31 Jul 2008 14:28
Range Resources Ltd ("Range" or the "Company")
ABN 88 002 522 009
Note that a full formatted version of the quarterly report below, including photos, is available on Range's website at www.rangeresources.com.au or at www.asx.com.au.
Quarterly Report for Period Ending 30 June 2008
The Board is pleased to provide the following commentary to be read in conjunction with the quarterly cashflow report which is attached.
EXPLORATION UPDATE - Dharoor
Set out below (by way of summary) in italics is an extract from an announcement released by Africa Oil (Range's 80% joint venture partner in its two on shore Puntland oil and gas concessions) in July 2008.
Africa Oil Corp. ("Africa Oil" or "the Company") is pleased to announce that seismic recording in the Dharoor Valley of Puntland, Somalia commenced on July 9, 2008. The Company plans to acquire approximately 2600 kilometres of 2D vibroseis data on the Dharoor Block before drilling 2 wells in each of its two Puntland concessions.
In the Nogal Basin, Africa Oil has acquired all of the more than 4,000 kilometres of good quality 2D data which was recorded in the late 1980's.
The Company holds an 80% interest in the Nogal and Dharoor blocks. The concessions encompass two highly prospective hydrocarbon basins and cover an area of 81,000 square kilometres or more than 20 million acres.
The two sedimentary basins were contiguous with the prolific Marib and Masila basins in Yemen during the Jurassic and Cretaceous periods. Over 9 billion BOE have been discovered in Yemen but exploration has been limited to date in Somalia. Only 3 wells have been drilled in basinal settings in these concessions before operations ceased in the early 1990's. Those wells confirmed thick sedimentary sequences, encountered oil in Cretaceous sandstones and proved the presence of active petroleum systems in both basins.
Rick Schmitt, President and CEO of Africa Oil, commented, "We are very pleased with the progress made in our concessions and appreciate the excellent support received from both the Puntland Government and the Transitional Federal Government. Commencement of the seismic program has also reduced the logistical demands on our Puntland infrastructure and we are now working hard to reinstate the drilling program in order to commence drilling during 2008."
Photos of the seismic operation are set out on page 3. Discussions are continuing with the Puntland Government regarding the possibility of reinstating the proposed drilling in the Nogal Valley. Once any drilling decisions are made by Africa Oil regarding the Dharoor or Nogal Valley, shareholders will be updated immediately.
Offshore acreage
Range is continuing negotiations with regards to the completion of a 15,000km 2D line seismic programme funded by a proposed seismic operator and/or joint venture partners. The proposal involves a multi client tender for offshore blocks in Puntland in addition to priority rights to the joint venture partner.
Mineral Exploration
The Company has secured its own exploration drill rig suitable for rugged and remote conditions. The rig will be used first in the Company's tenements in Western Australia. These tenements have the potential for gold and nickel mineralization and have been reviewed and rationalized over the last year. The drilling will assist with the realisation strategy of the tenements during the coming quarter. The Puntland targets and logistics will be further reviewed and, after testing, the rig will be available to be moved to Puntland.
Seismic Operations
Senior Africa Oil official Ken Watson told Reuters on the site at Dharoor as dozens of the engineers from the US, Europe and Africa were busy setting up shop ... `The exploration will run until December when we hope to start drilling for oil. We have heavy equipment to conduct a 2,500sq km seismic survey. A hundred local people have been employed in the operation.'
Reuters , 21 May 2008
Management
Mr. Michael Povey has moved to a Non Executive position and is responsible for managing the strategy to realise value from the Company's significant West Australian tenement portfolio. The Board has commenced an executive search for a new Managing Director with suitable international (frontier) oil and gas experience. In the interim, Executive Director Peter Landau will manage the Company's corporate and Puntland operations. Assisting Mr Landau in Australia will be Mr Robert Hyndes who has a management consulting and corporate finance background and company secretary, Ms Susan Hunter.
