Big picture - Why invest in Range Resources
Range Resources Snapshot
Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) Trinidad-focused independent E&P company, with a 100% interest in three onshore production licenses, namely Beach Marcelle, South Quarry and Morne Diablo, as well as additional highly prospective exploration acreage on Guayaguayare license (farm in) and newly awarded St Mary’s licence.The Company is focused on growing its production through waterflood projects, combined with extensive shallow onshore development drilling programme.
Range entered Trinidad in 2011 through the acquisition of three producing onshore licenses, gaining 100% working interest in Morne Diablo, South Quarry and Beach Marcelle licenses. The Company holds additional exciting exploration acreage on Guayaguayare license (farm in) and newly awarded St Mary’s license. Range is currently the largest private onshore acreage holder in Trinidad and has an extensive network of partners across the country’s oil & gas industry.
Range has strong strategic partnership with LandOcean Energy Services
- In June 2014, Range entered into an Integrated Master Services Agreement with LandOcean
- LandOcean is one of the largest oil and gas services companies in China. It is headquartered in Beijing with c. 2,000 employees and listed in Shenzhen with market cap c.US$ 1.4 billion. LandOcean provides a wide variety of services across the upstream development cycle, from frontier geological studies through to engineering and procurement for development and production projects
- In December 2014, Range has entered into the second purchase order, for the provision of technical services by LandOcean to implement waterflooding plans in Trinidad, including reservoir geology, reservoir engineering, drilling engineering, production engineering, surface facilities engineering and economic evaluation
- Strategic partnership provides access to sophisticated oilfield services as well as additional financial backing Range is very pleased to have LandOcean as a highly capable and technically sophisticated preferred services provider
- Funding for the waterflood projects has been arranged through credit facility arranged by LandOcean.
For more information please click here
The Company holds fully-carried 10% interest in three exploration blocks, PUT-5, VMM-7, and VSM-1, following the finalisation of a Joint Operating Agreement (“JOA”) with the blocks’ operator, Optima Oil Corp (“Optima”), a private oil and gas company (80% interest) and Petro-Caribbean Resources Ltd (10% interest).
These interests enable Range to maintain a presence in Colombia for future growth, at minimal cost. The three blocks are found in mature basins of the Putumayo and Magdalena Valley and hydrocarbon accumulations are found in the vicinity of each block.
Optima will bear and pay 100% of all costs and expenses incurred up to production under the JOA.
Range holds a 20% working interest in two Production Sharing Agreements (PSAs) for the Nugaal and Dharoor Blocks. These concessions encompass two highly prospective hydrocarbon basins covering an area of approximately 40,000km2. In January 2012, Range together with its joint venture partners successfully spud the historic Shabeel 1 well in the Dharoor Valley, the first in a two well exploration program and the first exploration well in Puntland in over 25 years, with the Shabeel North well having been spud soon after the completion of the Shabeel 1 well. Despite the non-commercial nature of the two wells the joint venture partners were extremely encourage that all of the critical elements exist for oil accumulations, namely a working petroleum system, good quality reservoirs and thick seal rocks.
In H1 2015, the Joint Venture (JV) made a decision to close down its office in Somalia, in order to reduce the JV’s cost exposure until there is clarity and contractual certainty around the PSAs and the legal regime that currently exists in Puntland. The JV proposed that the Puntland government offers a two year extension on both existing PSAs, free of any consideration, so that an adequate resolution can be achieved with regards to progressing the exploration programme.
REPUBLIC of GEORGIA
Range Resources (via its 45% shareholding in Strait Oil & Gas) holds interest in Block VIa in Georgia.
Georgia is a non-core asset for Range and the Company continues to explore potential disposal options for its interest.
Range holds 20% intererest in the Guatemalan project through its holding in Latin American Resources (LAR) (the Operator), a private Guatemalan oil and gas exploration company.
The project is located in the South Peten Basin in Guatemala where the Aztam 4 well was successfully drilled in 2013 and is producing 38 API oil. Gross 2P reserves - 2.3 mmbbls.
Mr David Yu Chen, Non-Executive Chairman
Mr Chen has over 15 years of corporate experience, having served as Chief Executive and Board member for companies listed both on US and Chinese stock markets. He founded Huashan Capital in 2009 to specialise in cross border investment transactions in the resources sector. His investment experience includes the establishment of a listed special purpose acquisition fund and venture capital investments. He has served as an independent director at Zhonglu Group, a Shanghai Stock Exchange listed diversified investment holding company, and serves as a director at SmartLink Ltd, a leading mobile payment service provider in China of which he is a lead investor. Mr Chen is currently the Vice Chairman and President of Hengxing Gold, a Hong Kong Stock Exchange listed gold mining company.
Mr Yan Liu, Chief Executive Officer and Executive Director
Mr Liu, has over 17 years of accounting and corporate advisory experience in China and Australia. Mr Liu was the Chief Financial Officer with AIM listed China Rerun Chemical Group Limited, a China-based lubricant oil company and a partner of Agile Partners, the financial advisory company based in China. Previously, Mr Liu was the Financial Controller at Legalwise Seminars Pty in Australia and he spent 8 years at Chinatex Corporation where he worked in project management positions. Mr Liu holds a Bachelor degree in Economics from Central University of Finance and Economics, China, and a Master degree in Commerce from the University of New South Wales, Australia.
