27 Jan 2016 08:18
Quarterly Activities Report
The Company provides its quarterly activities report for the period ended 31 December 2015.
Trinidad operations
· The Company's oil and gas production for the period was 50,311 bbls (average of 547 bopd) net to Range, which is a 5% decrease from 575 bopd in the previous quarter. The decrease was due to a combination of factors, principally a lack of new wells put on production during the quarter and natural decline of existing wells.
· The Company continued its development drilling programme, as summarised in the table below:
Well | Depth (ft.) | Location | Status (at the date of this announcement) |
MD 42N (renamed MD 249) | 2,610 | Morne Diablo | On production. Producing 21 bopd (average during the quarter).
|
GY 180SE (renamed GY 679) | 2,000 | Beach Marcelle | The well has been perforated. The performance of the well is being observed. |
GY 161 S (renamed GY 680) | 1,685 | Beach Marcelle | The log evaluation has been completed, with a total of 130 ft. net oil sand encountered. The well has been perforated and is producing 12 bopd. |
· In addition, the Company perforated a new upper zone on the existing QUN 47 well located in the Morne Diablo field. The well is flowing at a stabilised rate of 50 bopd from this new zone.
· The Company successfully obtained necessary government and regulatory approvals for Beach Marcelle and Morne Diablo waterflood projects. Initial water injection on Morne Diablo commenced during the quarter, with 12 wells approved for conversion to water injectors. The Company also commenced an implementation plan on the South East block of the Beach Marcelle waterflood project.
· Three additional new drilling rigs arrived in Trinidad during the quarter (four new rigs in total with drilling capabilities of 4,000, 2,000, 1,500, and 1,000 metres). These rigs are awaiting certification by the government.
· Given the continuing low oil price environment, the Company is reviewing its work programme for 2016.
Non-core assets
· Subsequent to the quarter end, the Company received a notice from Agencia Nacional de Hidrocarburos, stating that the licences over the three exploration blocks, PUT-5, VMM-7, and VSM-1 in Colombia have been revoked. Both the Company and the consortium are obtaining legal advice with regard to this matter and it is anticipated that the consortium will lodge an appeal against the decision.
· The Company continues to pursue disposals of its interests in Georgia and Guatemala.
Corporate and Financial
Unmarketable parcels: The Company completed a share sale facility for holders of unmarketable parcels on ASX. As a result, the Company has reduced its ASX shareholders by 63% to 1,854 holders at 22 December 2015. This will significantly reduce the administrative and other share registry costs to the Company associated with these very small holdings.
Lind financing: During the quarter, Range announced that the Western Australian Supreme Court, Court of Appeal dismissed Range's appeal seeking to reverse the decision of the Supreme Court (of first instance) refusing to set aside a statutory demand issued by Lind Asset Management LLC ("Lind"). Range, accordingly, paid the balance of the amount outstanding the subject of the statutory demand (approximately US$2.2 million).
US$50 million trade financing package: During the quarter, Range continued to work with LandOcean and Sinosure to finalise the US$50 million credit facility. The facility is subject to final approvals by Sinosure, and payment of a security deposit of US$7.5 million by Range.
Receipts from product sales and related debtors (for the 3 months to 31 December 2015): of US$2.1 million, compared with US$2.6 million in the previous quarter. The decrease was predominantly due to the lower oil price received during the period.
Capital expenditure (for the 3 months to 31 December 2015): of US$1.7 million, compared with US$4.5 million in the previous quarter. The decrease was primarily due to the payment of US$2.5 million during the prior quarter to LandOcean for completed work in relation to Purchase Order 1.
Cash at 31 December 2015: of US$21.9 million, compared with US$24.9 million in the previous quarter principally due to the payment to Lind as detailed above, and ongoing expenditure during the period.
