Range Resources Farms Out Georgian Interests

Source: www.gulfoilandgas.com 1/10/2011, Location: Asia

Range Resources Limited along with its Georgian partner Strait Oil and Gas UK Limited is pleased to announce that it has entered into a Heads of Agreement (HOA) with Red Emperor Resources NL to acquire a 20% farm-in interest (10% from Range and 10% from Strait) in Block VIa and Block VIb in Georgia.

The key terms of the HOA will see Red Emperor contribute 40% of the drilling costs for the planned two well program (capped at total gross costs of $14m – RMP contributing $5.6m) to acquire the 20% interest in the two blocks.

The Company believes the transaction significantly reduces the Company's financial exposure to the two well drilling program through the favourable two-for-one farm-in terms, whilst still maintaining a significant 40% interest in the two blocks.

As part of the discussions with Red Emperor's management, it is Red Emperor's intention to offer Range's ASX and AIM shareholders the opportunity to participate in a future capital raising subject to necessary regulatory requirements. Details of this offer to Range's ASX and AIM shareholders will be communicated closer to the time of the capital raising.

Terms of the Heads of Agreement
Terms of the Heads of Agreement entered into with Red Emperor are as follows with the following conditions precedent:
(a) Completion by Red Emperor, to the reasonable satisfaction of its directors, of all necessary due diligence investigations in respect of Strait and the Georgian Blocks by 31 January 2011 (or such later date as agreed by the parties);
(b) The execution of the Share Subscription Agreement by the parties by 28 February 2011 (or such later date as agreed by the parties);
(c) Range and Strait procuring any necessary third party consents for the subscription of Shares to the Purchaser as a result of the Transaction (if required) by 15 February 2011; and
(d) Receipt of all necessary ministerial consent, government and regulatory approvals, in respect of the Subscription of Shares by 15 February 2011 (or such later date as agreed by the parties).


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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