17 Mar 2009 07:00
RANGE RESOURCES LIMITED ABN 88 002 522 009 HALF-YEARLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2008 RANGE RESOURCES LIMITED ABN 88 002 522 009 CONTENTS Directors' Report .......................................................2-4Auditors' Declaration of Independence .....................................5Income Statement ..........................................................6Balance Sheet .............................................................7Statement of Changes in Equity ............................................8Cash Flow Statement .......................................................9
Notes to and Forming Part of the Financial Statements .................10-17
Directors' Declaration ...................................................18Independent Review Report to the Members .................................19 CORPORATE DIRECTORY DirectorsSam Jonah - Non Executive ChairmanPeter Landau - Executive DirectorMarcus Edwards-Jones - Non Executive DirectorCompany SecretaryPeter LandauRegistered OfficeLevel 3, 1 Havelock StreetWest Perth, WA 6005Tel: (08) 9488 5220Fax: (08) 9324 2400Principal Place of BusinessLevel 3, 1 Havelock StreetWest Perth, WA 6005Tel: (08) 9488 5220Fax: (08) 9324 2400Websitewww.rangeresources.com.auCountry of IncorporationRange Resources Limited is domiciledand incorporated in Australia
Auditors
BDO Kendalls Audit & Assurance (WA) Pty Ltd128 Hay StreetSubiaco, WA 6008Tel: (08) 9380 8400Fax: (08) 9380 8499Share RegistryComputershare Investor Services Pty LtdLevel 2, Reserve Bank Building45 St Georges TerracePerth, WA 6000Tel: (08) 9323 2000Fax: (08) 9323 2033Home Stock ExchangeAustralian Stock Exchange LimitedLevel 2Exchange Plaza2 The EsplanadePerth, WA 6000ASX Code: RRSAIM Code: RRL RANGE RESOURCES LIMITED ABN 88 002 522 009 DIRECTORS' REPORT
Your directors submit the consolidated financial report of Range Resources Limited for the half-year ended 31 December 2008.
1. Directors
The names of the Directors who held office during or since the end of thehalf-year:Sam Jonah Non Executive ChairmanPeter Landau Executive DirectorMarcus Edwards-Jones Non Executive DirectorMichael Povey Non-Executive Director Resigned 29 October 2008Liban Bogor Non Executive Director Resigned 22 July 20082. Results
The Consolidated entity incurred an operating loss after income tax of $5,590,456 (December 2007: $8,276,082) for the half-year ended 31 December 2008.
3. Review of Operations
In October 2008 a new management team was appointed. Range was pleased toannounce that Mr Mark Patterson will lead the new management team and with over25 years experience in the oil and gas industry the Board believes he is avaluable asset to the Company. Mr Greg Smith and Mr Pawan Sharma also joinedRange as consultants working closely with Mr Patterson who will take up a Boardposition in early 2009.Range considers these appointments a strong indication of its commitment to thedevelopment of its oil and gas areas in the Puntland State of Somalia. Rangebelieves that the collective expertise of the new management team, togetherwith that of the existing Directors, will provide the Company with theleadership it requires going forward and, particularly, in the developmentphase of the Puntland project.
As part of the changes to the Board of Directors, Mr Michael Povey and Mr Liban Bogor have stepped down as Directors of Range.
Exploration - Dharoor
The Company's joint venture partner, Africa Oil, completed its 2D seismic programme in Puntland's Dharoor Valley. A total of 782 km of good quality vibroseis data, comprising a grid of 15 lines were recorded.
Africa Oil is currently processing the new survey and combining the resultswith 555 km of older seismic data previously acquired. Mapping of this combinedsurvey is scheduled to commence in early 2009 and drilling locations will beselected before the end of the first quarter 2009. A more definite timetablefor rig mobilisation and drilling will be announced as drilling locations arefinalised by the end of the first quarter 2009.Range notes that the current world financial crisis combined with recent lowoil prices has meant that rig availability has increased significantly whilebudgeted drilling costs have decreased significantly, thereby providing AfricaOil greater flexibility in finalising its programme.
The Company has commenced contributions to the expenditure programme on the Dharoor Valley (subject to finalisation of cost allocation under the joint operating agreement with Africa Oil). It should be noted that Africa Oil's expenditure to date includes a rig mobilization fee and purchase and delivery of inventory (mainly well heads and casing) sufficient for 4 wells.