Petroleum tenements held at the end of the quarter (Appendix A)
Tenement Reference | Location | Working Interest | Operator |
Morne Diablo | Trinidad | 100% | Range |
South Quarry | Trinidad | 100% | Range |
Beach Marcelle | Trinidad | 100% | Range |
Guayaguayare Shallow* | Trinidad | 65% | Range |
Guayaguayare Deep* | Trinidad | 80% | Range |
St Mary's | Trinidad | 80% | Range |
Block 1-2005, South Peten Basin | Guatemala | 20% | Latin American Resources Ltd |
Block Vla | Georgia | 45% | Strait Oil & Gas |
PUT-5, Putumayo Basin** | Colombia | 10% | Optima Oil Corp |
VMM-7, Magdalena Valley** | Colombia | 10% | Optima Oil Corp |
VSM-1, Magdalena Valley** | Colombia | 10% | Optima Oil Corp |
Notes:
*Subject to final government approvals
**Refer to announcement, published on 19 January 2016
No other petroleum tenements or farm-in, farm-out interests were acquired during the quarter.
Contact Details
| |
Range Resources Limited Evgenia Bezruchko (Group Corporate Development Manager) e. admin@rangeresources.co.uk t. +44 (0)20 7520 9486
| Cantor Fitzgerald Europe (Nominated Advisor and Broker) David Porter / Sarah Wharry (Corporate Finance) Richard Redmayne (Corporate Broking) t. +44 (0)20 7894 7000
|
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013
Name of entity |
RANGE RESOURCES LIMITED |
ABN |
| Quarter ended ("current quarter") |
88 002 522 009 |
| 31 December 2015 |
Consolidated statement of cash flows
Cash flows related to operating activities
| Current quarter $US'000 | Year to date (6 months) $US'000 | |
1.1 | Receipts from product sales and related debtors
| 2,123 | 4,732 |
1.2 | Payments for (a) exploration & evaluation (b) development (c) production (d) administration | (15) (587) (1,156) (1,079) | (56) (3,655) (2,638) (2,717) |
1.3 | Dividends received | - | - |
1.4 | Interest and other items of a similar nature received | 10 | 10 |
1.5 | Interest and other costs of finance paid | (9) | (9) |
1.6 | Income taxes received/(paid) | - | 648 |
1.7 | Other | - | - |
|
Net Operating Cash Flows |
(713) |
(3,685) |
|
Cash flows related to investing activities |
|
|
1.8 | Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets | - - - | - - (37) |
1.9 | Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets | - - - | - - - |
1.10 | Loans to other entities | - | - |
1.11 | Loans repaid by other entities | - | - |
1.12 | Other (provide details if material) | - | - |
|
Net investing cash flows |
- |
(37) |
1.13 | Total operating and investing cash flows (carried forward) |
(713) |
(3,722) |
1.13 | Total operating and investing cash flows (brought forward) |
(713) |
(3,722) |
|
Cash flows related to financing activities |
|
|
1.14 | Proceeds from issues of shares, options, etc. | - | 22,316 |
1.15 | Proceeds from sale of forfeited shares | - | - |
1.16 | Proceeds from borrowings | - | - |
1.17 | Repayment of borrowings | (2,226) | (7,226) |
1.18 | Dividends paid | - | - |
1.19 | Other (provide details if material) | - | - |
| Net financing cash flows | (2,226) | 15,090 |
|
Net (decrease)/increase in cash held
|
(2,939) |
11,368 |
1.20 | Cash at beginning of quarter/year to date | 24,869 | 10,692 |
1.21 | Exchange rate adjustments to item 1.20 | (9) | (139) |
1.22 | Cash at end of quarter | 21,921 | 21,921 |
Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities
| Current quarter $US'000 | |
1.23 |
Aggregate amount of payments to the parties included in item 1.2 |
93 |
1.24 |
Aggregate amount of loans to the parties included in item 1.10 |
- |
1.25 |
Explanation necessary for an understanding of the transactions | |
|
Payment of directors' fees
| |
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 $US'000 | Amount used $US'000 |
3.1 | Loan facilities
| - | - |
3.2 | Credit standby arrangements
| - | - |
Estimated cash outflows for next quarter
|
| $US'000 |
4.1 | Exploration and evaluation
| 15 |
4.2 | Development
| 590 |
4.3 | Production
| 1,150 |
4.4 | Administration
| 900 |
|
Total |
2,655 |
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. | Current quarter $US'000 | Previous quarter $US'000 | |
5.1 | Cash on hand and at bank | 13,918 | 16,869 |
5.2 | Deposits at call | - | - |
5.3 | Bank overdraft | - | - |
5.4 | Other (provide details)* | 8,003 | 8,000 |
| Total: cash at end of quarter (item 1.22) | 21,921 | 24,869 |
*US$8 million is held as cash collateral to support the performance bond issued to MEEI in respect of St Mary's work programme.
