TRINIDAD INDONESIA
Corporate PresentationDecember 2017
Disclaimer
Corporate Presentation2
This presentation has been prepared by Range Resources Limited (“Range”or the "Company").
This presentation is for information purposes only and does not constitute orform part of an offer, solicitation or invitation of any offer, to buy or subscribefor any securities, nor should it or any part of it form the basis of, or be reliedin any connection with, any contract or commitment whatsoever.
The information contained in this presentation has not been independentlyverified. No representation or warranty expressed or implied is made as to,and no reliance should be placed on, the fairness, accuracy, completeness orcorrectness of the information or opinions contained in this presentation.Neither the Company nor any of its respective officers, employees, affiliates,advisers or representatives accept any liability whatsoever (in negligence orotherwise) for any loss howsoever arising, whether directly or indirectly, fromany use, reliance or distribution of this presentation or its contents orotherwise arising in connection with this presentation.
This presentation includes forward-looking statements. These statementscontain the words "anticipate", "believe", "intend", "estimate", "expect“, “plan”and words of similar meaning. All statements other than statements ofhistorical facts included in this presentation, including, without limitation, thoseregarding the Company’s financial position, business strategy, plans andobjectives of management for future operations (including development plansand objectives relating to the Company's business and services) are forward-looking statements. Such forward-looking statements involve known andunknown risks, uncertainties and other important factors that could cause theactual results, performance or achievements of the Company to be materiallydifferent from results, performance or achievements expressed or implied bysuch forward-looking statements. These forward-looking statements speakonly as at the date of this presentation. Predictions, projections or forecasts ofthe economy or economic trends of the markets are not necessarily indicativeof the future or likely performance of the Company. Past performance is notnecessarily indicative of future performance. The forecast financialperformance of the Company is not guaranteed. You are cautioned not toplace undue reliance on these forward-looking statements, which are basedon the current views of the Company on future events. The Companyexpressly disclaims any obligation or undertaking to disseminate any updates
or revisions, except as required by law, to any forward-looking statementscontained herein to reflect any change in the Company's expectations withregard thereto or any change in events, conditions or circumstances on whichany such statement is based.
Resources estimates provided in presentation have been extracted from thecompetent persons reports prepared in respect of the Company's Trinidadianand Indonesian assets and which are available on the Company's websiteand conform to the ASX Listing Rules and AIM Rules for Companies.
The Company is not aware of any new information or data that materiallyaffects the assumptions and technical parameters underpinning the estimatesof resources.
The estimated quantities of petroleum that may potentially be recovered bythe application of future development projects relate to undiscoveredaccumulations. These estimates have both an associated risk of discoveryand a risk of development. Further exploration appraisal and evaluation isrequired to determine the existence of a significant quantity of potentiallymoveable hydrocarbons.
Neither this presentation nor any copy or portion of it may be sent or taken,transmitted or distributed, directly or indirectly, into the United States, Japan,Canada or any other jurisdiction which prohibits the same. The securities ofthe Company have not been, and will not be, registered under the U.S.Securities Act of 1933, as amended (the "Securities Act"), or the securitieslaws of any state or other jurisdiction of the United States or elsewhere, andthe securities may not be offered or sold within the United States exceptpursuant to an exemption from, or in a transaction not subject to, theregistration requirements of the Securities Act and applicable state or localsecurities laws. This presentation is not for distribution in, nor does itconstitute an offer for sale of securities in the United States. The Companydoes not intend to conduct a public offering of its securities in the UnitedStates.
