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Range Resources Increases Trinidad Oil Production By 18%

Range Resources (ASX:RRS, AIM:RRL) has increased its Trinidad production by 18% to 630 barrels of oil per day and its total Proved and Probable Reserves by 9.4% to 22.1 million barrels of oil.

The production increase is due to excellent results from the South Quarry QU 452 development well and represents good progress towards meeting its target of doubling production.

Meanwhile, the reserves increase is due to the company's ongoing development drilling program and consequent update to development schemes in Trinidad.

Four of the company's six drilling rigs are now fully operational and the company is finalising the location of the first planned well on the Guayaguayare block with JV Partner Niko Resources.

"The 18% production increase is a great result for the company and shows good progress towards meeting our production targets for the year," chief executive officer Rory Scott Russell.

"The QU 452 well in particular demonstrates the untapped potential of our development assets in Trinidad, flowing exceptionally light oil at 70 bopd and opening up a new area for development drilling.

"We are also pleased to provide the updated reserve figures for our core producing assets in Trinidad.

"The increase in these reserves figures is a result of our ongoing drilling, de-risking and development planning work. The increase in reserves more than replaces production since the last report again highlighting the development potential of the acreage."

Production and Reserves Update

The increase in production to 630bopd from the 533bopd reported on 22 April is due to the QU 452 development well, which is now producing at a stabilised rate of 70 bopd of very light 47 degrees API oil.

QU 452 was drilled to a depth of 1,945 feet and is the first development well in the South Quarry licence since 2007.

Notably, its success confirms the extension of the shallow producing trend and is expected to result in additional development drilling targets.

Range is currently evaluating the possibility of moving rig 8 to drill additional development targets.

It is also expected to further increase its Proved Reserves above the reported increase of over 9% to 22.1MMbbl.

The updated independent reserves report was completed by Forrest A. Garb & Associates.

Proved Reserves were up 8.6% to 19MMbbl.

Rigs

Four of the company's six drilling rigs are fully operational.

Rigs 1 and 5 are engaged in development work in the Morne Diablo licence while Rig 6 is engaged in workover operations.

Given encouraging results from South Quarry QU 452 well, the company is currently evaluating the possibility of moving Rig 8 to South Quarry licence to drill additional development targets and expedite the drilling program.

Rigs 2 & 7 are undergoing maintenance.

Analysis

The production and reserve increase for Range Resources' Trinidad project continues the positive news flow to date.

Further drilling operations underway will likely lead to further production increases, bringing the company closer towards its goal of doubling its oil production.

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