Range Resources Limited Sale agreement for drilling rigs signed (8254Q)
23 October 2019 - 5:00PM
UK Regulatory
TIDMRRL
RNS Number : 8254Q
Range Resources Limited
23 October 2019
Range Resources Limited
('Range' or 'the Company')
23 October 2019
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE
("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE
PUBLIC DOMAIN.
SALE AGREEMENT FOR DRILLING RIGS SIGNED
Range, an international company with oil and gas projects and
oilfield service businesses in Trinidad and Indonesia, is pleased
to announce that it has signed a Sale and Purchase Agreement with
Wilson Energy Services Inc., a private company incorporated in
Canada (the "Buyer") for the sale of four drilling rigs and related
equipment (the "SPA") for a total cash consideration of US$3.6
million (the "Transaction").
Key terms of the SPA:
-- Range Resources Drilling Services Limited ("RRDSL", the
"Seller"), a wholly owned subsidiary of Range, registered in
Trinidad and Tobago, has entered into the SPA with the Buyer for
the sale of four onshore drilling rigs number 16, 17, 18, and 19
and related equipment;
-- The Buyer will pay Range the total cash consideration of
US$3.6 million, payable in full on completion of the
Transaction;
-- Completion of the Transaction is subject to satisfaction (or
waiver) of the following key conditions:
o Final inspection of the rigs and equipment to the satisfaction
of the Buyer;
o Delivery of various documentation related to the rigs by the
Seller to the Buyer, including documentation required for the
transfer of ownership of the rigs by the Trinidad Transport Board
and the Licensing Authority;
-- The Buyer may purchase the rigs in its name or that of a
nominee which will be an affiliate or subsidiary of the Buyer to be
incorporated in Trinidad and Tobago prior to completion of the
Transaction; and
-- The agreed long stop date for the Transaction is 8 November 2019.
The asset value of the four rigs as at 30 June 2019 is
US$17,361,885 and the estimated loss before tax attributable to
these rigs for the year ended 30 June 2019 is US$2,155,488.
If the Transaction completes, RRDSL's residual rigs would
comprise 7 workover and swabbing rigs and 1 drilling rig. RRDSL
will continue to provide oilfield services to Range and other
operators in Trinidad. There can be no guarantee that the
Transaction will complete.
Range's Chairman, Kerry Gu, commented:
"Given challenges experienced by RRDSL at winning new service
contracts, as well as our proposed sale of Trinidad upstream assets
(RRTL sale) announced in September, we have been actively looking
at options to further reduce costs of our operations, selectively
streamline our assets and increase our liquidity. I am, therefore,
pleased with signing of the agreement for the sale of the drilling
rigs and look forward to working with our colleagues and partners
on bringing these important transactions to completion."
Contact details
Cantor Fitzgerald Europe (Nominated
Range Resources Limited Adviser and Broker)
Evgenia Bezruchko (Group Corporate David Porter / Rick Thompson (Corporate
Development Manager & Joint Company Finance)
Secretary) t. +44 (0)20 7894 7000
e. admin@rangeresources.co.uk
t. +44 (0)20 3865 8430
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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