Annual Financial Report 2015

RNS Number : 6829A

Range Resources Limited

30 September 2015

Annual Financial Report

Range today releases the financial report for the year ending 30 June 2015. A copy of the full Annual Financial Report is available on the Company's website www.rangeresources.co.uk and also the Australian Securities Exchange website www.asx.com.au (ASX code: RRS).

HIGHLIGHTS OF THE FINANCIAL YEAR

• Funding secured: Despite a challenging market for junior E&P companies, Range has established a stable funding position for the growth of the Company through attractive equity and supplier financing packages. In addition, the Company is looking to finalise a trade financing of up to US$50 million.

• Cutting costs and streamlining operations: The Board has been focused on driving efficiency and cost reduction by streamlining the scale and geographic footprint of non-core and cash draining businesses; and a reduction in G&A costs which have shown a material decrease in the last year, with the Company striving to reduce these costs even further. During the year, the Company has successfully completed the sales of its drilling business, Texas assets, Citation Resources equity holding and an exit from Puntland. These assets required capital funding so each disposal has eliminated imminent spending commitments whilst raising cash for the Company (during the year Range raised approximately US$5 million from these disposals).

• Trinidad operations: The Board is confident that the financial year of 2016 will be pivotal in improving operational performance and growing production (the average production for the period was 562 bopd). The expected access to four brand new drilling rigs during Q4 2015 will be crucial to improving capabilities and limiting the downtime of Range's development and exploration operations. The Company has finalised a 22 development and exploration well work programme, which commenced subsequent to the period end. In addition, the Company has commenced exploration operations on the two highly prospective St Mary's and Guayaguayare blocks. Waterflood projects are also progressing, with water injections planned to commence once the necessary approvals have been received.

• Licences: The Company successfully signed the Exploration & Production licence and negotiated the Joint Operating Agreement on the new St Mary's block. Range also completed assignment of the partial interest and the operatorship on the Guayaguayare block and applied for the approvals to transfer the remaining interest and extension of the PSCs.

• Environmental: Ongoing activities to comply with existing licence obligations and in preparation for drilling and exploration across five blocks in Trinidad.

• Financial: As a result of the actions taken by the Board and management, the financial performance during the year has substantially improved compared to the prior year. Despite the overall loss still recorded there is a notable, positive trend in financial performance with particular improvement being seen in key areas between the first and second half of the year.

- The Consolidated Statement of Profit or Loss and Other Comprehensive Income for the financial year shows a net loss attributable to owners of US$30,279,054 (2014: net loss of US$102,541,990).

- The Group's revenue was US$13,152,954 (2014: US$21,185,745). The decrease of US$8,032,791 was primarily due to lower oil prices during the period.

- The net loss after tax from continuing operations was US$22,581,895 (2014: US$59,096,590). Decrease in loss primarily due to large numbers of write-offs in the prior year.

- Net cash outflow from operating activities for the period was US$6,955,264 (2014: outflow US$6,221,781).

- General and administrative costs overall decreased by US$4,537,360 to US$9,948,494 (2014: US$14,485,854) as a result of cost cutting measures implemented across the Group.

- The net assets of the Group decreased by US$14,271,807 to US$95,023,456 (2014: US$109,295,263). This decrease is primarily due to impairments made in the year to the Group's Georgian assets (impairment of US$5,000,000) and Guatemalan assets (impairment of US$1,779,476), and other losses made by the Group.

Included with this announcement is a summary of Range's full year audited annual accounts for the year ended 30 June 2015 as extracted from the annual report, being:

· Consolidated Statement of Profit or Loss and Other Comprehensive Income;

· Consolidated Statement of Financial Position;

· Consolidated Statement of Changes in Equity;

· Consolidated Statement of Cashflows; and

· Notes to Financial Statements.

The Company expects to announce an updated reserves statement in due course.

Contact Details

Range Resources Limited

Evgenia Bezruchko (Investor Relations)

e. admin@rangeresources.co.uk

t. +44 (0)20 7520 9486

Cantor Fitzgerald Europe (Nominated Advisor and Broker)

David Porter / Sarah Wharry (Corporate Finance)

Richard Redmayne (Corporate Broking)

t. +44 (0)20 7894 700

CHAIRMAN'S STATEMENT

Dear Shareholder

On behalf of the Board of Directors, I would like to send a very warm welcome to all shareholders as this is the first Annual Report of the Company that we have the honour of presenting.

