(RRL.L) Range Resources Ltd Buy/Sell

A copy of the full Half Year Report is available on the company's website www.rangeresources.com.au

For and on behalf of the Board

Yours faithfully

Peter Landau Executive Director

DIRECTORS' REPORT

Your directors submit the consolidated financial report of Range Resources Limited for the half-year ended 31 December 2009.

1. Directors

The names of the Directors who held office during or since the end of the half-year:

Sir Samuel Jonah Non-Executive Chairman

Peter Landau Executive Director

Marcus Edwards-Jones Non-Executive Director

Anthony Eastman Non-Executive Director

2. Results

The Consolidated entity incurred an operating loss after income tax of $1,764,380 (December 2008: $5,590,456) for the half-year ended 31 December 2009.

3. Review of Operations

Puntland

Following the conclusion of negotiations between the Company's Joint Venture Partner, Africa Oil Corp. ("Africa Oil") and the Government of the Puntland State of Somalia, Range, Africa Oil and the Puntland State of Somalia entered into amending agreements modifying the terms of the existing Production Sharing Agreements ("PSAs") made in respect of the Dharoor and Nugaal Valley Exploration Areas. The revised agreements were signed by the parties in Garowe, Puntland, subsequently approved by the Cabinet of the Puntland Government and ratified by the Parliament of the Puntland State of Somalia during December 2009.

With the conclusion of the negotiations and the execution of the amending agreements, the PSAs, as amended, now provide for initial exploration periods in respect of both blocks that have been extended from 36 months to 48 months with a revised expiry of 17 January 2011. In addition, the terms of the exploration programs have been amended so that Africa Oil can, at its option, drill one exploratory well in each of the Nugaal and Dharoor Valley Exploration Areas, or two exploratory wells in the Dharoor Valley, during the initial exploration period. In consideration of the extension of the exploration period, the parties agreed to voluntarily relinquish 25% of the original agreement area on or before 17 January 2010.

Onshore Puntland Interest: Range - 20%

Africa Oil Corp - 65%

Lion Energy Inc - 15%

The successful conclusions of these negotiations now paves the way for Africa Oil to commence operations and drilling of the first exploration well in Puntland for over 16 years.

Following the successful completion of negotiations regarding the onshore licences and previous technical presentations to the Government on the proposed offshore areas of interest, Range will look to continue negotiations regarding the formalisation of a new PSA with respect to the exploration and development of off shore Puntland in early 2010.

Georgia

In July 2009 Range entered into a Heads of Agreement with unlisted UK Company, Strait Oil & Gas (UK) Limited to acquire a 50% farm-in interest in two Oil & Gas blocks in Georgia, Eastern Europe. The two blocks subject to this agreement cover a contiguous area of 7,000 sq km (approx 10% of the surface area of the Country) and were subject to significant exploration in the Soviet era.

Subsequent to completion of the Heads of Agreement to complete Phase II of the PSA, approval was obtained from the Georgian Government for The Geophysical Institute of Israel to commence the 2D seismic operation on both Blocks.

Mobilisation of the vibrosis equipment was completed in October and after independent testing and technical audit the seismic operation started in November 2009.

Data quality has been consistently good to very good and the highly structured overthrust features, that will require competent data processing, are expected to provide many potentially viable structures as drilling targets.

An assessment of previously drilled gas wells is progressing and will be followed by an independent review.

Texas

In September 2009, Range acquired a 25% working interest in the North Chapman Ranch Project located in Nueces County, Texas. The project area encompasses approximately 1,280 acres (and subsequently increased to 1,680 acres) in on of the most prolific oil and gas producing trends in the state of Texas.

During the half year drilling was completed on the Smith #1 well with testing confirming a commercial discovery.

The Smith #1 was drilled and logged to a depth of 13,975' (4,260m). Based on open-hole logs indicating approximately 120' (37m) of net pay thickness in three zones with no water, 4 ½" production casing was run to TD and cemented in place. After an interval of just 20' (6.2m) in one of the three zones was perforated, bottom-hole pressure was estimated to be approximately 11,650 psi.

