21 Jan 2010 10:59
21 January 2010
Companies Announcement OfficeAustralian Stock Exchange Limited20 Bond StreetSYDNEY NSW 2000Via E-lodgementLETTER TO SHAREHOLDERS
Please find attached letter as dispatched to shareholders.
DI holders on AIM register will receive a similar letter with appropriate instructions from Computershare UK.
For and on behalf of the board
PETER LANDAUExecutive DirectorFor further information please contact:Range ResourcesPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Conduit PRDavid Tasker Jonathan CharlesTel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7429 6666Em: david.tasker@ppr.com.au Em: jonathan@conduitpr.comRFC Corporate Finance (Nominated Advisor) Old Park Lane Capital PlcStuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 518 2603Range Background
Range Resources is a dual listed oil & gas exploration company with oil & gas interests in the frontier state of Puntland, Somalia, the Republic of Georgia and Texas, USA.
* In Puntland, Range holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys with plans to drill two wells - 65% Operator, in 2010. * In the Republic of Georgia, Range holds a 50% farm-in interest in onshore blocks VIa and VIb, covering approx. 7,000sq.km. Currently, Range is undertaking a 350km 2D seismic program. * Range holds a 25% interest in the North Chapman Ranch project, Texas. The project area encompasses approximately 1,680 acres in one of the most prolific oil and gas producing trends in the State of Texas. Drilling of the first well has resulted in a commercial discovery with production commencing Jan/Feb 2010. 21 January 2010Dear ShareholderNon-Renounceable Rights Issue
On 19 January 2010, Range Resources Ltd (the "Company") confirmed the details of a non-renounceable entitlement issue ("Rights Issue") to all of the Company's shareholders ("Shareholders") on the basis of 1 ordinary fully paid share ("New Share") for every 4 ordinary fully paid shares in the capital of the Company ("Shares") held as at 5:00pm (WDST) on 29 January 2010 (the "Record Date").
The subscription price for each New Share shall be 5 cents ($0.05).
Approximately $7,579,766 will be raised by the Rights Issue before expenses (based on the current capital structure of the Company). The Company has lodged a prospectus with the Australian Securities and Investments Commission in relation to the Rights Issue (Prospectus).
The maximum number of New Shares which may be issued under the Rights Issue is 151,595,332 New Shares. All of the New Shares issued will rank equally with the Shares on issue at the date of the Prospectus.
Any New Shares not taken up by Shareholders will form the shortfall ("Shortfall "). However, Shareholders should note that unless the Company has received commitments, to its satisfaction, for the entire Shortfall by the closing date for the Rights Issue, the Rights Issue will not proceed and no New Shares will be issued and the Company will return all application monies to Applicants in accordance with the Corporations Act.
No action has been taken to register or qualify the New Shares the subject of the Rights Issue or otherwise permit a public offering of the New Shares the subject of the Rights Issue in any jurisdiction outside Australia. It is the responsibility of applicants outside Australia to obtain all necessary approvals for the allotment and issue of the New Shares pursuant to the Prospectus.
The return of a completed Entitlement and Acceptance Form by an applicant with a registered address outside Australia will be taken by the Company to constitute a representation and warranty by the applicant that all applicable securities laws have been complied with and that any necessary advice and approvals have been obtained.
Following the completion of the Rights Issue, the capital structure of the Company will be as follows (assuming full subscription and no existing options are exercised prior to the Record Date):
Number Class 757,976,657 Listed Shares 64,901,186 Listed options ($1.00; 1 October 2010) 340,505,105 Listed Options ($0.05; 31 December 2011) 3,177,029 Unlisted options ($0.50; 30 June 2012)
The proceeds from the Rights Issue shall be used by the Company as follows:
Proceeds of the Offer $ Satisfaction of Company's joint venture obligations in 3,000,000relation to the Puntland Projects including drilling site assessment and preparation, rig design, identification and mobilisation, other pre-drilling costs and commencement of drilling Completion of acquisition and interpretation of seismic 2,000,000data and other exploration costs in relation to the Georgian Projects Tie-in costs for Smith No 1 well, development costs for 1,500,000second well and general exploration and development costs in relation to the Texas Projects Working Capital 668,609 Expenses of the Offer1 411,157 Total 7,579,766
The proposed timetable for the Rights Issue is as follows:
Event Date * Announcement of Rights Issue and Appendix 3B 19 January 2010 Prospectus lodged with ASX and ASIC 19 January 2010 Notice sent to Shareholders 21 January 2010 Ex Date 22 January 2010 (date from which securities commence trading without the entitlement to participate in the Rights Issue) Record Date 29 January 2010 (date for determining entitlements of eligible Shareholders to participate in the Rights Issue) Prospectus Despatched to Shareholders 1 February 2010 (expected date of despatch of Prospectus, Entitlement and Acceptance Forms) Rights Issue Offer Opens 15 February 2010 Closing Date* (5:00pm WDST) 15 February 2010
Securities quoted on a deferred settlement basis 16 February 2010
Notify ASX of under subscriptions 18 February 2010 Allotment Date** 23 February 2010 Despatch Holding Statements** 23 February 2010
* These dates are determined based upon the current expectations of the Directors and may be changed with 6 Business Days prior notice.
** Indicative dates only.
The Prospectus together with a personalised Entitlement and Acceptance Form will be sent to eligible Shareholders on the date set out in the timetable above. Instructions on how and when to apply under the Rights Issue are set out in the Prospectus. The Prospectus is an important document and should be read in its entirety before deciding whether to accept an entitlement. If after reading the Prospectus you have any questions you should consult your stockbroker, accountant or other professional adviser.
The Prospectus has also been lodged with ASX and is available on the ASX website at www.asx.com.au and on the Company's website at www.rangeresources.com.au.
There is also provision to apply for further New Shares in addition to your entitlement as some entitlements may not be taken up, thereby creating a shortfall. The Company reserves the right, within 3 months after the Closing Date under the Rights Issue, to allot any issue any shortfall to eligible Shareholders and non-Shareholders at the discretion of the Directors.
However, Shareholders should note that unless the Company has received commitments, to its satisfaction, by the Closing Date for the entire shortfall, the Rights Issue will not proceed and no New Shares will be issued and the Company will return all application monies to applicants in accordance with the Corporations Act.
If you have any questions regarding your rights, or the mailing of the Prospectus and the accompanying Entitlement and Acceptance Form, please contact the Company Secretary on (08) 9488 5220.
Yours faithfully
Peter LandauExecutive Director
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