just...

just out:
http://www.rangeresources.com.au/fileadmin/user_upload/research_Reports/RRL_27_05_11.pdf


RANGE RESOURCES LTD 15.38p
Production and development assets update 27 May 2011
Range has provided a very positive update regarding its production and development assets in Texas and Trinidad.
Recent fracture stimulation work at the North Chapman Ranch Project in Texas has yielded dramatically increased
production from the Russell Bevly #1 well and further frac work at the East Texas Cotton Valley Prospect (ETCV)
will commence within a fortnight. Range has also finalised the details of an aggressive drilling programme in
Trinidad which is expected to commence within the next 45 days.
? Range is completing work on its fracture stimulation programme on the Russell Bevly #1 well and stabilised flow
rates are approximately 3.5 mmcfpd and 350 bopd from the uppermost zone alone. Given that the budgeted output
for all producing zones is 4 mmcfpd and 350 bopd, the overall rate of co-mingled production from all completed
zones is likely to exceed expectations significantly.
? At the East Clarksville field at ETCV, Range and its partners are awaiting the arrival of frac equipment and crews to
begin operations on the recently completed Ross 3H horizontal well. The well has been cased with a 3,400ft section
and demonstrated good oil shows throughout the horizontal section. Range expects that frac work will commence
within the next two weeks.
? Range is finalising an aggressive work programme for its recently acquired assets in Trinidad. This is expected to
increase production from 650 - 700 bopd to 4,000 bopd from existing P1 and P2 reserves over the next 36 months.
The company will commence drilling within the next 30-45 days with the first phase being nine shallow wells in the
Upper Cruse, Lower Forest and Shallow Forest formations. At depths of 250ft - 2,500ft, these wells are expected to
take only one to two weeks each to complete and initial flow rates are expected to be 40 - 150 bopd.
? Range will also reprocess existing 3D seismic to upgrade the current 10+ targets in the deeper but potentially more
productive Herrera formation. Success in the Herrera is currently excluded from the company?s production targets.
Nevertheless, we anticipate that Range will spud an exploration well in the Herrera in 2011.
Range?s progress in Texas and Trinidad continues to de-risk the business while maintaining exciting exposure to
highly attractive exploration upside in Georgia and Puntland. With Range participating in four high impact
exploration wells over the next six months, we believe that investors should see the recent weakness in the share
price as an opportunity to buy the shares.
A marketing communication from OPLC, broker to Range Resources Ltd
Recommendation BUY
Sector: Oil & Gas
Exchange & Ticker: AIM: RRL
ASX: RRS
Shares in issue: 1,604.9m
Fully diluted shares: 1,911.9m
Market cap: ?246.8m
Target price: 28.1p
ANALYST: Barney Gray
+44(0)20 7518 2607
[email protected]
CHIEF EXECUTIVE & Michael Parnes
CORPORATE BROKING: +44(0)20 7518 2608
[email protected]============lia=m^oh=i^kb=`^mfq^i
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DISCLOSURES AND RISK WARNING
The recommendation system used for this research is as follows. We expect the indicated target price relative to the FT
All Share Index to be achieved with 12 months on the date of this publication. A ?Hold? indicates expected performance
relative to this index of +/-10%, a ?Buy? indicates expected outperformance of >10% and a ?Sell? indicates
underperformance of >10%.
This Marketing Communication is provided for information purposes only. It does not constitute a personal
recommendation and should not be construed as an offer or solicitation for investment. This publication is not intended to
be an offer to buy or sell any securities of any of the companies referred to herein and any opinions expressed are subject
to change without notice. Recommendations may not be suitable for all recipients of this publication and if you have any
doubt you should seek advice from a financial adviser. Except for any liability owed under FSMA 200 or the regulatory
system, Old Park Lane Capital plc (OPL) accepts no liability for any losses which may be incurred by the client acting on
such recommendation
Companies mentioned in this research/document may be corporate finance clients of OPL. The analyst(s) responsible for
this document may receive compensation based either directly or indirectly on profits derived from fund management
activities. OPL its directors and employees may have a position or holding in any of the above investments or in a related
investment, therefore OPL is not holding out this research as being impartial or objective as defined by the FSA Conduct
of Business Rule 7.16.5, as set out in our conflicts of interest policy and procedures
This document has been prepared, approved and issued by OPL on the basis of publicly available information, internally
developed data and other sources believed to be reliable. All reasonable care has been taken to ensure the facts stated
and opinions given are fair and not knowingly misleading in whole or part. Prices and factual details are deemed to be
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information or data. The views expressed are as at the date stated and are subject to change at any time
There is an extra risk of losing money when shares are bought in some smaller companies including aim, sometimes
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these shares. If they have to be sold immediately, you may get back much less than you paid for them. The price may
change quickly and it may go down as well as up. Past performance of investments referred to above is not necessarily a
guide to future performance and the value of the investment may go down as well as up. Some investments are not
readily realisable and investors may have difficulty in selling or realising the investment or obtaining reliable information
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