The well was unloaded on a 6/64" choke until gas reached the surface, and subsequently opened to a 10/64" choke for 5 hours to clean the well up. Despite the small choke size, the average rate during this period was 2.4 million cubic feet of gas and 191 barrels of oil per day with no water. Final flowing casing pressure was 6,354 psi.

The well was shut in with a final measured casing pressure of over 9,000 psi.

4. Events Subsequent to Reporting Date

Texas

The Smith #1 Well was successfully connected to the commercial sales line with initial production from the middle zone significantly better than expected.

It is anticipated that the well will be producing from this zone for several months before it will be shut in and a completion rig likely moved in. Once the completion rig is in place, the lower zone is expected to be fracture stimulated and tested, along with the upper zone. All three zones will then be comingled and produced.

Consolidated
31 December 31 December

$ $
Notes

Revenue from continuing operations
Interest Income 5,239 126,524
Other Income - 33,105

Expenses from continuing operations
Depreciation (14,416) (41,734)
Administration expenses 2 (1,698,726) (2,338,373)

Unrealised gain / (impairment) on available
for sale financial assets - (2,609,105)
Foreign exchange (loss) / gain (56,477) 428,950

Loss before income tax expense from
continuing operations 2 (1,764,380) (4,400,633)

Income tax expense - -

Loss after tax from continuing operations (1,764,380) (4,400,633)

Loss from discontinued operations 11 - (1,189,823)

Net loss for the half-year attributable to (1,764,380) (5,590,456)

equity holders of Range Resources Ltd Other comprehensive income
Changes in the value of available-for-sale 280,870 835,439

investments Other comprehensive income for the half-year,
net of tax 280,870 835,439

Total comprehensive income / (loss) attributable to equity holders of Range
Resources Ltd (1,483,510) (4,755,017)

Continuing Operations
Basic loss per share (cents per share) (0.40) (2.20)

Diluted loss per share (cents per share) N/A N/A

Total operations
Basic loss per share (cents per share) (0.40) (2.80)

Diluted loss per share (cents per share) N/A N/A

The Company's potential ordinary shares were not considered dilutive as the Company is in a loss position.

Consolidated
31 December 30 June

$ $
Notes

Current Assets
Cash and cash equivalents 174,073 416,417
Trade and other receivables 98,002 42,451
Other current assets 28,468 52,225
Total Current Assets 300,543 511,093

Non-Current Assets
Property, plant & equipment 41,205 49,779
Financial assets available for sale 6 1,472,559 1,191,689
Exploration expenditure 7 83,183,290 79,888,841
Investment in associates 8 3,733,812 -
Total Non-Current Assets 88,430,866 81,130,309
Total Assets 88,731,409 81,641,402

Current Liabilities
Trade and other payables 1,443,037 770,027
Borrowings 9 1,609,562 -
Total Liabilities 3,052,599 770,027
Net Assets 85,678,810 80,871,375

Equity
Issued capital 10 110,279,230 104,063,285
Reserves 12,635,050 12,279,180
Accumulated losses (37,235,470) (35,471,090)
Total Equity 85,678,810 80,871,375

Consolidated
Notes 31 December 31 December

$ $

Cash Flows From Operating Activities
Payments to suppliers and employees (1,692,320) (1,052,165)
Interest received 5,239 53,071
Interest paid and borrowing costs (75,562) -
Net cash provided by/(used In) Operating (1,762,643) (999,094)

Activities Cash Flows From Investing Activities
Payments for plant and equipment (5,842) (226,614)
Payments for exploration and development 7 (2,465,053) (2,613,717)

expenditure
Deposits to acquire investments in 8 (3,733,812)

associated
Loans to other entities (79,638) -
Loans to related entities - (33,495)
Net cash provided by/(used In) Investing (6,284,345) (2,873,826)

Activities Cash Flows From Financing Activities
Proceeds from issues of shares 10 6,509,969 -
Payment of share issue costs (305,325) (7,786)
Loan funds received 9 1,600,000 -
Net cash provided by/(used in) Financing 7,804,644 (7,786)

Activities
Net Increase/(Decrease) In Cash Held (242,344) (3,880,706)
Cash at beginning of period 416,417 4,137,360

Cash at end of period 174,073 256,654

END

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