£1M SUBSCRIPTION TO ACCELERATE TRINIDAD ASSET GROWTH AND
TOTAL VOTING RIGHTS
Range, an international oil and gas company with assets in Trinidad and Indonesia, and an oilfield services business in Trinidad, is pleased to announce a subscription for new ordinary shares to raise £1 million before expenses (the "Subscription"). Pursuant to the Subscription, the Company will issue 909,090,910 new ordinary shares (the "Subscription Shares") at a price of 0.11 pence per new ordinary share.
The proceeds of the Subscription will be used to accelerate the growth strategy of the Company's current assets in Trinidad, with a view to further increasing production and cashflow.
Yan Liu, Range's Chief Executive Officer, commented:
"We are pleased to be able to commit this additional funding into infrastructure upgrades at our Trinidad assets. This will enable us to continue production growth and allow us to further develop our significant assets with a view of unlocking the full potential of our reserves base in the years ahead.
With an active ongoing work programme, we are focused on delivering on our key objectives geared towards production growth to 1,000 bopd target and increasing cashflows. We look forward to demonstrating progress to our new and existing shareholders.”
Background to the Subscription and Use of Proceeds
During the recent months, Range's production at the Beach Marcelle field in Trinidad has continued to grow. The field has an estimated 9.5 MMstb of 2P reserves, which accounts for 60% of Range's total Trinidad reserves (independently certified by Rockflow Resources Ltd CPR, June 2017). With an active work programme of waterflooding, development drilling and optimization, the Company anticipates that the field will be the largest contributor towards the Company's future production growth.
As previously advised, the Company has been undertaking upgrades on its oil handling and storage capacity at the field to accommodate the growing production. The Company acquired an additional truck which increased the frequency of sales of the produced oil from two to three times a week. The Company also installed an additional 500-barrel tank which increased the oil storage capacity at the field to 2,100 barrels. The tank was commissioned into operations on 19 July 2018.
The Company intends to use the net proceeds from the Subscription to make further investment into sales infrastructure upgrades at the Beach Marcelle field including purchasing of a new settling tank, transfer station, Lease Automatic Custody Transfer (LACT) unit, as well as other general investment into facilities upgrade in Trinidad. The Company expects that the effect of these upgrades will enable it to increase sales volumes from the Beach Marcelle field.
The Subscription and Total Voting Rights
Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM which is expected to become effective, and dealings are expected to commence, at 8:00 a.m. on 31 July 2018 ("Admission"). The Subscription Shares will rank pari passu with existing ordinary shares in the capital of the Company ("Ordinary Shares").
Following Admission, and in accordance with the Financial Conduct Authority's ("FCA") Disclosure and Transparency Rules, the Company hereby announces that it will have 8,504,921,692 Ordinary Shares in issue, each share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury.
Following Admission, the above figure of 8,504,921,692 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.