Range signs SPA for Perlak interest acquisition
ASX and AIM-listed Range Resources has advised that it has signed a sale and purchase agreement with PT Hengtai Weiye Oil and Gas to acquire a 23% interest (increasing to 42% upon completion of a minimum work program) in the Perlak oil field, in the Sumatra Basin in Indonesia.
Range advised that the acquisition consideration of US$3.2 MM will be funded from its existing cash resources.
Range stated that it estimates material remaining oil-in-place of up to 500 MMbbl (covering all reserve and resource categories), while a work program is aimed at reinitiating production from existing wells and firming up a field development plan, with Range’s share of the work commitment amounting to US$2.3 MM over a three-year period.
“We are extremely pleased with the investment in this established oil field with a long history of production,” Range Chairman Kerry Gu commented. “The low acquisition cost, minimal work program commitment and protection from underperformance present a very attractive opportunity for the company to expand its footprint and potentially grow its reserves base.
“We look forward to the commencement of the work program and unlocking the full potential of this highly prospective asset, which should deliver significant benefits to our shareholders in the form of increased production, reserves and new development opportunities.”