Exciting investment opportunity –an oil and gas company with production, revenues, reserves
Corporate Presentation3
TRINIDAD
✓ EXISTING OIL PRODUCTION – 580 bopd (quarter ended 30 Sep 2017)
✓ SUBSTANTIAL RESERVES – 16 million barrels (net 2P)
✓ FOCUSED ON PRODUCTION GROWTH
✓OWN RIGS AND EQUIPMENT – lower operating costs and operational flexibility
INDONESIA
✓ LOW CAPITAL COMMITMENT
✓ NEAR TERM PRODUCTION – from low-cost workover programme
✓ HIGH QUALITY ASSET – previous production with significant upside potential
CORPORATE
✓ ADOPTING AN INTEGRATED MODEL – upstream plus oil services
✓ SIGNIFICANT GROWTH – from existing assets and new opportunities
✓ STABLE FINANCIAL POSITION – existing cash with medium-term debt maturity
✓ ENHANCED LIQUIDITY – AIM and ASX-listed
Executing growth strategy
Corporate Presentation4
Expand waterflood,
grow production and
revenues in Trinidad
Secure third party
contracts and
grow revenues of
Oilfield Services
(RRDSL)
Continue to evaluate
new asset
acquisitions
Complete workovers,
commence
production and firm
up development plan
in Indonesia
2017 highlights
Corporate Presentation5
✓ Two significant assets acquired
✓ Successful waterflood programme implemented
showing production increase (~35% of total
production is now from waterflood)
✓ 2 new wells drilled, 233 workovers completed
✓ Continued HSE performance above industry
standards
✓ Initial work programme in Indonesia underway
✓ CPRs on two assets completed (Trinidad and
Indonesia)
✓ AIM re-admission completed
Trinidad operations –production, reserves, revenue, opportunity
• Majority interest and operatorship across all
blocks
• Production of 580 bopd (quarter ending 30
Sep 2017)
• Reserves of 16 million barrels (CPR, 2017)
• Over 100 wells have been drilled by Range in
the last 5 years
• 180 wells are currently producing from zones
ranging in depth from 400 to 4,000 feet
• Active work programme to increase
production: waterflood, selective drilling, and
workovers
• Focus on most prospective acreage
Corporate Presentation6
Field Range’s
interest
Status Licence
expiry
Licence
area (km2)
Beach
Marcelle
100% Development 31/01/2020 16
Morne
Diablo
100% Development 31/12/2021 35
South
Quarry
100% Development 31/12/2021 14
St Mary’s 80% Exploration 31/10/2020 153
Trinidad reserves and resources summary –solid and independently verified
Corporate Presentation7
1P 2P 3P
Reserves (net to Range)
MMstb10.0 16.0 22.9
1C 2C 3C
Contingent Resources
(net to Range)
MMstb
4.6 8.0 15.4
1. Independently certified by Rockflow Resources Ltd
(June, 2017)
2. Includes reserves and resources for Morne Diablo,
South Quarry and Beach Marcelle fields
3. Excludes highly prospective exploration acreage
• Recently completed CPR confirms large
certified oil reserves base
• 70% of reserves are in waterflood projects
Waterflood is key –to growing production
Corporate Presentation8
Beach Marcelle waterflood
• Range’s largest waterflood project
• The field is closely connected to well developed
infrastructure
• It has been split into a number of individual
“areas”, based on fault blocks
• South East area successfully implemented
• Work completed to increase water injection
rates (by additional 700 bwpd)
Planned expansion
• During late 2018 / 2019, waterflood programme
expected to expand to further areas:
➢ South Quarry
➢ South West (Beach Marcelle)
➢ North East (Beach Marcelle)
Beach Marcelle waterflood areas
South East area –current surface infrastructure
Corporate Presentation9
Source: Google maps
New acquisitions –completed during the year
Corporate Presentation10
1.
Indonesia
Perlak Field
2.
