Range Cites 'Best Estimate' of 1.6B Barrels in Kurdistan

Range Energy Resources announced that Citadel Engineering has completed an independent, initial resource assessment of the Khalakan Block, located in the Kurdistan Region of Iraq. Citadel has estimated an unrisked "Best Estimate" of 1.642 billion barrels of petroleum in place as of March 1, 2010.

Range has an indirect 24.95% working interest in the Khalakan Block. Several structures have been outlined using satellite mapping that will be detailed by shooting approximately 250 kilometers of seismic scheduled to start this month. Processing and interpretation of the seismic data and procuring tangibles for the initial well suggests a spud date towards the end of the current year.

The resource report entitled "Petroleum Reserves, Khalakan Field, Kurdistan, Prospective Petroleum Resources" has indicated a mean gross projected oil in place reserve of 1.642 billion barrels. Range's indirect working interest, oil-in-place is estimated at 409.6 million barrels. If a recovery factor of 30% is assumed, Range's indirect working interest recoverable prospective resource would be 122.9 million barrels.

Range believes that proximity of the Khalakan Block to other recent discoveries in Kurdistan at Taq Taq (Addax Petroleum / Sinopec) and Miran (Heritage Oil) make the Khalakan structures low risk prospects with the potential for the discovery of large oil reserves.

Prospective oil resources are those resources 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. The chance of commerciality is the product of these two risk components. There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective oil resources.

Prospective oil resources are undiscovered resources that indicate exploration opportunities and development potential in the event a commercial discovery is made and should not be construed as reserves or contingent resources.


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