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Range Energy Resources Inc (2)
Symbol C : RGO
Shares Issued 161,877,840
Close 2013-09-18 C$ 0.04
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Range Energy expects drilling of Shewashan-1, Khalakan

2013-09-20 16:44 ET - News Release

Mr. Toufic Chahine repotrs

CORPORATE UPDATE

Range Energy Resources Inc. believes that based on public reports, a second well will be drilled during the fourth quarter of this year on the Khalakan block in Kurdistan. Range holds an indirect minority interest in the Khalakan block. Range holds this interest through its direct minority interest in New Age Al Zarooni 2 Ltd., which in turn owns a 50-per-cent interest in Gas Plus Khalakan Ltd. Gas Plus holds the direct interest in the Khalakan block through its production sharing contract with the Kurdistan regional government. Range therefore holds an indirect 24.95-per-cent interest in the Khalakan block. Gas Plus appointed New Age (African Global Energy) Ltd. to carry out operations on the Khalakan block.

Range and its board have spent considerable time and effort to gain intelligence on the activity of the operator of the Khalakan block. As previously reported, Range has received limited information from its joint venture partners regarding progress of the exploration and development activities on the Khalakan block. In fact, Range commenced an arbitration proceeding against its joint venture partners in an effort to obtain more information on these development activities and to secure the right to disseminate the material information to its shareholders. Because of this lack of information, and contractual limitations on its ability to disclose information to the public, Range has had to look for public disclosures regarding the activities on the Khalakan block before it can report material information to its shareholders and the public.

Public information on the Khalakan block can be found on-line. Although Range believes the information to be reliable, it cannot guarantee its accuracy. The company assumes no responsibility as to the accuracy or completeness of any information contained in this news release that it has obtained from public sources.

The company believes that the cumulative public evidence that it has found indicates that new construction for a second well on the Khalakan block is under way.

  1. The well is named Shewashan-1.
  2. Public evidence indicates that New Age African is preparing to drill this well in the second half of 2013. Public sources state that the rig to be used at the Shewashan-1 wellsite is DQE-51.

From Range Energy's research, it expects Shewashan-1 to be located on Block 29 close to a nearby village in the Khalakan block, Shiwashan. The Khalakan block consists of two concessions, blocks 28 and 29 (sometimes referred to as blocks 6 and 7), and comprises approximately 620 square kilometres located in the central part of the Kurdistan region of Iraq. The Khalakan block is favourably located 12.5 miles southeast of the Taq Taq billion barrel oil field and 30 miles northwest of the Miran oil discovery. The ChemChemal giant gas field lies 12.5 miles to the southwest. Shewashan-1 likely lies between these three major producers in the area previously identified as the A5 prospect. The large Kirkuk field is approximately 50 miles north of the Khalakan block as well.

The A5 prospect, where Shewashan-1 is thought to be located, is said to be a favourable location based on the believed geographic location of the wellsite. For more information on the A5 prospect, see New Age's preliminary long form prospectus published on SEDAR on Sept. 15, 2011.

The company takes no responsibility for the accuracy or completeness of the information contained in the prospectus.

Range continues to believe in the Khalakan block, and in the future of the oil and gas sector in Kurdistan.

We seek Safe Harbor.

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