29th Sep 2014 10:02
LONDON (Alliance News) - Range Resources Ltd Monday said it is to refocus its Colombia portfolio to focus on three exploration assets and said it would face a USD3.5 million writedown from its decision not to pursue a farm-in option for the PUT-6 block in the country's Putamayo basin.
Range said it would refocus its Colombian portfolio to focus on a 10% interest the PUT-5, VMM-7 and VSM-1 exploration blocks following the finalisation of an agreement with Optima Oil Corp and Petro-Caribbean Resources Ltd, the operators of the Putamayo site. Optima has an 80% interest in the project, with Petro-Caribbean holding the other 10%.
Range said the decision to refocus its Colombia operation, and to decide against proceeding with the PUT-6 farm out, meant it would have to write down a USD3.5 million payment made to secure the issuance of a performance bond backing the initial work commitments at PUT-6.
The company also said that due to its focus on onshore assets, it would not be pursuing any formal deal to secure potential offshore blocks at the Puntland project in Somalia. It will continue to hold its 20% stake in non-operated onshore interest at the site, it added.
"To minimise our cost exposure on all fronts, we have taken pragmatic steps to exit our position in PUT-6 and PUT-7 blocks, where the work programme would have been very expensive for Range, so I am particularly pleased that we will maintain our exposure to Colombia at minimal cost," said Rory Scott Russell, chief executive officer.
Range Resources shares were down 1.6% to 1.62 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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