RANGE RESOURCES LIMITED ABN 88 002 522 009 DIRECTORS' REPORT (cont'd) Offshore Programme
Work is underway to compile and review previously collected seismic data inorder to design a new 2D seismic acquisition programme for Puntland's offshoreoil and gas areas. Discussions regarding possible joint ventures with thirdparties are expected to be finalised first quarter 2009. The key point to noteis that, in line with the world economic situation referred to above, theproposed costs of any proposed offshore programme have reduced significantlyand, to this end, the Company is looking at alternative operators in additionto renegotiating the current offer from the Chinese geophysical group. TheCompany (with the input of its new management team) believes that one or morejoint ventures with industry partners in offshore Puntland would allow theCompany to explore while reducing exposure to exploratory risk and significantcapital expenditures.Political SituationAs announced on 13 January 2009 following a democratic regional election heldin Puntland, Somalia where the Company holds oil and gas assets, Dr. AbdirahmanMohamed "Farole," was appointed the fourth President of Puntland. Dr. Farole,63, won in the third round of voting by the 66-seat Puntland Parliament, whichessentially functions as the region's Electoral College.Range believes the open and peaceful nature of the election of its President,His Excellency Dr Farole highlights the strong wish of the Puntland people forsecurity and democracy to be maintained and enhanced in the region.During the official crowning ceremony in Garowe, His Excellency Dr Farole gavespecial thanks to the outgoing President Hersi for the smooth transition ofpower and declared that former President Hersi will become the Government'sspecial advisor on development issues. The appointment of former PresidentHersi will greatly assist Range as it seeks to establish a good workingrelationship with the new Government in dealing with offshore development andkey areas of mineral interest.
In early February 2009 a Presidential policy update of the new Puntland Government was presented to the Puntland Parliament.
This policy update covered many areas of interest to the Puntland region, but of particular interest to Range was the following statement:
"As you all know there are agreements signed by the former government thatraised complaints from various groups. These contracts were between thegovernment, foreign and local companies. In principle, I recognise and acceptthese agreements, but we have to update ourselves and make sure that they arebenefiting the people and are within the laws of Puntland."
Range looks forward to establishing a constructive and mutually beneficial relationship with the new Puntland Government and its President, His Excellency, Dr. Abdirahman Mohamed Farole.
RANGE RESOURCES LIMITED ABN 88 002 522 009 DIRECTORS' REPORT (cont'd) Mineral ExplorationDuring the half-year, the Company significantly scaled down its expendituresregarding the Western Australian tenements. The tenements are to be divested toex Director, Michael Povey in a sale agreement reached as part of hissettlement arrangements. Moving forward, the exercise will save the Companyapproximately $1,200,000 per annum.
4. Events Subsequent to Reporting Date
* The Company successfully completed its fully subscribed non renounceable
rights issue raising $1.5m. 104,652,472 unlisted options exercisable at 1.5
cents and 26,163,118 free attaching listed options exercisable at 5 cents
were issued.
* The Company settled an outstanding loan of $1.5m owed by a debt/equity swap
and will acquire equity in a UK based Company that has interests in a Uranium Project in Kyrgyzstan. * A Deed of Settlement and Release between the Company and ex Director,
Michael Povey, was finalised. The key terms of the settlement are a cash
component of $100k, the issue of 1,666,666 shares and divesting the
portfolio of Western Australian tenements in a sale agreement.
5. Auditors Independence Declaration
The Lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 5 for the half-year ended 31 December 2008.
This report is made in accordance with a resolution of the Board of Directors.
Peter LandauExecutive DirectorDated this 16th day of March 2009BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay StreetSUBIACO WA 6008PO Box 700WEST PERTH WA 6872Phone 61 8 9380 8400Fax 61 8 9380 8499aa.perth@bdo.com.auwww.bdo.com.auABN 79 112 28 84 78716 March 2009The DirectorsRange Resources LimitedLevel 3, 1 Havelock StreetWEST PERTH WA 6008Dear Sirs
DECLARATION OF INDEPENDENCE BY BRAD McVEIGH TO THE DIRECTORS OF RANGE RESOURCES LIMITED
As lead auditor of Range Resources Limited for the half year ended 31 December2008, I declare that to the best of my knowledge and belief, there have been nocontraventions of: * the auditor independence requirements of the Corporations Act 2001 in relation to the review; and * any applicable code of professional conduct in relation to the review.
This declaration is in respect of Range Resources Limited and the entities it controlled during the period.
