Range Resources Limited is pleased to announce that as part of the Board's on-going review of opportunities and strategic options, Range has secured a strategic stake (19.9%) in Citation Resources Limited. Citation holds a farm in right to acquire a 70% interest in Latin American Resources Ltd, which holds an 80-100% interest in two oil and gas development and exploration blocks in Guatemala (“Projects”). LAR is the operator of the blocks. Additionally, Range has acquired a direct 10% equity stake in LAR.

The Projects consist of Block 1-2005 and Block 6-93 in the South Peten Basin in Guatemala (“Guatemalan Blocks”). The Guatemalan Blocks have Canadian NI 51-101 certified proved plus probable (2P) reserves of 2.3 MMBBL (with approximately 0.45 – 0.6 MMBBls attributable to Range’s combined equity interest in Citation and 10% direct interest in LAR), with significant exploration upside potential. In addition, the blocks have had significant previous exploration with the two well appraisal drilling program currently underway with the Atzam #4 well having already been successfully completed and flow testing currently underway. The Projects and drilling/operational infrastructure are owned by LAR together with its minority joint venture partners in a similar set up to Range's Trinidad operations.

The strategic stake in Citation and LAR provides Range with non-operating exposure to a project with known reserves and significant short term upside potential, as well as creating the potential spin off vehicle for the company’s Puntland assets. Given the current share price and the development potential of Trinidad, the Company's operational and financial focus remains on Trinidad. With that view, Range believes the stake in Citation to be a cost effective growth opportunity with minimal further funding required in the near term.

Transaction Details
Range will acquire its 19.9% strategic interest in Citation, by conversion of existing debt funding provided by Range to Citation into ordinary Citation shares (subject to any necessary Citation shareholder approvals) at $0.02 with a 1 for 2 free attaching listed Citation option ($0.04, June 2015), which is approximately $2m for the 19.9% interest. In addition, Range will pay $2m for the 10% interest in LAR, which is finance carried through the first US$25m spent on the Project. Concurrently, Range has completed a placement of 40m new shares to Citation nominees at A$0.05 per share (being a premium to the current share price) to raise gross proceeds of $2m, along with the issue of 40,000,000 unlisted options ($0.05, 31 January 2016) in facilitation, introduction and corporate advisory fees.

Executive Director Peter Landau commented:
“The acquisition of the interest in Guatemala through the strategic stake in Citation Resources and at project level further strengthens our portfolio of assets in the region that has yielded significant discoveries, yet remains relatively underexplored. This acquisition is consistent with Range’s strategy of acquiring low cost barrels in areas of strategic advantage. It provides Range with a unique opportunity to participate in near term appraisal and development along with potential high impact exploration opportunities at minimal costs. We now look forward to the flow test results from the first well, and subsequent spudding of the second well.”

Guatemala Projects Summary – Atzam and Tortugas Formations

The Projects consist of Block 1-2005 and Block 6-93 in the South Peten Basin in Guatemala (“Guatemalan Blocks”). As reported by Citation, the Guatemalan Blocks have Canadian NI 51-101 certified proved plus probable (2P) reserves of 2.3 MMBBL, with significant exploration upside potential. In addition the blocks have had significant previous exploration with the two well appraisal drilling program currently underway with the Atzam #4 well having already been successfully completed and flow testing currently underway. The projects and drilling / operational infrastructure are owned by LAR together with its minority joint venture partners in a similar set up to Range's Trinidad operations.

The first appraisal well Atzam #4, which successfully drilled to its target depth of 4,500 ft., is currently undergoing flow testing operations. The intention is for the second well, Atzam #5, to spud following completion of the flow testing program on the Atzam #4 well. The Atzam #4 well is being drilled on the same structure that the Atzam #2 well tested at an initial flow rate of up to 1,200 BOPD of 34°API oil at a depth of 3,850 ft.

Recent mapping of the Atzam structure using existing data from previous operators (Basic, Hispanoil) and MEM, and incorporating reservoir data acquired since production initiated in December 2007, indicate the possibility of a structure of comparable size and orientation to that of the existing Rubelsanto field in Guatemala. To date, the Rubelsanto field has produced more than 30 MMBBL of oil since its discovery in 1976. The field currently continues to produce more than 1,000 BOPD, 36 years after its discovery.

In addition to the Atzam structures on Block 1-2005, the Tortugas structure is a suspended oil field. Originally 17 wells on Tortugas salt dome were drilled by Monsanto looking for sulphur. One well (T9B) had an oil blowout at approx 2,200 ft and most others had oil shows in multiples zones. The Atzam and Tortugas Fields have had significant previous exploration and development with 2D seismic and previous production wells. In 2012/13 the planned exit production is approximately 1,000 bbl/d based on successful production from the two new appraisal wells based on the previous flow rates of wells drilled on the same structure. For more information, please refer to citation.net.au

Guatemala Overview
Guatemala is a politically stable country with a developing economy. Guatemala has enjoyed political stability since 1983 when the first free election for National Assembly (Congress) took place and a new constitution, currently in force was approved. In 1985 the first civil president was elected. Since that date, there have been six civilian presidents elected in free and democratic elections. Guatemala has enjoyed more than 30 years of stability, in the social, economic, and political sectors Underpinning development in Guatemala are excellent fiscal terms with net backs per barrel of approximately US$45 (assuming US$80 oil price) after all costs (including taxes and royalties). Current production in Guatemala is approximately 14,000 bopd with similar hydrocarbon geology to Mexico. The trends of major Mexican discoveries (such as the Nazareth Field) have been found to extend into Guatemala. The major producing basins, North Peten and South Peten, account for 90% of domestic production.