Range Resources Limited (LON:RRL) (ASX:RRS) said that LandOcean Energy Services Co. Ltd has confirmed that an outstanding payment of US$2.8mln remains refundable to Range, and they will use all reasonable endeavours to arrange the payment as soon as possible.
The oil and gas production firm pointed out that, as announced on 28 December 2017, Soca Petroleum Limited, a wholly owned subsidiary of the company, advanced the refundable payment to LandOcean’s Petroleum subsidiary as part of the consideration for the acquisition of Range Resources’ Drilling Services business.
However, following a repayment request from Range, LandOcean advised that it was unable to return the refundable payment immediately as stipulated by the agreement due to foreign exchange controls and the need for routine examination and approval of the payment from the State Administration of Foreign Exchange of China SAFE.
Range said it believes that it may take up to 6 months to obtain the necessary approvals from SAFE, and a backstop date for the refundable payment of 30 June 2019 has been agreed between the two companies.
The group said its current cash position is approximately US$3.3mln.