(Alliance News) - Star Phoenix Group Ltd said Friday the Trinidad & Tobago state oil and gas firm has approved the sale of Range Resources Trinidad Ltd to LandOcean Energy Services Co Ltd.
Shares in the oilfield services firm, formally known as Range Resources, were down 17% in London on Friday morning at 1.66 pence each.
Star Phoenix shareholders approved the sale of its Trinidad assets to LandOcean in late November. LandOcean will pay USD2.5 million and forgive the approximately USD91 million debt and payables due from Range Trinidad to LandOcean.
The deal will be subject to a transaction fee payable to the state firm, Heritage Petroleum Co Ltd, due to a change of control clause in the Morne Diablo and South Quarry farm-out agreements.
The fee will be no more than 20% of the cash value of the transaction attributable to the Morne Diablo and South Quarry licences. The exact amount will be agreed with Heritage in due course, Star Phoenix said.
The last hurdle facing the sale is the approval of LandOcean shareholders, who will vote on the deal at a meeting on Monday.
Star Phoenix also noted Heritage has extended the company's incremental production services contract for Beach Marcelle by three months. The contract will now end on March 31, instead of January 31.
The company has submitted a formal request to Heritage for a 10-year extension of the contract, and expects to receive a confirmation from Heritage before March 31.
By Paul McGowan; paulmcgowan@alliancenews.com
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