Range Resources announced the following updates with respect to the Company's operations, as well as details of a strategic placement.
Range's operations in Trinidad continue to meet expectations. The Company is buoyed by the early success of the first 3 wells and, with three (3) rigs now operating and continues to target an increase in production to between 1400 - 1800 bopd by the end of year from this initial program.
A more detailed update is expected to be provided during the next week. An updated reserve report is also scheduled to be released in the coming weeks.
Range announced that the second well location in the Company's anticipated two well program on the North Chapman Ranch project has been selected by the Operator with spudding scheduled for early October. The Smith #2 well will be an offset to the existing Smith #1 well and has been categorized as a proved undeveloped location. The Smith #2 is classed as low risk and is anticipated to provide immediate cashflow once successfully completed.
The second well is the Albrecht appraisal well which will commence immediately after completion of the Smith #2 (December 2011). The Albrecht Well is anticipated to move most of the P3 reserves to P1 and P2 categories and test two new objectives over and above the existing producing zones. The joint venture has successfully contracted the drilling rig to not only complete these two proposed wells but also has the option to use the rig to continue the drilling of additional wells for as long as the joint venture decides.
In addition, the operator is back on site at the East Cotton Valley Ross 3H well to test new intervals.
The Company has completed a US $15 million strategic placement to Socius CG II, an established and highly successful United States based investment group and a wholly-owned subsidiary of Socius Capital Group ("Socius"). The placement consisted of 83,563,829 Shares at A$0.1815 together with 41,781,915 unlisted 5 year options with an exercise price of A$0.1898. The share placement price represented a 10% premium to the Company's current share price. Following the placement Socius will hold approximately 4.6% of the Company's issued share capital (on an undiluted basis). With Range soon to complete the reprocessing of 3D seismic over its deeper Herrera formations in Trinidad, the placement proceeds will allow the Company to fast track plans to commence a proposed 4 well drilling program to test identified Herrera prospects with undiscovered oil-in-place of circa 50 MMbbl using the existing Rig #8 owned by the Company.
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