Mr. Liban Bogor resigned as a Director of the Company on 22 July 2008 to work exclusively for the Puntland Government on various initiatives. Mr Bogor's move was done in consultation with Range and the Government and is seen as a positive taking into account all stakeholder interests in Puntland.
Contacts:AustraliaRange Resources Ltd.Robert Hyndes+61.8.9324.8513robert@hyndes.comUKRange Resources Ltd.Peter Landau+44.207.389.8191
p.landau@rangeresources.com.au
RFC Corporate Finance(Nominated Advisor)Stuart Laing+61.8.9.480.2500Fox-Davies Capital(Broker)Daniel Fox-Davies+44.207.936.5200
Mining exploration entity quarterly report
Name of entity RANGE RESOURCES LIMITED ABN Quarter ended ("current quarter") 88 002 522 009 30 JUNE 2008
Consolidated statement of cash flows
Cash flows related to operating Current quarter Year to dateactivities (12 months) $A'000 $A'000 1.1 Receipts from product sales and related debtors 1.2 Payments for (376) (2,937) (a) exploration and evaluation (897) (3,564) (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a 54 458 similar nature received 1.5 Interest and other costs of finance - - paid 1.6 Income taxes paid - - 1.7 Other (provide details if material) 3 8 Net Operating Cash Flows (1,216) (6,035) Cash flows related to investing activities 1.8 Payment for purchases of: - (1,500) (a) prospects (82) (140) (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities - (1,142) 1.11 Loans repaid by other entities - 12 1.12 Other (provide details if material) - (18,662) Net investing cash flows (82) (21,432) 1.13 Total operating and investing cash (1,298) (27,467) flows (carried forward) 1.13 Total operating and investing cash (1,298) (27,467) flows (brought forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, - 9,144 options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Costs associated with issue of (4) (435) shares Net financing cash flows (4) 8,709 Net increase (decrease) in cash (1,302) (18,758) held 1.20 Cash at beginning of quarter/year 5,440 22,896 to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter 4,138 4,138
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the relatedentities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included 407 in item 1.2 1.24 Aggregate amount of loans to the parties included in Nil item 1.10 1.25 Explanation necessary for an understanding of the transactions Payments of Directors Fees $156k Payments for Financial/Company Secretarial/Office Support Services $241k Superannuation $4k Travel Costs $6k
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used $A'000 $A'000 3.1 Loan facilities 3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A'000 4.1 Exploration and evaluation $1,100 4.2 Development Total Reconciliation of cash
Reconciliation of cash at the end of the Current quarter Previous quarter quarter (as shown in the consolidated
statement of cash flows) to the related $A'000 $A'000items in the accounts is as follows. 5.1 Cash on hand and at bank 686 1,396 5.2 Deposits at call 3,452 4,044 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 4,138 5,440 1.22)
Changes in interests in mining tenements
Tenement Nature of interest Interest Interest reference at at end of (note (2)) beginning quarter of quarter 6.1 Interests in mining E77/1266 Nil tenements relinquished, reduced or lapsed 6.2 Interests in mining Nil tenements acquired or increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price Amount paid up per security per security (see note 3) (see note 3) (cents) (cents) 7.1 Preference Nil +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.3 +Ordinary 194,304,024 194,304,024 securities 7.4 Changes Nil Nil during quarter Nil Nil (a) Increases through issues (b) Decreases through returns of capital, buy-backs 7.5 +Convertible Nil debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options 63,723,930 - Exercise price Expiry date (description and 60,402,077 60,402,077 $1.00 1 October 2008 conversion factor) 2,952,029 - $1.00 1 October 2010 $0.50 30 June 2012 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) Partly Paid 1,250,000* Nil 60 cents 30 cents * Application was made to ASX to have 3,750,000 Partly Paid Shares converted to fully paids on 27 December 2007. Following discrepancies with the conversion process, shareholder ratification will be sought to have the Directors' exercise the partly paid shares.
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement doesgive a true and fair view of the matters disclosed.
Sign here: Date: 31 July 2008Print name: Peter LandauExecutive DirectorNotes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with
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