Acquisition of 100% of Range Resources Drilling Services Limited
Monday, Mar 13, 2017
Range is pleased to announce the signing of binding Heads of Agreement (the “Heads of Agreement”) for the acquisition of 100% of Range Resources Drilling Services Limited ("RRDSL"), an established oilfield services business based in Trinidad.
- RRDSL is a major oilfield services company in Trinidad with of a large modern fleet of 12 rigs, including 4 drilling rigs purchased during 2014. RRDSL currently employs over 160 staff;
- Range plans to continue with its upstream operations, and believes the acquisition will significantly lower its operating and drilling costs in Trinidad and provide substantial operational flexibility;
- Range also believes RRDSL will be in a good position to take advantage of the increasing activity in the E&P sector and sees this acquisition as an opportunity to grow RRDSL into a leading oilfield services provider in the Caribbean region;
- The amount of consideration for the proposed acquisition is US$5.5 million (subject to adjustment as set out below). In addition, RRDSL has a loan from LandOcean which totals approximately US$19.5 million (“Existing Debt”);
- Payment of the consideration is due by no later than the date falling three years after completion and is subject to 6% interest per annum. Similarly, repayment of the Existing Debt will be due to be made in cash no later than three years from completion date, subject to 6% interest per annum;
- The proposed transaction, if completed, would constitute a reverse takeover that will be subject to a vote of the Company’s shareholders and relevant regulatory stock exchange approvals. Accordingly, as required by Rule 14 of the AIM Rules for Companies, an admission document and notice of general meeting (the "Notice of Meeting") will be sent to the Company's shareholders in due course which will, among other things, convene a general meeting of the Company at which a resolution approving the transaction will be proposed;
- The Company has requested a suspension of trading in its shares on AIM with immediate effect pending the publication of an admission document. The Company has also requested a voluntary trading halt on ASX; and
- The Company continues to evaluate acquisition opportunities in the upstream sector.
For more information, please visit: www.rangeresources.co.uk