1st Apr 2015 09:13
LONDON (Alliance News) - Range Resources Ltd Wednesday said shareholders have approved its USD60 million funding deal with Core Capital Management Co Ltd, which will allow the company to achieve significant production growth and lift the suspension of the company's shares.
Once Core Capital obtains the necessary regulatory and government approvals, with the process currently underway, the company expects to receive USD60 million from Core Capital in April. After Range gets the funding, it will seek approval from the Australian Securities Exchange and AIM to resume trading. Shares were suspended from trading on AIM in January due to its uncertain finances.
"Completion of the funding would place the company in a very strong position to achieve significant production growth, and to establish Range as one of the strongest independent oil and gas players in Trinidad with the largest private onshore acreage and significant cash reserves from which to grow," said Range.
The funds will be used to drill multiple development and exploration wells and to implement a waterflood programme in Trinidad. The company is currently finalising its work programme and production forecast for 2015 and 2016, which is expected to be announced in due course.
Under the terms of the transaction, Core Capital may nominate two persons to be appointed as non-executive directors of Range. To date, Core Capital has not nominated any directors but will keep this option under review.
Range Resources also said that 9.0 million unlisted options exercisable at GBP0.125 have expired, with none of the options being exercised before the deadline of March 31.
By Joshua Warner; [email protected]; @JoshAlliance
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