25 Sep 2009 10:10
RANGE RESOURCES LIMITED AND CONTROLLED ENTITIES ABN 88 002 522 009 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2009 CORPORATE DIRECTORY Directors Auditors Samuel JONAH BDO Kendalls Audit & Assurance (WA) Pty Ltd (Non-Executive Chairman) 128 Hay Street SUBIACO WA 6008 Peter LANDAU Telephone: (08) 9380 8400 (Executive Director) Facsimile: (08) 9380 8499 Marcus EDWARDS-JONES Share Registry (Australia) (Non-Executive Director) Computershare Investor Services Pty Ltd Level 2, Reserve Bank Building Anthony EASTMAN 45 St Georges Terrace (Non-Executive Director) PERTH WA 6000 Telephone: (08) 9323 2000 Company Secretary Facsimile: (08) 9323 2033 Jane FLEGG Anthony EASTMAN Share Registry (United Kingdom) Computershare Investor Services plc Registered Office The Pavilions Level 3, 1 Havelock Street Bridgewater Road WEST PERTH WA 6005 Bristol BS99 6ZZ Telephone: (08) 9488 5220 United Kingdom Facsimile: (08) 9324 2400 Telephone: +44 (0) 870 703 6300 Facsimile: +44 (0) 870 703 6114 Principal Place of Business Level 3, 1 Havelock Street Home Exchange WEST PERTH WA 6005 Australian Stock Exchange Limited Telephone: (08) 9488 5220 Exchange Plaza Facsimile: (08) 9324 2400 2 The Esplanade
Website: www.rangeresources.com.au PERTH WA 6000
ASX Code: RRS Country of Incorporation Australia Overseas Exchange Alternative Investment Markets (AIM) c/- London Stock Exchange LONDON UK AIM Code: RRL
On behalf of the Board of Range Resources Limited ("Range"), I am reporting to you on the events of the Company during the 2008/2009 financial year.
For those shareholders who actively follow the fortunes of Range, it will comeas no surprise when I say that the 12 month period was an eventful one, whichdelivered both solid foundations for significant future growth and,frustration, with the drilling of the first well in Puntland, Somalia still
yetto occur.Puntland
Operating in Puntland has had, and will continue to have, its difficulties.Range is committed to its involvement in Puntland and is of the firm beliefthat when a project of significant substance has the capacity to benefit allinvolved, be it the Puntland Government, the Puntland people, our joint venturepartner Africa Oil, Range and our shareholders; patience and determination willultimately deliver success.During the year Puntland had a change in Government through peaceful democraticelections and Range has established a good working relationship the Governmentof His Excellency Dr Abdirahman Mohamed Mohamud. His Excellency's commitment toenhanced security, infrastructure and economic development in Puntland willassist all companies in operating in the region and make Puntland a moreattractive investment destination.As at the date of this letter, the Government and Africa Oil are innegotiations regarding the commencement of Africa Oil's planned 4 well drillingprogramme, following Africa Oil's delineation of targets in both the Nogal andDharoor valleys. Range is confident that a successful outcome will be reachedand that at least 2 wells will be drilled during the 2009/2010 financial year.In addition to the onshore activity of our joint venture partner, Range hasprogressed significantly in creating the first comprehensive oil and gasexploration database on all of offshore Puntland, collating, reviewing andinterpreting over 40 years worth of material including historical well reportsand seismic lines. The database was presented to the new government andnegotiations are continuing with regards to formalising production sharingagreements to enable the Puntland Government, Range and potential joint venturepartners to commence an offshore seismic programme.
Georgia and Texas
The Board is pleased to report that in addition to the Puntland projects, theCompany has also obtained working interests in the Republic of Georgia (50%farm-in into 2 strategic blocks - 7,000km2 area) and Texas, USA (25% interest -1,280 acres in a prolific oil and gas producing trend - currently drilling withtarget depth expected first week of October 2009 after release of this letter).
Both opportunities were undertaken to strengthen Range's oil and gas portfolio and provide the foundations for significant growth over the coming years. A review of these projects is provided in the Director's Report of this document.
Moving Forward
Range management was strengthened significantly during the year with theaddition of Mark Patterson and Greg Smith. Together with the existing Board(who I thank for all their efforts), Range is still on the cusp of achievingsomething unique but is under no illusions of the continued difficulties thatneed to be overcome in order to succeed. The number one priority of the Companyis to ensure and assist (in any way it can) with the drilling of the first onshore well in Puntland in over 17 years.
Most important of all, I would like to thank all shareholders for their continued support and patience in what I, and the rest of the Board acknowledge, as being an incredibly frustrating journey but one which still offers significant investment upside during the year ahead.
