The Manager Company Announcements Australian Securities Exchange Limited Level 6, 20 Bridge Street Sydney NSW 2000
By e-lodgement
MARKET UPDATE
Range Resources Limited ("Range" or the "Company") is aware of negative statements and commentary being circulated in respect of progress with the Shabeel-1 well currently being drilled in Puntland by the Company's Joint Venture Operator, Horn Petroleum Corp. ("Horn"). The Company wishes to confirm that the well has not yet reached depths targeting the primary reservoir and refers investors to the drilling update released to the market on 12 April 2012.
The forward plan on the well is to drill ahead (currently at 2953 metres) to the originally planned depth of 3800 metres to evaluate the primary and secondary reservoir targets (which to date have not been reached) in the Lower Cretaceous and Jurassic intervals equivalent to the main productive section seen in the analogous fields in Yemen. A testing program including the zones of interest seen to date and any deeper potential pay zones identified will be agreed with partners at that time. Upon completion of the well, the Joint Venture plans to move the rig to the Shabeel North location where construction is nearing completion for the second well.
The Company will provide a more detailed update on the progress of drilling in Puntland in conjunction with its Joint Venture partners as the well progresses.
Yours faithfully
Peter Landau Executive Director
RRS Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