Trinidad
Oilfield Services
1. Perlak field –a highly attractive acquisition
• Low acquisition cost
• Low level of commitment during MWO period
• A proven play surrounded by producing fields
and infrastructure
• High prior drilling density (over 300 wells
drilled)
• Only produced by primary depletion (c. 50
mmbbls to date)
• Very light oil with average API of 45-50
degrees
• Very limited recent activity
• Significant potential for rapid return to
production through planned workovers
• 15 year contract with Pertamina (Indonesian
state-owned oil and gas corporation)
Corporate Presentation11
Perlak field –a proven play surrounded by producing fields and infrastructure
Corporate Presentation12
Perlak –low commitment obligation
Corporate Presentation13
Net cost to
Range (US$ m)ActivityCompletion
date
Geological, geophysical and reservoir studies
Well surveying
1 well workover
3D seismic data evaluation
3 well workovers
Geological, geophysical and reservoir studies
1 well drilling
1
Year
2
3 Sep 2020
0.3
0.7
1.4
TOTAL 2.3
Sep 2019
Sep 2018
Perlak field –activity already underway
• Building the operational team – key
appointments underway
• Budget and work programme being
agreed with Pertamina for 2018
• Offices being established in Jakarta
and at the field in Aceh
• Detailed scope being prepared for
G&G studies, and surface checking at
field
• Reviewing potential reopening of wells
for the 2018 work programme
• Work underway to establish a service
company in Indonesia (subsidiary of
Range)
Corporate Presentation14
Perlak field opening ceremony
28 November 2017
Indonesia contingent resources summary –independently verified
Corporate Presentation15
1C 2C 3C
Net to Range
(based on 23% interest)
Associated Gas (Bscf) 1.7 10.9 41.1
Oil (MMstb) 0.9 3.1 18.4
Net to Range
(based on 42% interest)
Associated Gas (Bscf) 3.2 20.0 75.0
Oil (MMstb) 1.6 5.6 33.6
1. Independently certified by LEAP Energy Partners Sdn (August, 2017)
2. Range’s interest will increase from 23% to 42% once the minimum
work programme is completed at the end of the 3-year period
2. Trinidad oilfield services business (RRDSL)
Corporate Presentation16
Why is it attractive for Range?
• One of the most modern rig fleets in the Caribbean capable of supporting a wide variety of oilfield operations
• Acquisition significantly lowers Range’s operating and drilling costs, provides improved netback per barrel and a greater operational flexibility
• Provides an additional income stream from work undertaken for third parties
• Plans to grow the drilling business into a leading oilfield services provider in the Caribbean and LatAm
Recent third party clients
2017 / 2018 –active work programme and newsflow across all assets
Corporate Presentation17
• Trinidad development well results
• Trinidad waterflood programme progress update
• Indonesia commencement of work programme
• RRDSL activity update
• Trinidad development drilling
• Potential acquisitions of new assets
Commitment to engaging with all shareholders:
• Investor Q & A sessions
• Webcasts
• Presentation forums
• Regular operational and corporate updates
Summary –exciting period of results and growth
Corporate Presentation18
✓ Established assets with existing reserves and
production
✓ Integrated model – upstream and oil services
✓ Active work programme aimed at production
uplift
✓ Ramp up in activity from three assets to
provide regular newsflow
✓ Following a period of active investment,
Range is well positioned to grow production,
revenues and cashflows
Management team –strong, experienced and focused
Corporate Presentation20
Nick BeattieCFO and Company Secretary
• Over 20 years of experience
in finance working with a
range of international banks
• Previously, Managing
Director with BNP Paribas in
the Upstream Oil & Gas
team in London
• Associate Member of the
Association of Corporate
Treasurers and Fellow of the
Chartered Institute of
Bankers
Lijun XiuVice President of Operations
and Production
• Geological career of over 30
years
• Previously worked for the
Research Institute of
Petroleum Exploration &
Development as Deputy
Chief Geologist
• Holds a number of
professional titles, including
Reserves Evaluation
Specialist from the Ministry
of Land and Resources of
China
Yan LiuCEO and Executive Director
• Over 20 years of accounting
and corporate advisory
experience in China and
Australia
• Previously, the Chief
