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Range Resources secures US$15mln to accelerate Trinidad drilling

Published: 10:13 30 Sep 2014 BST

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Trinidad focussed Range Resources (LON:RRL) has arranged a US$15mln financing with New York based investment group Lind Partners.

The injection of funds will allow Range to invest in its rig fleet and help accelerate drilling in Trinidad.

This follows an extensive review of potential financing options and Range chief executive Rory Scott Russell told investors that the Lind arrangements was the most attractive option available.

"We are very pleased to have secured this significant new financing package from Lind which will enable us to invest in the growth of our Trinidad production,” he said.

“The flexibility of the financing agreement is ideally suited to our needs and we are pleased to have engaged with Lind, an experienced investor who has a long-standing track record of providing finance to independent oil and gas companies.   

 “The financing provides us with the necessary funding to progress our near to medium-term ambitions in Trinidad - notably increasing our production and improving our drilling efficiency. 

“Once we have successfully made progress in these areas, we believe that we will be in a strong position to obtain longer-term finance."

Lind will lend Range the money over a maximum term of 24 months and the funds will be released in two tranches.

First Range will receive US$10mln with a further US$5mln available six months down the line. 

Range will have the option to either repay Lind in either cash or shares, and the repayment amount will total US$18.375mln - which equates to 22.5% over the initial US$15mln.

Additionally, Lind will be given options representing 46.5mln new Range shares, exercisable for 36 months, as well as 38mln new Range shares as collateral.

On AIM on Tuesday morning Range shares were down 0.49p, 30%, trading at 1.12p.

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