Brad McVeighDirectorBDO Kendalls Audit & Assurance (WA) Pty LtdPerth, Western AustraliaBDO Kendalls is a national association of separate partnerships and entities RANGE RESOURCES LIMITED ABN 88 002 522 009 INCOME STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Consolidated 31 December 31 December Notes 2008 2007 $ $
Revenue from continuing operations
Interest Income 126,524 311,343Other Income 33,105 5,000
Expenses from continuing operations
Depreciation (41,734) (29,032)Administration expenses 2 (2,338,373) (6,258,208)Loss on disposal of subsidiaries 10 -
(1,426,448)
Loan forgiven -
(353,449)
Impairment on available for sale financial assets (2,609,105)
-Foreign exchange gain/(loss) 428,950 (525,204) Loss before income tax expense from continuing operations 2 (4,400,633) (8,275,998) Income tax expense - -
Loss after tax from continuing operations (4,400,633) (8,275,998)
Loss from discontinued operations 10 (1,189,823)
(84) Net loss for the period (5,590,456) (8,276,082) Net loss attributable to members of the (5,590,456) (8,276,082)economic entity Continuing Operations; Basic loss per share (cents per share) (2.20)
(4.98)
Diluted loss per share (cents per share) N/A N/A Discontinued operations Basic loss per share (cents per share) (0.59)
(0.00)
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.
The accompanying notes form part of this financial report.
RANGE RESOURCES LIMITED ABN 88 002 522 009 BALANCE SHEET AS AT 31 DECEMBER 2008 Consolidated 31 December 30 June 2008 2008 Notes $ $ Current Assets Cash and cash equivalents 256,654 4,137,360 Trade and other receivables 1,761,129 1,441,220 Other current assets 43,747 108,932 Total Current Assets 2,061,530 5,687,512 Non-Current Assets Property, plant & equipment 291,259 288,119 Financial assets available for sale 6 471,563 2,004,561 Exploration expenditure 7 78,468,214 77,120,784 Total Non-Current Assets 79,231,036 79,413,464 Total Assets 81,292,566 85,100,976 Current Liabilities Trade and other payables 1,213,179 815,190 Total Liabilities 1,213,179 815,190 Net Assets 80,079,387 84,285,786 Equity Issued capital 9 102,166,271 101,619,057 Reserves 11,214,318 11,014,714 Accumulated losses (33,301,202) (28,347,985) Total Equity 80,079,387 84,285,786
The accompanying notes form part of these financial statements.
RANGE RESOURCES LIMITED ABN 88 002 522 009 STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Ordinary Accumulated Available Share Total Shares Losses for Sale Based Investments Payment Reserve Reserve $ $ $ $ Balance at 1 July 2007 70,866,367 (24,002,303) - 10,975,482 57,839,546Loss attributable to members - (8,276,082) - - (8,276,082)of economic entity Total recognised income and - (8,276,082) - - (8,276,082)expense for the half-year Shares issued during the year 31,886,734 - - - 31,886,734Transaction costs (1,028,409) - - - (1,028,409)Transfers to and from reserves
- Options issued/expired - 8,967,406 - 725,582 9,692,988 Balance at 31 December 2007 101,724,692 (23,310,979) - 11,701,064 90,114,777
Balance at 1 July 2008 101,619,057 (28,347,985) (835,439) 11,850,153 84,285,786 Net movement in available for
- - 835,439 - 835,439sale investments reserve Loss attributable to members of - (5,590,456) - - (5,590,456)economic entity Total recognised income and - (5,590,456) 835,439
- (4,755,017)expense for the half-year
Shares issued during the year 555,000 - - - 555,000Transaction costs (7,786) - - - (7,786)Transfers to and from reserves
- Options expired - 637,239 - (637,239) -- Options issued - - - 1,404 1,404 Balance at 31 December 2008 102,166,271 (33,301,202) - 11,214,318 80,079,387
The accompanying notes form part of this financial report.
