barrels per day, page-4

Hi Reyni,

As taken from Range Research Report 2006 Independent Expert Report.

It is quoted "oil production and oil price
Based on the production sharing regime for Puntland and Range Resources’ 20% interest post the
Canmex farm out, our modelling of production from a 100 million barrel field at US$60 per barrel derives an
in ground NPV per barrel at a 10% nominal discount rate of US$3.94 to Range Resources. This equates to
US$19.72 per barrel for the full interest. Oil price sensitivity is US$0.71 per barrel in the ground per US$10
per barrel change in oil price assumption, for Range Resources’ 20% share. These results are prior to any
corporate taxation outside Puntland.

Oil Price US$/bbl Ultimate Recoverable Reserves MMBBL
1,000 2,000 3,000 4,000 5,000

40 $2,524 $5,048 $7,572 $10,097 $12,621
50 $3,234 $6,469 $9,703 $12,937 $16,171
60 $3,944 $7,889 $11,833 $15,778 $19,722
70 $4,655 $9,309 $13,964 $18,618 $23,273
80 $5,365 $10,729 $ 16,094 $21,459 $26,823

The above table shows the value in millions of US$ for Range Resources’ share post the Canmex farm out
at a range of oil prices and ultimate recoverable reserves for Puntland.

Based on Range Resources’ issued capital post consolidation at US$60 per barrel and a 10% nominal
discount rate, each Range Resources share has an NPV of $13.22 per billion barrels of ultimate recoverable
reserves. This valuation does not discount for political risk, further dilution of capital to fund exploration and
development, delay in exploration and development, or corporate taxation outside of Puntland.