Half Year Report - 31 December 2009
16 March 2010
Australian Securities Exchange
Level 4, 20 Bridge Street
SYDNEY NSW 2000
Via e-lodgement
HALF YEAR REPORT
Please find attached extracts from the Company's Half Year Report for the
period ended 31 December 2009, being the:
- Statement of Comprehensive Income;
- Statement of Financial Position; and
- Statement of Cashflow.
A copy of the full Half Year Report is available on the company's website
www.rangeresources.com.au
For and on behalf of the Board
Yours faithfully
Peter Landau
Executive Director
RANGE RESOURCES LIMITED
ABN 88 002 522 009
DIRECTORS' REPORT
Your directors submit the consolidated financial report of Range Resources
Limited for the half-year ended 31 December 2009.
1. Directors
The names of the Directors who held office during or since the end of the
half-year:
Sir Samuel Jonah Non-Executive Chairman
Peter Landau Executive Director
Marcus Edwards-Jones Non-Executive Director
Anthony Eastman Non-Executive Director
2. Results
The Consolidated entity incurred an operating loss after income tax of
$1,764,380 (December 2008: $5,590,456) for the half-year ended 31 December
2009.
3. Review of Operations
Puntland
Following the conclusion of negotiations between the Company's Joint Venture
Partner, Africa Oil Corp. ("Africa Oil") and the Government of the Puntland
State of Somalia, Range, Africa Oil and the Puntland State of Somalia entered
into amending agreements modifying the terms of the existing Production
Sharing Agreements ("PSAs") made in respect of the Dharoor and Nugaal Valley
Exploration Areas. The revised agreements were signed by the parties in
Garowe, Puntland, subsequently approved by the Cabinet of the Puntland
Government and ratified by the Parliament of the Puntland State of Somalia
during December 2009.
With the conclusion of the negotiations and the execution of the amending
agreements, the PSAs, as amended, now provide for initial exploration periods
in respect of both blocks that have been extended from 36 months to 48 months
with a revised expiry of 17 January 2011. In addition, the terms of the
exploration programs have been amended so that Africa Oil can, at its option,
drill one exploratory well in each of the Nugaal and Dharoor Valley
Exploration Areas, or two exploratory wells in the Dharoor Valley, during the
initial exploration period. In consideration of the extension of the
exploration period, the parties agreed to voluntarily relinquish 25% of the
original agreement area on or before 17 January 2010.
Onshore Puntland Interest: Range - 20%
Africa Oil Corp - 65%
Lion Energy Inc - 15%
The successful conclusions of these negotiations now paves the way for Africa
Oil to commence operations and drilling of the first exploration well in
Puntland for over 16 years.
Following the successful completion of negotiations regarding the onshore
licences and previous technical presentations to the Government on the
proposed offshore areas of interest, Range will look to continue negotiations
regarding the formalisation of a new PSA with respect to the exploration and
development of off shore Puntland in early 2010.
Georgia
In July 2009 Range entered into a Heads of Agreement with unlisted UK Company,
Strait Oil & Gas (UK) Limited to acquire a 50% farm-in interest in two Oil &
Gas blocks in Georgia, Eastern Europe. The two blocks subject to this
agreement cover a contiguous area of 7,000 sq km (approx 10% of the surface
area of the Country) and were subject to significant exploration in the Soviet
era.
Subsequent to completion of the Heads of Agreement to complete Phase II of the
PSA, approval was obtained from the Georgian Government for The Geophysical
Institute of Israel to commence the 2D seismic operation on both Blocks.
Mobilisation of the vibrosis equipment was completed in October and after
independent testing and technical audit the seismic operation started in
November 2009.
Data quality has been consistently good to very good and the highly structured
overthrust features, that will require competent data processing, are expected
to provide many potentially viable structures as drilling targets.
An assessment of previously drilled gas wells is progressing and will be
followed by an independent review.
Texas
In September 2009, Range acquired a 25% working interest in the North Chapman
Ranch Project located in Nueces County, Texas. The project area encompasses
approximately 1,280 acres (and subsequently increased to 1,680 acres) in on of
the most prolific oil and gas producing trends in the state of Texas.
During the half year drilling was completed on the Smith #1 well with testing
confirming a commercial discovery.
The Smith #1 was drilled and logged to a depth of 13,975' (4,260m). Based on
open-hole logs indicating approximately 120' (37m) of net pay thickness in
three zones with no water, 4 ½" production casing was run to TD and cemented
in place. After an interval of just 20' (6.2m) in one of the three zones was
perforated, bottom-hole pressure was estimated to be approximately 11,650 psi.
