fox davis broker note

October 10, 2011 - Range Resources Ltd Fox Davies
http://bit.ly/r7FbuX

BUY
Range Resources Ltd
(RRL LN)
Flash Note Price target: £00.24 00.24 .24.24
Oil & Gas 10 October 2011
Operations Update
BUY Recommendation maintained
Event
Range Resources Ltd (“Range” or “Company”) provided an operational
update on its activities in Trinidad, Texas and Geo ts activities in Trinidad, Texas and Georgia. rgia.
Trinidad
Following on from the successful completion of QUN 115 and MD 247, the
Company recently spudded a step out well - QUN 116 with Rig 1 and has
successfully set surface casing to 100 ft. Drilling continues at approximately
725ft with a target depth of 1,000ft, targeting the Lower Forest oil sands.
Rig 2 recently passed final Ministry inspection on location and has spudded
QUN 117, the fourth well in the Company's planned initial 21 well program.
Another step out well, QUN 117 has a projected total depth of 2,000ft and is
targeting the Lower Forest oil sands as well as the prolific underlying Upper
Cruse reservoirs.
Rig 8 is currently being serviced and is set to join the drilling programme shortly
following recertification. Once placed back into service, Rig 8 will be used to
target deeper reservoirs, including the Middle and Lower Cruse oil sands with
target depths averaging 6,500 ft. The Middle and Lower Cruse reservoirs have
historically been the most prolific within the existing fields, but are under
developed in certain areas. The Range drilling program is expected to add
reserves and production from these sands within the existing fields, while
extending the producing trend into new areas. Rig 8 is the third and last drilling
rig to be introduced into the 2011 drilling program. The Company will introduce
other drilling and completion rigs into the fleet to accelerate drilling and
production increases early 2012. The ability to develop reserves from deeper
objectives will become an increasing focus as the Company tests other known
producing horizons such as the Herrera formation.
The Company is buoyed by this early success and remains confident of
increasing production to between 1,400 - 1,800 bopd from this initial
programme in Trinidad.