RANGE RESOURCES LIMITED ABN 88 002 522 009 CASH FLOW STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Consolidated 31 December 31 December 2008 2007 $ $
Cash Flows From Operating Activities Payments for exploration and evaluation (2,613,717) (1,659,311) Payments to suppliers and employees (1,052,165) (1,583,656)
Interest received 53,071 311,280 Other - 5,000
Net cash provided by/(used In) Operating (3,612,811) (2,926,687)
Activities
Cash Flows From Investing Activities Payments for plant and equipment (226,614) (49,154) Payments for exploration and development - (16,698,851) expenditure Payments for investments - (1,500,000) Loans to related entities (33,495) (8,587) Net cash provided by/(used In) Investing (260,109) (18,256,592)
Activities
Cash Flows From Financing Activities Proceeds from issues of shares - 8,423,963
Payment of share issue costs (7,786) (349,453)
Net cash provided by/(used in) Financing (7,786) 8,074,510
Activities
Net Increase/(Decrease) In Cash Held (3,880,706) (13,108,769)
Cash at beginning of period 4,137,360 22,896,484 Cash at end of period 256,654 9,787,715
The accompanying notes form part of these financial statements.
RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Note 1: Basis of Preparation
The half-year financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Accounting Standard AASB 134: Interim Financial Reporting.
It is recommended that this financial report be read in conjunction with thefinancial report for the year ended 30 June 2008 and any public announcementsmade by Range Resources Limited during the half-year in accordance withcontinuous disclosure requirements arising under the Corporations Act 2001.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
a) Exploration and Evaluation Expenditure
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.
b) Discontinued Operations
A discontinued operation is a component of the entity that has been disposed ofor is classified as held for sale and that represents a separate major line ofbusiness or geographical area of operations, is part of a single co-ordinatedplan to dispose of such a line of business or area of operations, or is asubsidiary separately on the face of the income statement.
c) Going Concern
At 31 December 2008, the consolidated entity had a cash balance of $256,654 andhad incurred net cash used in operating activities of $3,612,811 during thehalf-year ended 31 December 2008. The accounts have been prepared on the basisthat the entity can meet it's commitments as and when they fall due and cantherefore continue normal business activities, and the realisation of assetsand liabilities in the ordinary course of business.The ability of the company to continue as a going concern is dependant upon theCompany raising funding for future activities through the issue of equity ordebt and obtaining and providing continued funding for its oil and gasprograms. The Directors consider that there are reasonable grounds to believethat the Company will continue to raise equity and/or debt to meet its short tomedium term funding requirements. RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Consolidated 31 December 31 December Notes 2008 2007 $ $
Note 2. Loss for the half-year
The following significant revenue and expense items are relevant in explaining the financial performance for the interim period: Consulting Fees 553,999
554,975
Equity Based Payment - Directors 9 -
4,713,914
Equity Based Payment - Consultants 556,404 - Directors Fees 306,537 330,998 Settlement Expense 135,596 - Public Relations Expense 102,515 105,077 Travel Expenses 127,947 92,407 Other expenses 555,375 460,837
Note 3. Events Subsequent To Reporting Date
* The Company successfully completed its fully subscribed non renounceable
rights issue raising $1.5m. 104,652,472 unlisted options exercisable at 1.5
cents and 26,163,118 free attaching listed options exercisable at 5 cents
were issued.
* The Company settled an outstanding loan owed by a debt/equity swap and will
acquire equity in a UK based Company that has interests in a Uranium Project in Kyrgyzstan. * A Deed of Settlement and Release between the Company and ex Director,
Michael Povey, was finalised. The key terms of the settlement are a cash
component of $100k, the issue of 1,666,666 shares and divesting the
portfolio of Western Australian tenements in a sale agreement.
Note 4. Contingent Liabilities As detailed in the 30 June 2007 Annual Report, the Company completed theacquisition of the remaining 49.9% of the Puntland Rights from Consort PrivateLimited in May 2007. Under the terms of the Agreement, Range must issue afurther 45 million shares and 11.25 million unlisted options ($1.00, 01 October2010) to Consort upon completion of the first hydrocarbon well drilled inPuntland.
In addition upon completion of the first 4 hydrocarbon wells drilled in Puntland, the Company must pay $US20 million to Consort.
Consort are also entitled to received a 2.5% net royalty on any Puntland projects derived in respect of Range's interest.
