Range is pleased to announce that following continued negotiations with the Company's debt holder LandOcean Energy Services Co., Ltd. (LandOcean), the parties have successfully signed a binding conditional Sale and Purchase Agreement for the sale of Range Resources Trinidad Limited (RRTL) to LandOcean (the SPA) in exchange for (i) offsetting all outstanding debt and payables (including the convertible note) due from Range and its subsidiaries to LandOcean and its subsidiaries, and (ii) a cash consideration of US$2.5 million (the Transaction).
Key highlights:
- Binding conditional agreements signed with LandOcean for the sale of RRTL in exchange for offsetting all outstanding debt due from Range to LandOcean (currently estimated at c. US$91 million) and cash consideration payable to Range of US$2.5 million;
- From the date of signing the SPA, all payables by Range to LandOcean under any debt agreements will be deferred, pending completion of the Transaction;
- Upon completion of the Transaction, the Company's indebtedness will be fully extinguished and all debt agreements will be terminated;
- The first tranche of the cash consideration of US$0.5 million will be payable upfront as deposit. Range will provide mortgages over its workover and swabbing rigs as security, with such mortgages to be released upon completion or termination of the SPA;
- The completion is subject to shareholder and government approvals;
- Range's shareholder meeting to consider the Transaction is planned for November 2019;
- As part of a wider restructuring, the Company continues to evaluate new opportunities and to review its strategy with regards to the drilling business in Trinidad and interests in the oil and gas project in Indonesia.
Range's Chairman, Kerry Gu, commented:
"I am delighted that we have been successful at signing this milestone agreement with LandOcean, which (if completed) will allow the Company to be completely debt-free and have sufficient cash resources to progress with new opportunities. The removal of debt is a fantastic outcome for the Company's shareholders and is vital to restore our financial health, increase liquidity and improve shareholder sentiment. I am also pleased with the consideration value of RRTL of almost US$95 million which is a testament to the quality of our Trinidad upstream assets.
Over the coming months, our focus will be aimed at securing the necessary approvals to complete this transformative transaction. As part of a wider strategy, we will also continue to evaluate new acquisition targets and review opportunities for our drilling business in Trinidad and interests in the Indonesian oil and gas project.
I am very excited about the future of our Company and once again would like to thank our stakeholders for their continued support during this process."