Despite the challenges facing the energy sector during the period, the last financial year was a year of change and unprecedented activity for the Company, and the progress made so far by our team has been extremely encouraging. With renewed leadership six months into the financial year, we were able to achieve a number of significant milestones in a relatively short period. We have completed an important equity transaction with a cornerstone investor at a significant premium to the share price and secured a credit facility with our strategic partner and oilfield services provider LandOcean, which not only allowed the Company to commence its work programme, but also enabled us to repay invoices through future cashflows.

Following a thorough review, we have adopted a revised Company strategy to focus on growing, managing and operating our upstream assets. We have driven efficiency and cost reduction by streamlining the scale and geographic footprint of our business. We successfully completed a number of non-core asset divestments, including sales of the drilling business, Texas assets, and equity holding in Citation Resources, as well as withdrawal from Puntland. For the first time in Range's history, following the sale of the drilling business, the Company has positive operating cashflows from its Trinidad operations.

During the year, we have successfully signed the Exploration & Production licence on St Mary's block and PSCs and operatorship on the Guayaguayare block. The first exploration well on the Guayaguayare Shallow PSC is expected to spud during Q4 2015. Range is one of the only operators to be undertaking an extensive exploration campaign onshore Trinidad. We feel extremely privileged to be in this advantageous position compared to our peers and very much look forward to our continued progress with these exciting opportunities.

Waterflood projects are also progressing well. During the year, Range and LandOcean have been evaluating multiple waterflood blocks on Beach Marcelle, South Quarry field, and Morne Diablo fields. Water injections are planned to commence during 2016 and the projects will play a key role in our next stage of growth as oil producer.

The progress made to date is a testimony of the impressive work that our team has achieved and validates the Company's strategy, prospectivity of the assets and the potential to achieve significant oil production growth. There is no doubt that the next few years will bring many challenges for the Board, management team and employees. However, we will continue to be focused on improving the results by executing a bold and simple agenda - expand drilling activities, grow production and cashflows.

I was extremely encouraged by the Directors and management team participating in the share purchases during the year to a value of US$300,000. By making personal investments, we have further aligned our and shareholders' interests and demonstrated our commitment and belief in the Company and return on the investment.

During the next financial year, shareholders can look forward to a number of key developments and steady positive newsflow, including:

· Drilling programme of initial 22 wells, aimed at production and cashflow growth

· Implementation of large scale waterflood projects

· Exploration programme on the Guayaguayare block, including drilling of at least two exploration wells

· Exploration programme on the St Mary's block, including audit of existing field infrastructure, facilities and wells and tendering for drilling rig, equipment, and other oilfield services

· Remaining non-core asset divestments (Georgia, and Guatemala)

· Continued reduction of G&A costs and streamlining of operations

· In line with the business growth strategy of the Company, the Board continues to evaluate potential acquisitions of high quality, near-term oil production assets at attractive valuations, which will create value for shareholders, provide Range with additional production and revenue, and leverage our partner's capabilities and resources.

The creation of long-term value for our shareholders remains the fundamental driver of everything we do and we look forward to demonstrating this as we develop our ambitious plans and achieve our goals. With the Company's highly prospective licences, drilling underway, and funding in place, I believe the Company is well positioned for future success by growing production and reserves, and transforming Range into a significant oil producing company, which is not yet reflected in today's share price.

On behalf of the Board, I thank all our shareholders, for your continued support through this past year and as we move forward and look forward to further success in the future.

Yours sincerely,

David Chen

Chairman

CHIEF EXECUTIVE'S STATEMENT

Dear Shareholder

Welcome to Range's Annual Report.

Introduction and progress overview

I joined Range mid-way through the financial year and have been encouraged by a portfolio of very attractive assets in Trinidad that the Company has built with experienced management team to support the future growth.

Given the low commodity price environment, we had to take a number of immediate actions in order to preserve cash and control costs. As a result, we completed a number of non-core asset divestments and streamlined our operations, which allowed us to focus our time and resources on growing our core assets. As a result of the drilling business sale, we have reduced our headcount across the Group from over 250 to 32. Our G&A costs were down significantly by 32% during the period and we are continuing to target cost savings across the business and improving efficiencies of our operations through maximising production and minimising downtime.

The newly completed funding with Sibo is transformative for the Company, and provides us with capability to progress with our work programme. I would like to thank Sibo for the support during the times of challenging markets. It is hugely significant for the Company to have such a supportive professional cornerstone investor, as we develop our ambitious plans.

In addition, LandOcean in conjunction with Sinosure are looking to provide Range with up to US$50 million. The package will provide us with further funding flexibility to fully exploit the Trinidad assets and we are hoping that it will be finalised shortly.