Mr Zhiwei (Kerry) Gu, Non-Executive Director
Mr Gu, is an experienced corporate lawyer, who has worked with numerous companies seeking listing approval on various stock markets including Chinese A share, NASDAQ, TSX and HKSE. He is currently a partner of Dacheng Law Offices, the largest law firm in China. Mr Gu has participated in several Venture Capital and Private Equity investment cases by various funds, such as London Asia Fund, Warburg Pincus, Korea Development Bank, China Venture Investment Co, and China Cinda AMC. During his time with China National Gold Group Corp., Mr Gu was in charge of mineral resource M&A activities. Mr Gu holds a LL.B. from the Jilin University in China; a LL.M. from the Northeast University in China; and a Master of Applied Finance from the Macquarie University in Australia. Mr Gu is a qualified lawyer and securities practitioner in China.
Ms Juan (Kiki) Wang, Non-Executive Director
Ms Wang is currently an investment manager at Anterra Energy Inc. where she is responsible for Chinese investor liaisons. Prior to joining Anterra she was manager of corporate mergers and acquisitions at Land Ocean Energy Services Co. Ltd. Ms Wang has a commercial banking background, having previously worked for Deutsche Bank and Bank of East Asia.
Mr Nick Beattie, Chief Financial Officer and Joint Company Secretary
Mr Nick Beattie has over twenty years of experience in finance working with a range of international banks. Most recently he was a Managing Director in the BNP Paribas Upstream Oil and Gas team in London where he was responsible for leading the bank relationships with UK focused independent E&P companies. Nick has approximately ten years’ experience specifically financing the E&P sector and whilst at BNP Paribas, he structured and led numerous reserve based loans, development financings and other debt facilities. Prior to working with BNP Paribas, Nick worked as a Director within the Oil and Gas finance team at Fortis Bank covering Europe, Middle East and Africa and in a variety of roles with National Australia Bank Group. Nick is an Associate Member of the Association of Corporate Treasurers and a Fellow of the Chartered Institute of Bankers in Scotland.
Mr Walter Cukavac, Trinidad Chief Operations Officer
Geologist and geophysicist with over 17 years experience in the growth and development of onshore projects in Trinidad, which includes organizing the first 3D seismic acquisition onshore Trinidad, initiation of the first waterflood EOR project by an independent operator, and drilling over 250 wells.
Ms Sara Kelly, Joint Company Secretary
Ms Sara Kelly is an experienced Company Secretary and Corporate Lawyer with over 9 years’ experience. Sara has comprehensive knowledge and experience in administering regulatory frameworks and processes in a listed company environment and practised as a corporate lawyer specialising in acquisitions, takeovers, capital raisings and listing of companies on ASX and AIM. Sara has acted as the company secretary of a number of ASX listed companies.
Ms Evgenia Bezruchko, Investor Relations
Ms Evgenia Bezruchko has extensive experience in Investor Relations and Corporate Advisory in natural resources sector. Prior to joining Range in 2012, Evgenia worked in corporate broking and equity sales for a number of private and listed oil and gas and mining companies. Evgenia holds a BSc in Pharmacology from the University of Bristol.
Mr James Warren, Group Financial Controller
Mr James Warren is a Chartered Accountant with over 10 years' experience, predominantly in the oil and gas sector. Prior to joining Range in 2014, James was the Group Financial Controller with AIM listed oil and gas company Ascent Resources plc. James had previously worked within BDO LLP’s natural resources department in London where his client portfolio included numerous AIM listed oil and mining companies with exploration and production assets. James holds a Bachelor degree in Economics with Hispanic studies from The University of Nottingham.
Dr Douglas Field, Engineering Consultant
Dr Douglas Field is a petroleum and reservoir engineer with over 30 years' international exploration and production experience. Since 2003, he has held a number of engineering and business development posts at Tullow Oil plc, and from 2003-2007 was Group Engineering Manager where he was responsible for Tullow's petroleum, reservoir, well services, production and facilities engineers, and from 2007-2012 Business Unit Manager for Tullow’s activities in North and North West Africa. Prior to this, he worked in technical leadership positions for LASMO Grand Maghreb Ltd, Monument Oil and Gas plc, Centrica plc and BHP Petroleum Ltd. His experience includes running field and production operations in onshore Libya, Iran, Algeria, Angola and the North Sea. Dr Field holds a Ph.D. in Organic Chemistry from the University of Leeds.
Professor Tong Xiaoguang, Technical Advisor to the Board
Prof. Tong Xiaoguang has worked in numerous positions within China National Petroleum Corporation since 1964. His main expertise is in the area of petroleum basin geology and exploration. With his innovation in understanding the rules of hydrocarbon accumulation, he has made a great contribution to the discovery of many oil and gas fields. Prof. Tong, as the chief pioneer of overseas petroleum E&P activities for China, was appointed as Vice President and Chief Geologist in 1993, Senior Advisor in 2002 of China National Oil and Gas Exploration and Development. He has performed extensive studies on petroleum geology, hydrocarbon potential, investment environment, evaluation methods and technology of new venture oil projects for many countries around the world. Prof. Tong holds numerous China National Science and Technology Innovation Awards. He also won several provincial and ministerial level awards. In 1986, he was awarded the title of "China National Young Expert with Distinguished Contribution". In 2005, he was elected member of Chinese Academy of Engineering.
Information taken 24.06.2015
10 Adam Street
T: +44 (0) 20 7520 9486
F: +44 (0) 20 7520 9487
Ground Floor, BGC Centre
28 The Esplanade
T: +618 6205 3012
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
Cantor Fitzgerald Europe (Nomad and Broker)
One Churchill Place
London E14 5RB
Tel: +44 207 894 7000