Financial Officer with China
Rerun Chemical Group
Limited, a China-based
lubricant oil company
• Bachelor degree in
Economics and a Master
degree in Commerce
Dr Douglas FieldChief Petroleum Engineer
• Petroleum and reservoir
engineer with over 30 years
international exploration and
production experience
• Previously held senior
engineering and business
development posts at Tullow
Oil plc
• PhD in Organic Chemistry
from the University of Leeds
Management Team –strong, experienced and focused
Corporate Presentation21
Theo EleftheriadesGroup Financial Controller
• Chartered Accountant with
over 6 years' experience,
predominantly in the oil and
gas sector
• Previously, was an Entity
Controller at Gazprom. Prior
to that, was a Group
Financial Accountant at
Seadrill, a leading listed
offshore drilling contractor
Karlene AliRange Trinidad Deputy
General Manager
• Over 10 years of oil industry
experience, having held
various finance, HSE and
administrative positions with
independent oil and gas
companies in Trinidad
• Responsible for
communications,
government and stakeholder
relations, corporate social
responsibility and contract
compliance
Evgenia BezruchkoCorporate Development
Manager
• Extensive experience in
corporate development and
capital markets in natural
resources sector
• Prior to joining Range in
2012, worked in corporate
broking and equity sales for
an independent merchant
bank, covering a wide range
of listed and private oil & gas
and mining companies
Board of Directors –aligned with shareholders’ interests
Corporate Presentation22
Lubing LiuNon-Executive Director
• Over 20 years extensive
global experience in
petroleum exploration,
development, production,
joint venture operations and
new ventures
• Currently an independent
consultant to Melbana
Energy Limited, an ASX
listed E&P company
• Prior to that, held various
subsurface leader roles,
including Sinopec
Zhiwei (Kerry) GuNon-Executive Chairman
• Experienced corporate
lawyer, currently a partner of
Dentons, one of the largest
global law firms
• Worked with numerous
companies on various stock
markets including Chinese A
share, NASDAQ, TSX and
HKSE
• Participated in several
Venture Capital and Private
Equity investment cases
with large international funds
Yan LiuCEO and Executive Director
• Over 20 years of accounting
and corporate advisory
experience in China and
Australia
• Previously, the Chief
Financial Officer with China
Rerun Chemical Group
Limited, a China-based
lubricant oil company
• Bachelor degree in
Economics and a Master
degree in Commerce
Board of Directors –aligned with shareholders’ interests
Corporate Presentation23
Juan WangNon-Executive Director
• Commercial banking
background, having worked
for Deutsche Bank and Bank
of East Asia
• Previously, President of
Energy Prospecting
Technology USA, Inc. and
LandOcean Energy Canada
Ltd
• Prior to that, an investment
manager and director at
Anterra Energy Inc.
responsible for Chinese
investor liaisons
Dr Yi ZengNon‐Executive Director
• Over 30 years of experience
in the oil and gas and mining
industries
• Held various technical and
research positions with
global companies, including
BHP Billiton and Santos
Asia Pacific
• PhD in Geophysics from the
Victoria University, New
Zealand
Corporate snapshot
Corporate Presentation24
Share Price AU$0.004 (as at 12 December 2017)
Market exchange AIM and ASX
Ticker AIM: RRL, ASX: RRS
Market Capitalisation A$30 m (as at 12 December 2017)
Ordinary Shares in Issue 7,600 m
Options in Issue c. 800 m
Cash US$17 m (as at 30 Sep 17)
Year End 30 June
Stable liquidity position –existing cash with medium-term debt and payable maturity profile
Corporate Presentation25
• Range has cash on hand of approximately US$17 million (as at 30 September 2017 quarterly report)
• The payable and debt position has grown over the last few years principally as a result of investment into the Trinidad assets to establish long-term growth
• Competitive cost of finance at 6% (8% for convertible bond)
• No maturities until late 2019 (majority in 2020)
• No financial covenants or restrictive undertakings
• Range focused on growing production and cashflow and will also start review of maturing payable profile during 2018
• Various means open to Range for refinancing
Component Amount (US$ m)
RRDSL Loans
Remaining debt in RRDSL which is
principally due to newly acquired rigs.