During the year ended 30 June 2008, the Company settled a transaction regardingthe disposal of subsidiaries with operations in Peru (as disclosed in note 10).Range Resources has received conflicting advice from local advisors as towhether any tax liability arises in Peru from this transaction and we aretherefore unable at this stage to quantify any such liability if it in factexists.The Directors are not aware of any other contingent liabilities as at 31stDecember 2008. RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Note 5. Segment Information Primary Segment - Geographical The consolidated entity operates in two geographical segments being Australia and Somalia and one industry segment, that of mineral exploration. Geographical Australia Somalia Unallocated Consolidated Segments $ $ $ 31 December 2008 Revenue Interest Revenue - - 126,524 126,524 Other Revenue - - 33,105 33,105 Results Segment Results (1,031,080) (808,976) (3,750,400) (5,590,456) 31 December 2007 Revenue Interest Revenue - - 311,343 311,343 Other Revenue - - 5,000 5,000 Results Segment Results - - (8,276,082) (8,276,082) Consolidated Notes 31 December 30 June 2008 2008 $ $
Note 6. Financial assets available for sale
Listed investments, at fair value - Interest in other corporations 471,563
2,004,561
Total available for sale financial assets 471,563 2,004,561
Available for sale financial assets comprise investments in the
ordinary share capital of various entities. There are no fixed returns
or fixed maturity date attached to these investments. They have been assessed as impaired during the period resulting in the change to the income statement. No assets have been pledged as security. RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Consolidated 31 December 30 June Notes 2008 2008 $ $
Note 7. Exploration & Evaluation Expenditure Opening net book amount 77,120,784
84,026,028
Reduction in value of securities issued -
(11,119,608)
Additions - exploration 2,537,253
9,526,238
Tenements relinquished/sold -
(5,311,874)
Projects written off (158,743) - Tenements transferred to "Held for Sale" 8 (1,031,080) - Closing net book amount 78,468,214
77,120,784
The recoverability of the carrying amount of exploration assets is dependent on the successful development and commercial exploitation or sale of the respective mining permits. Amortisation of the costs
carried forward for the development phase is not being charged pending
the commencement of production. Capitalised costs amounting to $2,613,717 (2008: $1,659,311) have been included in cash flows from operating activities in the cash flow statement.
Note 8. Non Current Assets Classified as
Held for Sale Opening balance - - Transferred from exploration and 7 1,031,080 - evaluation expenditure Less Provision for loss (1,031,080) - Closing balance - - Reconciliation to income statement charge Exploration and evaluation expenditure Projects written off (158,743) - Loss recognised on assets held for sale (1,031,080) - Impairment of capitalised exploration (1,189,823) - expenditure in income statement
Exploration expenditure relating to the WA Tenements was re-classified
as "Held for sale" due to the company's intention to sell or farm out its interests in the project. The carrying value has been fully
provided for due to a settlement agreement with ex-Director, Mr Michael
Povey, in which these tenements are to be divested to him. As part of the settlement, Range will retain a royalty interest of 2%. RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Note 9. Contributed Equity 31 December 30 June Notes 2008 2008 $ $ Issued share capital
209,304,943 (June 2008: 194,304,943) ordinary 110,144,342 109,589,342 shares, fully paid.
4,925,000 (June 2008: 4,925,000) partly paid 1,732,615 1,732,615 shares Share issue costs (9,710,686) (9,702,900) 102,166,271 101,619,057
Movements in issued share capital: Balance at the beginning of the period 101,619,057 70,866,367 Shares issued through placements - 8,700,456 Shares converted from options - 23,283 Shares issued as consideration for Puntland rights - 18,450,000 Shares issued to New Management Team 555,000 - Shares issued to Directors 2 - 4,713,914 Partly paid shares reduced during period - (26,385) Less cost of share issue (7,786) (1,108,578) Balance at the end of the period 102,166,271 101,619,057 No. of Shares No. of Shares Balance at the beginning of the period 199,229,943 143,967,635 Ordinary shares issued during the period 15,000,000 55,337,308 Reduction in partly paid shares -
(75,000)
Balance at the end of the period 214,229,943
199,229,943
On 30 June 2007, the Company issued 1,175,000 of the previously approved 1,250,000 Partly Paid shares to Consultants, however, due to error, incorrectlyrecorded the full 1,250,000 shares being issued in its accounts. The balance of75,000 Partly Paid shares were never issued as the consultant to which they were intended to be issued, subsequently ceased providing services to the Company. Accordingly, the reduction in Partly Paid shares during the comparative period is to rectify this accounting error. During the year ended June 2007, 3,750,000 Partly Paid shares, previously approved by shareholders, were allotted and issued to directors at an issue
price of $0.60 each and were deemed to have been paid up to $0.30 each, leaving $0.30 payable by the holder within 13 months of the date of issue.
