4th Aug 2014 09:15
LONDON (Alliance News) - Range Resources Ltd Monday said it has reached a settlement with Australia's International Petroleum Ltd regarding the repayment of the USD8 million loan it is owed by the latter.
The loan relates to the aborted merger between the two companies announced last year. That deal collapsed in the second half of 2013, and the USD8 million that Range lent to International Petroleum was due to be repaid with interest by April 30, 2014. Due to financial constraints on International Petroleum, it was unable to meet this deadline.
Under the settlement agreement, Range has agreed to extend the loan repayment to November 30 2014 in order to allow International Petroleum to complete the sale of its Russian assets.
"I am pleased that the new team at Range can draw a line under what has been a difficult transaction and focus our full attention on our operations in Trinidad,' said Range Chief Executive Rory Scott Russell.
Range shares were down 12% to 1.37 pence on Monday, putting among the five worst fallers on AIM in morning trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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