Range Resources Limited  is pleased to announce the following update with respect to the Company’s Trinidad operations with the following highlights:

Morne Diablo and South Quarry licenses extended for an additional ten year period;

3,000 acres added to the east of the existing Morne Diablo license, extending current Lower Forest development trend while adding potential for other, deeper targets;

Enhanced Royalty reduced from previous farm out agreements - net back increased to $40 / bbl based on 1,000 bopd increasing to $50 on 2,000 bopd; and Finalisation of US$35m Debt Financing Facility.

US$35m Debt Financing Facility 
The Company is pleased to announce that following an extensive due diligence exercise from both a technical and operational perpective, finance Company Meridian SEZC has signed a commitment to purchase USD$35M of 5-year Monetary Production Payment (“MPP”) securities from Range Resources Limited.  The MPPs have a coupon of 12% and shall be secured by future cash flows from Range’s Trinidad operations and repayable in cash on a straight line monthly amrtised basis. Meridian’s commitment is subject to final documentation and regulatory&nb sp;approvals with a targeted draw down date end of March.

Morne Diablo / South Quarry FOA Extensions Executed
Range is also pleased to announce that it has extended its existing farm out agreements for the Company’s Morne Diablo and South Quarry licenses until 31 December 2021, with the minimum work commitments for each license well within the Company’s current development plans. As previously announced, the new farm out agreement, will also see a reduction in the enhanced royalty currently being paid by the Company with the revised terms seeing an improveent in the net back amount rece ived by the Company per barrel of oil produced. The revised royalty rates at production rates of 1,000 bopd will see net backs increase to circa $40 / barrel before tax and circa $50 / barrel before tax at 2,000 bopd – assuming $90 per barrel oil and opex at similar levels.
  
With the Morne Diablo and South Quarry FOA now extended until December 2021, along with the Beach Marcelle license which extends to February 2020, the Company now is in an excellent position to develop the multiple producing trends in each area while systematically explorig for new reserves and effectively producing older fields such as Beach Marcelle through secondary recovery work. 

Additional Acreage
With respect to the Morne Diablo license, the extended FOA now includes an additional circa 3,000 acres to the east of the existing license area. Block A is an extension to the east of the current Lower Forest development trend where the Company is currently drilling. As previously announced, the current Lower Forest wells that have been drilled and tested to date are showing sands which correlate to the sands encounered in the QUN16 well that was drilled and tested in 1942, which is located some 3,000 ft to the e  ast of the current development wells, on the edge of the existing Morne Diablo license. Inclusion of Block A in the extended Morne Diablo FOA allows the Company to continue the Lower Forest development up to and beyond the historical QUN16 well utilizing the Company’s shallow capacity rigs.
 
In addition, the previously announced reserves upgrades across the Company’s Trinidad licenses, did not include any reserves / resources associated with Block A, hence the Company will look to engage its independent reserves auditor to perform an initial reserves / resource assessment across the additional 3,000 acres of Block A which the Company believes will further add to the 420% P1 and P2 reserve additions that the Company has booked since it acquired the Trinidad assets mid-2011.

Peter Landau, Range’s Executive Director added, “The  ;process of extending the Morne Diablo and South Quarry contracts is a clear demonstration of the Trinidad authorities and sakeholder’s commitment to work with partners such as Range to increase drilling activity and raise production. With the new debt facility in place, we intend to fulfill our part of that commitment and now have the additional time, acreage, and capital to achieve those objectives. In addition to the contract extensions with their enhanced economics, Range has initiated third party discussions regarding additional opportunities to expand o ur operating base outside of the exiting contract areas and grow the Trinidad portfolio into a core producing area for the Company for decades to come.”