On 26 September 2008, the Board resolved, in accordance with clause 32.9 of theCompany's constitution that the shares be forfeited and that payment will not be enforced with regards to the unpaid balance. The Board intents to will take appropriate action to effect the cancellation of the Partly Paid shares.
RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008
Note 9. Contributed Equity (continued)
Options:
The Company has on issue 68,078,215 (June 2008:127,078,036) options over un-issued capital in the Company.
31 December 2008 30 June 2008 Number of Number of Options Options Movements in Options: Balance at the beginning of the period 127,077,116 118,206,584 Options issued during the period 4,725,000 8,871,452 Options exercised during the period -
(920) Options expired (63,723,901) - Balance at the end of the period 68,078,215
127,077,116
Terms and Conditions of Contributed Equity
Ordinary shares have the right to receive dividends and, in the event of winding-up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company
Note 10. Discontinued Operations
a. Yono and Somirelco
On 29 September 2006 the Company announced it had entered a final agreement with Contact Uranium Limited ("Contact"), now known as Ram Resources Limited, to dispose of its 80% holding in the Corachapi Uranium Project. Under the termsof the agreement Range would divest its 80% share in Sociedad Minera de Responsabilidad Limitada Corachapi ("Somirelco") and its 100% share of Yono Nominees Pty Ltd ("Yono") in return for a non-refundable cash deposit of $250,000 payable immediately and 8 million Contact shares. On 28 November 2007 the final tranche of Contact shares were paid completing the transaction.
Financial information relating to the discontinued operations for the period to the date of disposal is set out below.
b. WA tenements
The tenements are to be divested to ex Director, Michael Povey in a sale
agreement reached as part of his settlement arrangements. The carrying value has been fully provided for in the accounts, refer note 8. As per the
settlement agreement, the tenements are to be divested to him and Range will retain a royalty interest of 2%.
RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Note 10. Discontinued Operations (continued)
c) Financial performance The financial performance for Somirelco and Yono presented are for the period ended 28 November 2007 (date of disposal) and 31 December 2008. Note Tenements Somirelco Yono 31 Dec 2008 31 Dec 2007 31 Dec 2008 28 Nov 2007 31 Dec 2008 28 Nov 2007 $ $ $ $ $ $ Revenue - - - - - - Expenses 8 (1,189,823) - - - - (84)
Loss before income (1,189,823) - - -
- (84) tax Income tax expense - - - - - -
Loss after income (1,189,823) - - - - (84) tax of discontinued operations Loss on sale of company - - - (257,913) - (1,168,451) before income tax Income tax expense - - - - - - Loss on sale of company - - - (257,913) - (1,168,451) after income tax Loss from (1,189,823) - - (257,913) - (1,168,535) discontinued operations
(d) Carrying amounts of assets and liabilities The carrying amounts of assets and liabilities for the Western Australian tenements as at 30 June 2008 and 31 December 2008. The carrying amounts of assets and liabilities for Somirelco and Yono as at 28 November 2007 and at 31 December 2008 are as set out below:
Tenements Somirelco Yono 31 Dec 2008 30 June 2008 31 Dec 2008 28 Nov 2007 31
Dec 2008 28 Nov 2007 $ $ $ $ $ $ Cash - - - 1 - 10 Exploration and - 647,129 - 1,245,762 - 4,054,125 evaluation Total assets - 647,129 - 1,245,763 - 4,054,135 Loan from parent - - - 351,836 - 1,614 company Total liabilities - - - 351,836 - 1,614 Net assets/(liabilities) - 647,129 - 893,927 - 4,052,521 RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 Note 10. Discontinued Operations (continued)
(d) Details of the sale of the 31 December 28 November
subsidiaries 2008 2007 $ Consideration received - 3,520,000
Carrying amount of net assets sold - (4,946,448) Loss on sale before income tax - (1,426,448) Income tax expense - - Loss on sale after income tax - (1,426,448) Note 11. Related Parties
Related party information remains unchanged since 30 June 2008 except as follows:-
* Resignation of Liban Bogor as Director * Resignation of Michael Povey as Director
* Participation in the Company's non-renounceable rights issue which occurred
from the 24 February to the 3 March 2009:- Sir Sam Jonah Indirectly 4,135,023 new options $0.015, 31 May 2009 1,033,753 attaching options $0.05, 31 December 2011 Peter Landau Indirectly 5,000,000 new options $0.015, 31 May 2009 1,250,000 attaching options $0.05, 31 December 2011 Marcus Edward-Jones Directly 300,000 new options $0.015, 31 May 2009 75,000 attaching options $0.05, 31 December 2011 RANGE RESOURCES LIMITED ABN 88 002 522 009 DIRECTORS DECLARATION
The Directors of the company declare that:
1) The financial statements and notes set out on pages 6 to 17:
(i) Give a true and fair view of the financial position of the Consolidated Entity as at 31 December 2008 and its performance for the half-year ended on that date, and
(ii) Comply with Accounting Standards AASB 134 "Interim Financial Reporting" and the Corporations Regulations 2001.
