Mr. Toufic Chahine repotrs
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.
- The well is named Shewashan-1.
- 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
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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