July 23, 2008 CNQ:RMIC
Range Oil and Gas enters Oman Block 57
The Board of Range Metals Inc. announced today that its wholly-owned subsidiary Range Oil and Gas Inc. (“Range” or the “Company”) has entered into a Memorandum of Understanding (“MOU”) with Taqah Oil Exploration (“Taqah”, a private corporation) to farm in to exploration block 57 in Oman.
Under the MOU, Range will pay 100% of the costs associated with drilling up to 3 exploration wells on Block 57 and will earn a 50% working interest in the Block. The total cost of the programme is estimated to be in the order of US$ 14 million. Range will be appointed operator of the Block, subject to Oman Government approval.
Block 57 is held under a Production Sharing Agreement entered into between Taqah and the Oman Ministry of Oil in 2006, and is located on the west flank of the prolific south Oman salt basin, close to existing oil production infrastructure.
Roger Bethell, geologist and director of Range Oil and Gas, believes that this area of Oman is analogous to the Mississippian sub crop play in Eastern Saskatchewan where unconformity traps contain several billion barrels of oil. The current seismic coverage with 2800km of 2D seismic and 31km of 3D seismic over Block 57 indicates 16 prospect leads with three of them having sufficient control to elevate them to drillable prospects. An ongoing seismic program is planned to upgrade the other leads to drillable targets.
The three initial wells are targeting unconformity traps in the Upper and Lower Khuff reservoirs. The first two wells will be drilled to approximately 1500 meters, and the third well to 3,400 meters to test deeper targets. Sub crop plays of the magnitude identified by seismic in this area of Oman may, by analogy with similar geological areas, contain large reserves of hydrocarbons.
The transaction is subject to agreement on definitive documentation, necessary regulatory and government consents and Range’s ability to raise the funds necessary to advance the project. Range is in final negotiations with a Canadian brokerage house to provide the necessary financing for the project.
Don Sheldon, Chairman of Range Metals states:
“We are delighted to have entered into this agreement with Taqah to pursue a high quality exploration opportunity. The opportunity was made available to Range through the efforts of Mr. Ala Nuseibeh (recently appointed to the Board of Range Oil and Gas), and we expect this to be he first of a series of opportunities generated for the benefit of shareholders.
Range Metals Inc. Announces Granting of Stock Options
Range Metals also wishes to announce that it granted incentive stock options to insiders and a consultant to purchase a total of 1,000,000 shares of Range Metals at a per share exercise price of $0.62 for a term of five years for the insiders and three years for the consultant (subject to earlier termination in accordance with the terms of Range Metal’s 2005 Stock Option Incentive Plan - Amended), vesting in stages over the term.
About Range Metals Inc.
Range Metals Inc., publicly traded on the Canadian Trading and Quotation System (CNQ:RMIC) and Frankfurt Stock Exchange (FWB: YGK), is involved in the exploration and development of gold, minerals, and oil & gas properties through its wholly-owned subsidiary, Range Oil & Gas Inc.
For further information on Range Metals Inc. (CNQ:RMIC), please visit the Company’s web site at www.rangemetals.com.
On Behalf of the Board of Directors:
(signed) “Donald R. Sheldon”
Donald R. Sheldon
President
THE CNQ AND FRANKFURT STOCK EXCHANGES HAVE NOT REVIEWED AND DO NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.
This release includes certain statements that may be deemed to be "forward looking statements" within the meaning of the U.S. Private Securities Litigation Form Act of 1995. All statements in this release, other than statements of historical fact, that address future production, reserve potential exploration and development activities and events or developments that management of Range expects, are forward looking statements . Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of Range Metals Inc. at www.sedar.com for further information.