2) In the Directors' opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Board of Directors.
Peter LandauExecutive DirectorDated this 16th day of March 2009BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay StreetSUBIACO WA 6008PO Box 700WEST PERTH WA 6872Phone 61 8 9380 8400Fax 61 8 9380 8499aa.perth@bdo.com.auwww.bdo.com.auABN 79 112 28 84 787INDEPENDENT AUDITOR'S REVIEW REPORTTO THE MEMBERS OF RANGE RESOURCES LIMITED
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Range ResourcesLimited, which comprises the balance sheet as at 31 December 2008, and theincome statement, statement of changes in equity and cash flow statement forthe half-year ended on that date, a statement of accounting policies, otherselected explanatory notes and the directors' declaration of the consolidatedentity comprising the disclosing entity and the entities it controlled at thehalf-year end or from time to time during the half-year.
Directors' Responsibility for the Half-Year Financial Report
The directors of the disclosing entity are responsible for the preparation andfair presentation of the half-year financial report in accordance withAustralian Accounting Standards (including the Australian AccountingInterpretations) and the Corporations Act 2001. This responsibility includesestablishing and maintaining internal control relevant to the preparation andfair presentation of the half-year financial report that is free from materialmisstatement, whether due to fraud or error; selecting and applying appropriateaccounting policies; and making accounting estimates that are reasonable in
thecircumstances.Auditor's ResponsibilityOur responsibility is to express a conclusion on the half-year financial reportbased on our review. We conducted our review in accordance with AuditingStandard on Review Engagements ASRE 2410 Review of Interim and Other FinancialReports Performed by the Independent Auditor of the Entity, in order to statewhether, on the basis of the procedures described, we have become aware of anymatter that makes us believe that the financial report is not in accordancewith the Corporations Act 2001 including: giving a true and fair view of theconsolidated entity's financial position as at 31 December 2008 and itsperformance for the half-year ended on that date; and complying with AccountingStandard AASB 134 Interim Financial Reporting and the Corporations Regulations2001. As the auditor of Range Resources Limited, ASRE 2410 requires that wecomply with the ethical requirements relevant to the audit of the annualfinancial report.A review of a half-year financial report consists of making enquiries,primarily of persons responsible for financial and accounting matters, andapplying analytical and other review procedures. A review is substantially lessin scope than an audit conducted in accordance with Australian AuditingStandards and consequently does not enable us to obtain assurance that we wouldbecome aware of all significant matters that might be identified in an audit.Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Range Resources Limited is not in accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity's financial position
as at 31 December 2008 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting
and Corporations Regulations 2001.
Material Uncertainty Regarding Continuation as a Going Concern
Without qualifying our conclusion, we draw attention to the matters disclosedin Note 1(c). As a result of these matters, a significant uncertainty existsregarding continuation as a going concern. The company will have to seekadditional funding or complete the sale of assets if it is to continue itsactivities. If the company is unable to obtain additional funding or completethe sale of assets it may cast significant doubt about the company's ability tocontinue as a going concern and whether it will be able to realise its assetsand extinguish its liabilities, in the ordinary course of business, at thevalues carried in the financial statements.
Material Uncertainty Regarding Recoverability of Deferred Exploration and Evaluation Expenditure
Without qualifying our conclusion, we draw attention to the matter disclosed inNote 7. There is uncertainty as to the recoverability of the deferredexploration and evaluation expenditure assets of Range Resources Limited. Therecoverability of the deferred exploration and evaluation expenditure assets sis dependant upon the successful development and commercialisation of theunderlying areas of interest or their sale. Should the company be unable tosuccessfully develop, commercialise or sell the exploration assets, there issignificant doubt whether the company will be able to realise the asset at thevalues carried in the balance sheet.
BDO Kendalls Audit & Assurance (WA) Pty Ltd
Brad McVeighDirectorPerth, Western AustraliaDated this 16th day of March 2009
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