The well was unloaded on a 6/64" choke until gas reached the surface, and
subsequently opened to a 10/64" choke for 5 hours to clean the well up.
Despite the small choke size, the average rate during this period was 2.4
million cubic feet of gas and 191 barrels of oil per day with no water. Final
flowing casing pressure was 6,354 psi.
The well was shut in with a final measured casing pressure of over 9,000 psi.
4. Events Subsequent to Reporting Date
Texas
The Smith #1 Well was successfully connected to the commercial sales line with
initial production from the middle zone significantly better than expected.
It is anticipated that the well will be producing from this zone for several
months before it will be shut in and a completion rig likely moved in. Once
the completion rig is in place, the lower zone is expected to be fracture
stimulated and tested, along with the upper zone. All three zones will then be
comingled and produced.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED
31 DECEMBER 2009
Consolidated
31 December 31 December
2009 2008
$ $
Notes
Revenue from continuing operations
Interest Income 5,239 126,524
Other Income - 33,105
Expenses from continuing operations
Depreciation (14,416) (41,734)
Administration expenses 2 (1,698,726) (2,338,373)
Unrealised gain / (impairment) on available
for sale financial assets - (2,609,105)
Foreign exchange (loss) / gain (56,477) 428,950
Loss before income tax expense from
continuing operations 2 (1,764,380) (4,400,633)
Income tax expense - -
Loss after tax from continuing operations (1,764,380) (4,400,633)
Loss from discontinued operations 11 - (1,189,823)
Net loss for the half-year attributable to (1,764,380) (5,590,456)
equity holders of Range Resources Ltd
Other comprehensive income
Changes in the value of available-for-sale 280,870 835,439
investments
Other comprehensive income for the half-year,
net of tax 280,870 835,439
Total comprehensive income / (loss)
attributable to equity holders of Range
Resources Ltd (1,483,510) (4,755,017)
Continuing Operations
Basic loss per share (cents per share) (0.40) (2.20)
Diluted loss per share (cents per share) N/A N/A
Total operations
Basic loss per share (cents per share) (0.40) (2.80)
Diluted loss per share (cents per share) N/A N/A
The Company's potential ordinary shares were not considered dilutive as the
Company is in a loss position.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2009
Consolidated
31 December 30 June
2009 2009
$ $
Notes
Current Assets
Cash and cash equivalents 174,073 416,417
Trade and other receivables 98,002 42,451
Other current assets 28,468 52,225
Total Current Assets 300,543 511,093
Non-Current Assets
Property, plant & equipment 41,205 49,779
Financial assets available for sale 6 1,472,559 1,191,689
Exploration expenditure 7 83,183,290 79,888,841
Investment in associates 8 3,733,812 -
Total Non-Current Assets 88,430,866 81,130,309
Total Assets 88,731,409 81,641,402
Current Liabilities
Trade and other payables 1,443,037 770,027
Borrowings 9 1,609,562 -
Total Liabilities 3,052,599 770,027
Net Assets 85,678,810 80,871,375
Equity
Issued capital 10 110,279,230 104,063,285
Reserves 12,635,050 12,279,180
Accumulated losses (37,235,470) (35,471,090)
Total Equity 85,678,810 80,871,375
RANGE RESOURCES LIMITED
ABN 88 002 522 009
STATEMENT OF CASHFLOWS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2009
Consolidated
Notes 31 December 31 December
2009 2008
$ $
Cash Flows From Operating Activities
Payments to suppliers and employees (1,692,320) (1,052,165)
Interest received 5,239 53,071
Interest paid and borrowing costs (75,562) -
Net cash provided by/(used In) Operating (1,762,643) (999,094)
Activities
Cash Flows From Investing Activities
Payments for plant and equipment (5,842) (226,614)
Payments for exploration and development 7 (2,465,053) (2,613,717)
expenditure
Deposits to acquire investments in 8 (3,733,812)
associated
Loans to other entities (79,638) -
Loans to related entities - (33,495)
Net cash provided by/(used In) Investing (6,284,345) (2,873,826)
Activities
Cash Flows From Financing Activities
Proceeds from issues of shares 10 6,509,969 -
Payment of share issue costs (305,325) (7,786)
Loan funds received 9 1,600,000 -
Net cash provided by/(used in) Financing 7,804,644 (7,786)
Activities
Net Increase/(Decrease) In Cash Held (242,344) (3,880,706)
Cash at beginning of period 416,417 4,137,360
Cash at end of period 174,073 256,654
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