27 Jan 2011 07:26
27 January 2011
Australian Securities ExchangeLevel 4, 20 Bridge StreetSYDNEY NSW 2000Via e-lodgement
RANGE CARRIED FOR MAJORITY OF SECOND EXPLORATION WELL IN PUNTLAND
Range Resources Limited ("Range" or "the Company") would like to announce the following with respect to the extension of the production sharing agreements (" PSAs") for the Dharoor Valley Exploration Area ("Dharoor") and the Nugaal Valley Exploration Area ("Nugaal"), as announced 18 January 2011.
Range has agreed with its joint venture partner and operator Africa Oil Corp. that the second exploration well due for spudding on of before 27 September 2011, will be included as part of Africa Oil's exploration commitments under the Joint Venture Agreement between Range and Africa Oil Corp. Under this agreement, Africa Oil Corp. is obliged to spend US$22.5m in both Dharoor and Nugaal before Range reverts to a contributing basis.
Africa Oil Corp. has satisfied their commitments with respect to Dharoor, however to date, still has circa US$15m expenditure commitments on Nugaal, with expenditure to date on Nugaal being circa US$7.5m. With the second well being able to satisfy the joint ventures obligations under the Nugaal PSA, Range will be carried for the first US$15m spent on the well.
Completion of £20 million Equity Line Facility with Dutchess Opportunity Cayman Fund
Range is also pleased to announce that it has secured a three year Equity Line Facility ("ELF") of up to £20 million with Dutchess Capital ("Dutchess"). The ELF has been arranged by First Columbus LLP ("First Columbus"), Dutchess's joint venture partner in the UK.
The ELF offers the Company ongoing access to capital as it enables the Company to obtain funding from Dutchess at any time during the next three years by way of subscription for new ordinary shares in the Company. Subscriptions will be priced at a 7 per cent discount to the market price and will take place at timings and intervals and in sizes determined by the Company, subject to the agreed mechanisms specified under the ELF.
The ELF may be drawn down in tranches linked to the Company's average daily trading volume in the three days prior to the notice of draw down or in other specified amounts. The Company is able to specify a minimum acceptable price for each tranche to prevent shares being sold in the market at an unacceptable discount. Each drawdown is limited to 2.99% of the issued capital at any one time.
Peter Landau, Executive Director of Range Resources LTD, commented: "alongside our existing funds, this facility will allow the Company to continue its rapid development of assets. Importantly the facility allows the Company flexibility to draw only as needed and therefore protect our shareholders from unnecessary dilution as well as restrictions on the lender with regards to the borrowing and short selling of Range shares".
Douglas Leighton, Managing Partner Dutchess stated, "We are pleased to be partnering with Range Resources as it looks to advance its asset development program through the utilization of our ELF financing. We are delighted to continue our expansion into London by funding listed companies such as Range Resources."
This facility, coupled with existing funds, the Red Emperor farm-in in Georgia as announced 10 January 2011, the Africa Oil carry on the second well referred to above, option exercise monies and revenue from Texan operations, leaves the Company very well placed to funds its comprehensive drilling and development program during 2011.
Issue of Shares and Options
Range Resources Ltd (the "Company") is pleased to announce the issue of the following securities:
* 22,420,233 Ordinary Fully Paid Shares being issued upon exercise of listed options (A$0.05, 31 December 2011) * 6,000,000 Ordinary Fully Paid Shares being issued upon the exercise of unlisted options (A$0.05, 31 March 2015) * 4,000,000 Ordinary Fully Paid Shares being issued in lieu of facilitation and various corporate and consulting services provided to the Company. Following the issue of these securities the total number of securities on issueare as follows:1,263,042,547 Ordinary Fully Paid Shares (RRS) 277,951,962 Listed Options (RRSO) (A$0.05, 31 December 2011) 3,934,511 Unlisted Options (A$0.05, 31 Mar 2015) 5,420,655 Unlisted Options (£0.04, 30 June 2015) 60,000,000 Unlisted Directors Options (A$0.10, 31 Dec 2011) 3,177,029 Unlisted Options (A$0.50, 30 June 2012)
For and on behalf of the Board
RegardsPeter LandauExecutive DirectorContactsRange ResourcesPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Tavistock CommunicationsDavid Tasker Jonathan CharlesTel: +61 (8) 9388 0944 Tel: + 44 (0) 207 920 3150Em: david.tasker@ppr.com.au Em: jcharles@tavistock.co.ukRFC Corporate Finance (Nominated Advisor) Old Park Lane Capital (Broker)Stuart Laing Michael ParnesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 493 8188Range 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.
* Range holds a 25% interest in the initial Smith #1 well and 20% interest in further wells on 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 independently assessed gross recoverable reserves in place of 240 Bcf of natural gas, 18 mmbbls of oil and 17 mmbbls of natural gas liquids. * Range holds a 21.75% interest in the East Texas Cotton Valley Prospect in Red River County, Texas, USA, with the prospect's project area encompasses approximately 1,570 acres encompassing a recent oil discovery. Independently assessed gross recoverable reserves in place of 5.4 Mmbbls of oil. * 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 - 45% Operator, in 2011. * 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 has recently completed a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing and estimated 2.045 billion barrels of oil-in-place. * In Trinidad Range has entered into a HOA to acquire a 10% interest in holding companies with three onshore production licenses. Independently assessed gross recoverable P2 reserves in place of 4.8MMbls.
The reserves estimate for the North Chapman Ranch Project and East Texas Cotton Valley has been formulated by Lonquist & Co LLC who are Petroleum Consultants based in the United States with offices in Houston and Austin. Lonquist provides specific engineering services to the oil and gas exploration and production industry, and consults on all aspects of petroleum geology and engineering for both domestic and international projects and companies. Lonquist & Co LLC have consented in writing to the reference to them in this announcement and to the estimates of oil, natural gas and natural gas liquids provided. These estimates were formulated in accordance with the guidelines of the Society of Petroleum Engineers ("SPE"). The SPE Reserve definitions can be found on the SPE website at spe.org.
The reserves estimates for the 3 Trinidad blocks referred above have been formulated by Forrest A. Garb & Associates, Inc. (FGA). FGA is an international petroleum engineering and geologic consulting firm staffed by experienced engineers and geologists. Collectively FGA staff has more than a century of worldâ€"wide experience. FGA have consented in writing to the reference to them in this announcement and to the estimates of oil and natural gas liquids provided. The definitions for oil and gas reserves are in accordance with SEC Regulation Sâ€"X.
RPS Group is an International Petroleum Consulting Firm with offices worldwide, who specialise in the evaluation of resources, and have consented to the information with regards to the Company's Georgian interests in the form and context that they appear. These estimates were formulated in accordance with the guidelines of the Society of Petroleum Engineers ("SPE").
About Dutchess Capital
Dutchess Capital is an investment manager which provides financing for promising, growth-stage companies. Founded in 2000, funds managed by Dutchess have made over $200 million in direct investments in companies throughout North America, Europe and Asia.
For over a decade, Dutchess has been a global leader in Equity Line Facility ("ELF") investments and has transacted in excess of $1.6 billion in such financings. The ELF is a flexible financing structure by which publicly traded companies can raise capital quickly, efficiently and with less dilution than most traditional offerings.
For more information, see dutchesscapital.com
ABN 88 002 522 009www.rangeresources.com.auLondon5th Floor, 23 King Street, St. James House, London SW1 6QYt: +44 207 389 0588, f: +44 207 930 2501
Australia
Ground Floor, 1 Havelock Street, West Perth WA 6005, Australiat: +61 8 9488 5220, f: +61 8 9324 2400
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