Source - RNS
RNS Number : 1408L
Range Resources Limited
29 September 2016

Reserves and Resources Update

Range is pleased to announce that independent petroleum consultants, Rockflow Resources Limited ("Rockflow"), have completed an evaluation and independent audit of the Company's oil and gas reserves and resources in Trinidad as at 30 June 2016 (FY 2016), with the findings summarised in the tables below.

Commenting on today's announcement, Yan Liu, Chief Executive Officer, said:

"Our assets in Trinidad provide an exciting mix of exploration and development activities. We are encouraged with the increase in our independently audited 2P reserves by 11%, which validates the quality and potential of our Trinidad assets.  We remain focused on increasing our production and monetising these reserves. Our ultimate goal in Trinidad is to ensure that the business is self-sustaining over the long-term, and generates returns for shareholders."


Reserves attributable to Trinidad assets (net to Range):





Proved reserves (1P)




Proved plus probable reserves (2P)




Proved plus probable plus possible (3P)





Resources attributable to Trinidad assets (net to Range):



Contingent resources (2C (best estimate))


Prospective resources (unrisked best estimate)



Reserves and resources movement:


30 June 2015*

Revisions and production (FY 2016)

30 June 2016


1P reserves





2P reserves





3P reserves





2C resources (best estimate)





Prospective resources (unrisked best estimate)





*The reserve and resource figures as at 30 June 2015 are based on the independent reserves report which was completed by Forrest A. Garb & Associates, Inc. effective January 1, 2014.

The reserve figures (1P, 2P and 3P) include reserves associated with the Company's Morne Diablo, South Quarry and Beach Marcelle licences in Trinidad. The change in reserves from the previously reported figures is due to the adoption of a different calculation approach, using a wider range of in-place volumes, and recovery estimates from waterflooding for the Beach Marcelle licence.

The Central block and the deeper sands of the North East block of the Beach Marcelle waterflood project were considered uneconomic at current oil prices and will require further studies. These have been classified as contingent resources.

In previous years Range reported prospective resources for the deeper horizons on the Morne Diablo, South Quarry and Beach Marcelle licences. Range did not include these horizons with this year's audit. Range intends to undertake additional analysis and review of these prospects prior to reporting updated resources for these blocks. The reported prospective resources relate solely to the Guayaguayare licence.

The St Mary's exploration licence was not included in any of the estimates, as further technical studies had not been finalised at the time of the audit. The Company has been working with the government of Trinidad and Tobago to obtain high resolution gravity surveys and additional seismic data for the block. Subsequent to the finalisation of the audit, this technical data was received. The Company now intends to conduct further studies utilising the data provided.

The evaluation was performed in accordance with the definitions and guidelines of the SPE Petroleum Resources Management System (SPE-PRMS).

The reserve and resource estimates were calculated using the probabilistic method.


Competent Person Statement

In accordance with AIM Rules, Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and approved by Dr Douglas Field. Dr Field is a petroleum and reservoir engineer who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves, and holds a PhD in Organic Chemistry. Dr Field is a member of the SPE (Society of Petroleum Engineers) and the PESGB (Petroleum Exploration Society of Great Britain). Dr Field holds a role of an Engineering Consultant with the Company.

Glossary - SPE Definitions

MMBOE stands for Million Barrels of Oil Equivalent.

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. 1P refers to Proved Reserves, 2P refers to Proved plus Probable Reserves, 3P refers to Proved, plus Probable, plus Possible Reserves.

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by their economic status.

Prospective resources are defined as 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. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.


The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.




Contact Details




Range Resources Limited

Evgenia Bezruchko (Group Corporate Development Manager)

e. [email protected]

t.   +44 (0)20 7520 9486

Cantor Fitzgerald Europe (Nominated Advisor and Broker)

David Porter / Sarah Wharry (Corporate Finance)

David Banks (Corporate Broking)

t.   +44 (0)20 7894 7000


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