1st Sep 2016 11:48
Range Resources Limited (RRL)Colombia Update 01-Sep-2016 / 11:47 GMT/BSTDissemination of a Regulatory Announcement that contains inside informationaccording to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Colombia Update As previously announced on 19 January 2016, Range received a notice fromAgencia Nacional de Hidrocarburos ('ANH') revoking the licenses over threeexploration blocks in Colombia (PUT-5, VMM-7 and VSM-1). The licenses hadbeen awarded to a consortium of Optima Oil Corporation ('Optima') and theCompany in December 2012 (the 'Consortium'). ANH alleged that its actionwas a result of the exploration work commitments not being fulfilled andpresentation of invalid letters of credit to ANH by Optima to support theminimum work obligations. A Joint Operating Agreement ('JOA') is in place amongst the Consortiumpartners. Under the terms of the JOA it was agreed between the Consortiumthat it was the sole responsibility of Optima to complete the minimum workobligations and to provide all necessary funding, including the provisionof valid letters of credit in favour of ANH. Under the JOA, Range has anindemnity to recover from Optima any payment incurred by Range for anycontractual obligations under the licences which were not paid by Optima. Range advises that it has now received a demand notice from ANH addressedto the Consortium seeking payment of the full amount of the outstandingobligations due to ANH totalling up to approximately US$53million. Thedeadline for making the payment, or otherwise responding to ANH with adefence against the action, is 7 September 2016. In conjunction with its legal advisers in Colombia, Range has reviewed thedemand notice and currently intends to present a writ before ANH prior tothe 7 September 2016 deadline which will outline the Company's objectionsand defence against the action by ANH. The other Consortium partners willfile similar actions. The Company continues to work with its Consortium partners, their legaladvisers and all stakeholders in seeking a resolution to this matter. TheCompany will update shareholders as appropriate. Contact DetailsRange Resources Limited Cantor Fitzgerald EuropeEvgenia Bezruchko (Group Corporate (Nominated Advisor andDevelopment Manager) Broker) e. [email protected] David Porter / Sarah Wharry (Corporate Finance)t. +44 (0)20 7520 9486 David Banks (Corporate Broking) t. +44 (0)20 7894 7000 --------------------------------------------------------------------------- Language: English ISIN: AU000000RRS3 Category Code: MSCU TIDM: RRL Sequence Number: 3372 Time of Receipt: 01-Sep-2016 / 11:47 GMT/BST End of Announcement EQS News Service --------------------------------------------------------------------------- 498157 01-Sep-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.
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