Asset backed by rigs
21.4
RRDSL Acquisition Payment
Not due until end November 2020
allowing time to grow RRDSL into a
profitable business
5.5
Trinidad investment spend
The sums incurred during the past 2-3
years covering Trinidad operations,
drilling, waterflood investment etc.
Repayable in April 2020 allowing time to
grow production levels
40.2
Convertible Bond
Convertible at £0.008/share. Repayable
in November 2019
20.0
Corporate Presentation26
Private individuals
Beijing Sibo Investment Management LP
Abraham Ltd
Capital structure –balanced mix of shareholders
• Balanced mix of institutional, high net worth and private shareholders
• Private individuals (59% shareholding) –over 20,000 international high net worth individuals and smaller private investors
• Beijing Sibo Investment Management LP (32% shareholding) – an investment fund headquartered in Beijing, China, comprised of institutional and high net worth individual investors
• Abraham Ltd (9% shareholding) – a Hong-Kong based private investor
• Board Independence – the majority of the Board are independent with no link to largest shareholders
59%32%
9%
Corporate Presentation27
Trinidad –a world class oil and gas province
• Leading oil & gas producer in the Caribbean
(net exporter of oil and gas)
• Prolific hydrocarbon basin that forms part of
Eastern Venezuelan basin
• 11 km from the Venezuelan coast
• Long history of commercial oil production
since 1910
• Total production to date over 3 billion barrels
of oil
• Proven reserves of 0.7 billion barrels of oil
• Oil & gas accounts for 40% of GDP and
80% of exports
• 168,000 bopd refinery (throughput c.
113,000 bopd)
• Well established extensive infrastructure
and facilities
• Majors currently operating in Trinidad: Shell,
BP, BHP, Perenco, EOG, Chevron
Corporate Presentation28
Indonesia –significant player in the international oil and gas industry
• Indonesia, an OPEC-member country, has been active in the oil and gas sector for over 130 years after its first oil discovery in North Sumatra in 1885
• Top 20 of the world’s oil producers, 2016 oil production: 831,000 bopd
• Proven oil reserves: 3.7 billion barrels
• About 75% of exploration and production is located in Western Indonesia
• Before the fall in oil prices in 2013, the sector generated US$28 billion a year in foreign income, provided 20% of the government’s revenues, and supported 280,000 jobs
• Declining oil production and increased consumption has resulted in Indonesia being a net oil importer
• The Government is introducing incentives to encourage investment:
– New improved production sharing splits in recent bid rounds with after-tax returns for oil increasing from 15% to 25% and for gas from 30%-35% to 40%
– In early 2017, the Government introduced the Gross Split PSC
Waterflood –expanding on the proven concept
70% of Range’s reserves are in waterflood
• Trinidad onshore oilfields are mature, with
some having produced for over 100 years
• Most of the fields have been traditionally
produced by “primary recovery” – only
recovers about 18% of the oil-in-place
• Waterflooding is estimated to increase the
total recovery factor to approximately 30%
Common and proven secondary recovery practice
• Texaco used waterflooding successfully in
parts of the Beach Marcelle field in
the1950s/60s
• Pilot project competed by Range and
successfully producing since 2010
• Two further waterflood projects successfully
competed by Range and are in production
• Approximately 35% of Range’s current
production is from waterflood
Corporate Presentation29
Glossary
Corporate Presentation30
1P Proven reserves with 90% probability of being recovered
2P Proven plus probable reserves with 50% probability of being recovered
3P Proven plus probable plus possible reserves with 10% probability of being recovered
1C A low estimate category of Contingent Resources
2C A best estimate category of Contingent Resources
3C A high estimate category of Contingent Resources
bscf Billions of standard cubic feet of gas
bopd Barrels of oil per day
bwpd Barrels of water per day
CPR Competent Persons Report
MMstb Million stock-tank barrels of oil