Changes in interests in mining tenements and petroleum tenements
|
| Tenement reference and location | Nature of interest (note (2)) | Interest at beginning of quarter | Interest at end of quarter |
6.1 | Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed
| Nil |
|
|
|
6.2 | Interests in mining tenements and petroleum tenements acquired or increased
| Nil |
|
|
|
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 per security (see note 3) (cents) | Amount paid up per security (see note 3) (cents) | |
7.1 | Preference +securities (description) | Nil |
|
|
|
7.2 | Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions |
|
|
|
|
7.3 | +Ordinary securities
| 7,589,790,100 | 7,589,790,100 |
|
|
7.4 | Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs |
NA |
NA
|
|
|
7.5 | +Convertible debt securities (description) | Nil | Nil |
|
|
7.6 | Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted |
|
|
|
|
7.7 | Options (description and conversion factor) |
80,508,341 5,000,000 5,000,000 7,058,824 146,533,850 5,000,000 476,190 952,381 6,714,284 9,000,000 3,947,369 8,666,670 694,445 2,205,885 1,250,000 17,333,336 3,000,001 5,153,846 2,000,000 2,000,000 5,000,000 5,180,000 23,636,364 7,500,000 31,000,000 1,000,000 161,472,247 118,729,593 4,000,000 194,585,862 172,557,274 75,000,000 25,000,000 |
| Exercise price $0.05 $0.10 $0.06 £0.17 £0.04 £0.04 £0.02 £0.02 £0.02 £0.02 £0.02 £0.02 £0.02 £0.02 £0.02 £0.02 £0.02 £0.01 $0.0321 £0.01 £0.01 £0.08 £0.01 £0.03 £0.01 $0.05 £0.01 £0.02 £0.01 £0.01 £0.02 £0.01 £0.01 | Expiry date 31 January 2016 31 January 2016 10 February 2016 30 April 2016 30 April 2016 11 July 2016 25 July 2016 29 July 2016 31 August 2016 31 August 2016 30 September 2016 30 September 2016 31 October 2016 31 October 2016 31 October 2016 31 October 2016 30 November 2016 30 November 2016 11 December 2016 31 December 2016 31 December 2016 31 January 2017 31 January 2017 09 September 2017 15 October 2017 31 January 2018 14 July 2018 14 July 2018 31 August 2018 03 September 2019 03 September 2019 30 March 2020 30 March 2020 |
7.8 | Issued during quarter | Nil |
|
|
|
7.9 | Exercised during quarter | Nil |
|
|
|
7.10 | Expired during quarter | 15,708,801 32,275,862 |
| £0.0615 £0.05075 | 19 October 2015 30 November 2015 |
7.11 | Debentures (totals only) | Nil |
|
|
|
7.12 | Unsecured notes (totals only)
| Nil |
|
|
|
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 5).
2 This statement does give a true and fair view of the matters disclosed.
Date: 27 January 2016
Yan Liu, Executive Director
Notes
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 and petroleum 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 or petroleum 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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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