Peter LandauExecutive Director INCOME STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 Note Consolidated Parent Entity 2009 2008 2009 2008 $ $ $ $ Revenue from continuing 3 155,016 501,452 155,016 501,452operations Other income 3 27,147 10,743 27,147 10,743 Finance costs 4 (8,441) (8,960) (8,250) (8,770) Depreciation expense 4 (40,964) (48,020) (40,964) (48,020) Directors fees 6 (494,868) (1,031,958) (494,868) (1,031,958)
Directors remuneration 6 (324,869) - (324,869)
-
Directors share based 4&6 (50,000) (4,713,914) (50,000) (4,713,914)payment Corporate management (388,000) (854,359) (388,000) (854,359)services Consultants (1,612,772) (204,545) (1,612,772) (204,545) Foreign exchange loss - (612,759) -
(612,759)
Marketing and public (124,477) (275,833) (124,477) (275,833)relations Costs associated with (152,422) (40,755) (152,422) (40,755)AIM listing Travel expenditure (293,447) (361,712) (293,447) (361,712) Write down of available (2,552,750) (2,893,450) (1,244,000) (2,893,450)for sale assets Other expenses 4 (1,522,219) (1,001,663) (1,521,729) (1,820,463) (Loss) before income tax (7,383,066) (11,535,733) (6,073,635) (12,354,343) Income tax expense 5 - - - - (Loss) from continuing (7,383,066) (11,535,733) (6,073,635) (12,354,343)operations (Loss) from discontinued 8 (1,140,132) (1,803,740) (1,583,313) (1,803,740)operations (Loss) attributable to (8,523,198) (13,339,473) (7,656,948) (14,158,083)members of the parent entity Overall operations
EPS from continuing operations:
Basic loss per share 9 3.34 6.40 (cents per share) Diluted loss per share n/a n/a (cents per share)
EPS from discontinued operations:
Basic loss per share 9 0.52 1.00 (cents per share) Diluted loss per share n/a n/a (cents per share)
The Company's potential ordinary shares were not considered dilutive (refer Note 9). Please refer to ASX website for full Annual Report including Directors Report and Notes to the Financial Statements. BALANCE SHEETS AS AT 30 JUNE 2009 Note Consolidated Parent Entity 2009 2008 2009 2008 $ $ $ $ ASSETS CURRENT ASSETS Cash and cash 10 416,417 4,137,360 376,189 4,097,097equivalents Trade and other 11 42,451 1,441,220 42,451 1,441,220receivables Other current assets 12 52,225 108,932 52,225 108,932 TOTAL CURRENT ASSETS 511,093 5,687,512 470,865 5,647,249 NON-CURRENT ASSETS Trade and other 11 - - 231,478 781,535receivables Financial assets 13 1,191,689 2,004,561 1,000,439 1,370,811available for sale Property, plant and 15 49,779 288,119 49,779 288,119equipment Exploration & 16 79,888,841 77,120,784 79,888,841 77,013,262Evaluation Expenditure TOTAL NON-CURRENT 81,130,309 79,413,464 81,170,537 79,453,727ASSETS TOTAL ASSETS 81,641,402 85,100,976 81,641,402 85,100,976 CURRENT LIABILITIES Trade and other 17 770,027 815,190 770,027 815,190payables TOTAL LIABILITIES 770,027 815,190 770,027 815,190 NET ASSETS 80,871,375 84,285,786 80,871,375 84,285,786 EQUITY Contributed equity 18 104,063,285 101,619,057 104,063,285 101,619,057 Reserves 19 12,279,180 11,014,714 12,279,180 11,880,964 Accumulated losses (35,471,090) (28,347,985) (35,471,090) (29,214,235) TOTAL EQUITY 80,871,375 84,285,786 80,871,375 84,285,786
Please refer to ASX website for full
Annual Report including Directors Report and Notes to the Financial Statements. STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2009
Economic Entity Note Issued Share-based Option Available Accumulated Total Equity
Capital Payment Premium for Sale Losses Reserve Reserve Investment Revaluation Reserve $ $ $ $ $ $ Balance at 1 July 70,866,367 931,939 10,043,543 -
(24,002,303) 57,839,5462007 Revaluation in - - - (835,439) - (835,439)investments Transferred to 19(b) - - (8,967,406) - 8,967,406 -accumulated losses Total income and - - (8,967,406) (835,439) 8,967,406 (835,439) expense recognised directly in equity Loss attributable - - - - (13,339,473) (13,339,473)to members of the company Total recognised - - (8,967,406) (835,439) (4,372,067) (14,174,912)income and expense for the year Issue of share 18(a) 31,864,370 - - - - 31,864,370capital Exercise of options 18(a) 23,283 - - - - 23,283 Share issue costs (1,108,578) - - - - (1,108,578) Reduction in partly 18(b) (26,385) - - - 26,385 -paid shares Cost of share-based 19(b) - - 9,842,077 - - 9,842,077payment Balance at 30 June 101,619,057 931,939 10,918,214 (835,439) (28,347,985) 84,285,7862008 Revaluation in - - - 835,439 - 835,439investments Transferred to 19 - (762,854) (637,239) - 1,400,093 -accumulated losses Total income and - (762,854) (637,239) 835,439 1,400,093 835,439expense recognised directly in equity Loss attributable - - - - (8,523,198) (8,523,198)to members of the company Total recognised - (762,854) (637,239) 835,439 (7,123,105) (7,687,759)income and expense for the year Issue of share 18(a) 955,000 - - - - 955,000capital Exercise of options 18(a) 1,585,237 - - - - 1,585,237 Issue costs 19(b) (96,009) - (39,351) - - (135,360) Issue of options 19(b) - - 1,569,787 - - 1,569,787 Cost of share-based 24 - 298,684 - - - 298,684payment Balance at 30 June 104,063,285 467,769 11,811,411 - (35,471,090) 80,871,3752009 Please refer to ASX website for full Annual Report including Directors Report and Notes to the Financial Statements. STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2009
Parent Entity Note Issued Share-based Option Available Accumulated Total Equity
Capital Payment Premium for Sale Losses Reserve Reserve Investment Revaluation Reserve $ $ $ $ $ $ Balance at 1 July 70,866,367 931,939 10,043,543 -
(24,049,943) 57,791,9062007 Revaluation in - - - 30,811 - 30,811investments Transferred to 19(a) - - (8,967,406) - 8,967,406 -accumulated losses Total income and - - (8,967,406) 30,811 8,967,406 30,811 expense recognised directly in equity Loss attributable - - - - (14,158,083) (14,158,083)to members of the company Total recognised - - (8,967,406) 30,811 (5,190,677) (14,127,272)income and expense for the year Issue of share 18(a) 31,864,370 - - - - 31,864,370capital Exercise of 18(a) 23,283 - - - - 23,283options Share issue costs (1,108,578) - - - - (1,108,578) Reduction in 18(b) (26,385) - - - 26,385 -partly paid shares Cost of - - 9,842,077 - - 9,842,077share-based payment Balance at 30 June 101,619,057 931,939 10,918,214 30,811 (29,214,235) 84,285,7862008 Revaluation in - - - (30,811) - (30,811)investments Transferred to 19 - (762,854) (637,239) - 1,400,093 -accumulated losses Total income and - (762,854) (637,239) (30,811) 1,400,093 (30,811)expense recognised directly in equity Loss attributable - - - - (7,656,948) (7,656,948)to members of the company Total recognised - (762,854) (637,239) (30,811) (6,256,855) (7,687,759)income and expense for the year Issue of share 18(a) 955,000 - - - - 955,000capital Exercise of 18(a) 1,585,237 - - - - 1,585,237options Issue costs 19(b) (96,009) - (39,351) - - (135,360) Issue of options 19(b) - - 1,569,787 - - 1,569,787 Cost of 24 - 298,684 - - - 298,684share-based payment Balance at 30 June 104,063,285 467,769 11,811,411 - (35,471,090) 80,871,3752009 Please refer to ASX website for full Annual Report icluding Directors Report and Notes to the Financial Statements. CASH FLOW STATEMENTS FOR YEAR ENDED 30 JUNE 2009 Note Economic Entity Parent Entity 2009 2008 2009 2008 $ $ $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers - 12,789 - 12,790 Payments to suppliers and (2,411,819) (3,643,295) (2,411,081) (3,285,736)employees Interest received 56,484 458,117 56,484 458,117 Interest & other finance (2,860) - (2,860) -costs Net cash outflow from 23 (2,358,195) (3,172,389) (2,357,457) (2,814,829)operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payment for property, plant (168,420) (240,526) (168,420) (240,526)& equipment Payment for acquisition of - (12,280,487) - (12,280,487)Somalian rights Payment for investments - (1,500,000) - - Payments for exploration (3,974,922) (9,112,426) (3,806,980) (9,366,407)and evaluation Loans - other entities - (1,127,396) - (1,127,396) Loans to controlled - - (168,645) (1,603,378)entities Net cash outflow from (4,143,342) (24,260,835) (4,144,045) (24,618,193)investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of 2,915,955 9,110,778 2,915,955 9,110,778equity Payment of equity issue (135,361) (435,125) (135,361) (435,125)costs Loans to related entities - (1,553) - (1,553) Net cash inflow from 2,780,594 8,674,100 2,780,594 8,674,100financing activities Net (decrease)/ increase in (3,720,943) (18,759,124) (3,720,908) (18,758,922)cash and cash equivalents Cash and cash equivalents 4,137,360 22,896,484 4,097,097 22,856,019at beginning of financial year Cash and cash equivalents 10 416,417 4,137,360 376,189 4,097,097at end of financial year Please refer to ASX website for full
Annual Report including Directors Report and Notes to the Financial Statements.
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