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For much of 2010 oil and gas analysts were writing that it seemed like a very good idea for ASX and London AIM listed Range Resources to diversify into low risk assets. It was essentially a frontier exploration play having first acquired acreage in Puntland (an autonomous state within Somalia) in 2005. Yes the properties are, in theory, highly prospective but it also ticked all the boxes in terms of high risk projects.

On top of the inhospitable terrain and the tyranny of distance to infrastructure and markets, there was scant previous drilling to know how much oil and gas could be found, although the guesstimates put the amounts in billion of barrels, possibly. There has been political instability in Puntland and also feuding warlords, and banditry in Somalia proper. To add to the excitement there is a pronounced piracy problem in the seas around Somalia. Moreover, there was uncertainty over whether licence extensions would be agreed.

Accordingly, at a very low price, Range acquired last year a 25 per cent interest in the North Chapman Ranch in Texas and later bought into the East Valley Prospect, also in Texas. This gave Range production of a few hundred barrels of oil equivalent a day with the prospect of more to come.

Later, earlier this year, in fact, Range finalised the purchase of three producing properties in Trinidad. The company had achieved a more balanced portfolio, with the high risk exploration underpinned by production and cash flow. But Range also acquired assets in Georgia. It bought a 50 per cent interest in Blocks VIa and VIb which cover about 7,000 sq km where independent consultant, RPS Energy has identified 68 prospects. Of the 68 prospects six have been prioritised as drill ready.

RangeÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s share price began to stir in February this year then started to motor from 8 pence in that month to over 30 pence in April as it looked as if wells would be drilled in Georgia sooner than later. The shares have fallen back since because lots of new shares have been issued as multi-millions of pounds have been raised in funding. But they could rebound because, although the amount of oil-place is Georgia is modest compared to what there could be in Puntland, the imminence of drilling in Georgia is seen to have de-risked Puntland also.

There has also been some other good news on this front. Range has interests in two PSAs in Puntland one in the Dharoor Valley and the other in the Nugaal Valley. These PSAs have been amended. The first Exploration Agreement has been extended for a further 12 months from January 2011 to January 17 2012. Consequently, Range and its partners must spud a minimum of one exploration well by July 27 2011 in the Dharoor Valley. A second well is also required to be spudded in the Nugaal Valley by September.



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CompanyRange Resources LTD http://www.londonstockexchange.com/media/img/void.gifTIDMRRLHeadlinePuntland OffshoreReleased09:29 20-Mar-2012Number20921-BEFF

20 March 2012The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000By e-lodgementPUNTLAND OFFSHORERange Resources Limited ("Range" or "the Company") is pleased to announce thatit has entered into an Agreement with the Puntland Government with respect toobtaining a 100% working interest in the highly prospective Nugaal BasinOffshore Block (see below). The Block is an extension of the onshore NugaalRegion which has the potential for deltaic deposits from the Nugaal Valleydrainage system and comprises over 10,000km.The Company will commit to a 2D seismic program within the first three years,with further 3D seismic and an exploration well to follow in the second threeyear period. The Agreement is subject to a formal PSA being entered into andall necessary regulatory approvals. Commercial terms will be similar to thecurrent on-shore PSAs.As part of the entering into the Nugaal Offshore PSA, Range has committedUS$5m, for the tarmac sealing of an Airport Runway in Puntland at theGovernment's direction.It is Ranges intention to offer a participation interest to its joint venturepartner, Red Emperor Resources NL (ASX:RMP) on terms to be agreed.CURRENT PUNTLAND WELLThe Shabeel-1 well on the Dharoor Block in Puntland, Somalia is currently at adepth of 2,384m and drilling ahead. It is expected that casing will be run atapproximately 2400-2700m as dictated by the next electrical logging run. Targetdepth remains at approximately 3800m.COLUMBIA OPPORTUNITYThe Company is also pleased to announce that it is has secured a 65% farm-inopportunity (350m of 3D seismic and 2 new wells) on two highly prospectivelicenses in the on shore Putamayo basin in Southern Columbia. The finalisationof the farm-in agreement is subject to regulatory approvals with full detailsto be provided upon regulatory sign offs being obtained.Following approaches from various parties in relation to its Texas projectinterests, the Company is considering the potential sale of these interestsfollowing the P1 and P2 reserve upgrade expected to be completed in April 2012.In the event that such a sale is undertaken, the Company will consider severalcapital management alternatives for the sale proceeds, including a return ofcapital and an on-market share buyback.STRATEGIC PLACEMENTThe Company is also pleased to announce a strategic institutional placement of150m shares at ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£0.125 each to raise ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£18.75m. Importantly 100m of the shareshave been placed to a major US and European fund management group, withconsiderable expertise in the oil and gas sector. Admission of the shares onAIM is expected to be Tuesday, 27 March 2012 with Range's shares on issue thenbeing 2,271,766,648.Range Managing Director Peter Landau commented; "Today's announcement issignificant in that we have demonstrated the next development path forward forRange. A successful first well in Puntland will trigger increased interest inthe whole Puntland region and Range believes it has secured the mostprospective offshore block following previous work undertaken by Range in 2009and 2010 which included a review of historical seismic and well data."The proposed Columbian farm-in will see Range move into a highly prospective,producing precinct in Southern Columbia and provide a very unique explorationand production proposition when combined with our major Trinidad operations. .'Yours faithfullyPeter LandauExecutive DirectorContactsRange Resources LimitedPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Tavistock CommunicationsDavid Tasker Ed Portman/Paul YouensTel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7920 3150Em: david.tasker@ppr.com.au Em: eportman@tavistock.co.ukRFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Joint Broker)Stuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188 Panmure Gordon (Joint Broker) Katherine Roe / Brett Jacobs Tel: +44 (0) 207 459 3600

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" ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£0.125 placement" Now it's ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£0.486 . Don't feel so bad now. I'm around breakeven. Should've sold @ 37 or so. Good lesson in not falling in love with a stock. Around one fifth now. Although I sold SIR @ 60c thinking it had had a decent run!!!!

IHNI about RRS now, lost interest. That can be a mistake ala SIR, as they might just hit paydirt in one of their diversified fields and I won't be paying attention. Keep an eye on it for me.


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It has really fallen from grace since mentioned last. But the announcement of new management seems to caused some support.

Very speccie, but the recent volume looks attractive enough for me to risk a few quid.



In at 2.4c; will add if 2.5 breaks. Could turn into a multi-bagger - on purely Technical grounds.



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It closed the gap to 2.1c this morning. And then came this announcement:

Successful Bid for St Mary's Block in Trinidad - http://www.asx.com.au/asx/statistics/displ...;idsId=01488792



Some serious volume, again! but still 2M on offer at 2.4c. I'll hold in anticipation of the next drill results.

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