cemented.

Range added that if successful, the Albrecht No. 1 appraisal well will prove up reserves in the South East portion of the North Chapman Ranch licence area and support a re-classification of current Possible (P3) reserves into the Probable (P2) and Proved (P1) categories.

Range Resources rose 2.28 per cent to trade at 8.08 pence.

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