During the year, we have worked on enhancing our internal control and risk management processes to ensure they are implemented across our operations. Numerous policies and procedures to mitigate the risk (as described in more detail in the Directors' report) were implemented. Regular revision and reviews are conducted by the management with oversight at the Board level.

In addition to my CEO position, I have extended my role to that of Trinidad General Manager, focusing on managing the Trinidad business, growing production and driving profitability. Together with the local management team, we have been working on improving forward planning in permitting as much as possible, and have implemented new tracking systems which resulted in several of the approval application processes becoming more standardised. In addition, along with other operator companies in Trinidad, we have been working with the relevant authorities to define better guidelines, which have led to improved submissions and approval timelines. We are extremely pleased with continued support from the government of Trinidad and Tobago, and will continue to actively engage and cooperate with the government on our growth plans and strategy.

With funding in place, addition of four new rigs to the drilling fleet, and LandOcean as a key oilfield services provider, we are confident that we will be able to deliver on our plans and drill in excess of 20 exploration and development wells during 2015/ 2016. By expanding our drilling campaign and improving our knowledge of the reservoirs, not only we are aiming to achieve material production growth, we are also hoping to grow our reserves base.

Health, safety, and environment (HSE)

During the year, Range continued with its commitment to safe operations. Health and Safety inspections were regularly performed on all the assets, with no major issues identified. The management has HSE reporting and review processes as part of its operational management in place, which are regularly reviewed by the Board.

The Company is achieving a Lost Time Incident frequency rate of 2.5 which is below to that reported by the American Petroleum Institute for the onshore US Oil & Gas Industry.

During the year, the Company has successfully completed its accreditation process in Trinidad as per STOW ("Safe to Work") requirements and was granted two years certification, effective December 2014. This was a result of implementation of the various HSE management systems, and we will continue to manage, monitor and lend support towards the continued focus on HSE through effective leadership and involvement.

In addition, during the year Range's HSE and gathering station teams won a number of awards at Petrotrin's annual HSE Leadership Forum including the top award for best all round lease operator. I am pleased to acknowledge all the efforts and hard work from the team members for these achievements and hope that we will continue with such a dedication in 2016 and beyond.

Production

During the year, our average production of approximately 560 bopd was largely unchanged from the previous year. The lack of production growth was a result of few wells drilled during the year caused by failures of old rigs and equipment. In addition, results from the South Quarry development wells were disappointing and did not achieve the production rates that were anticipated.

Despite being disappointed by lack of new drilling during the period, it is important to recognise the hard work of our production team in Trinidad. As a result of 290 well workovers that were completed during the period, we were able to maintain the current production levels.

Total net production attributable to Range during the period was 205,209 bbls, which in turn generated revenue from sales of over US$13 million. We are confident that the production and cashflows from our Trinidad operations will show significant growth during FY 2016. Our previously announced production target of 1,000 bopd by the end of Q4 2015 remains unchanged.

Operational review - Trinidad

During the year, 11 development wells were drilled on the Company's Morne Diablo and South Quarry licences. Range and LandOcean have initiated a detailed analysis of the Company's three producing fields and the drilling results from the previous wells, aimed at improving the understanding of the structures and reservoirs. Further studies are ongoing. In addition, a number of past performance issues were identified, including a poor selection of previous drilling locations and targets, as well as engineering failures during drilling operations. The poor condition of the old rig fleet was also a major contributing factor for missed production targets in the past.

Therefore, I firmly believe that the next financial year will show substantial improvement in operational performance. With increased knowledge of the fields, we will be able to select the most prospective well locations, and thus increase economics from the future drilled wells. The addition of new rigs will also be pivotal to improving results and limiting the downtime of Range's development and exploration operations.

Subsequent to the year-end, we finalised the initial 22 development and exploration well programme, with the first well having spudded in September 2015. It is expected that the proposed wells will be drilled by the end of Q1 2016. We are optimistic about this target, however the drilling schedule remains subject to a number of variables, including availability of suitable rigs, arrival and commissioning of new rigs into RRDSL's rig fleet, various regulatory approvals, and the construction of drilling pads. RRDSL will also be required to recruit additional drilling staff to operate the new rigs.

We have also commenced Electromagnetic Surveying in our fields. This technology is used to image shallow resistive bodies and identify possible oil reservoirs at depths of 1,000 ft. or less, thus reducing exploration and development risks at a relatively low cost with minimal environmental impact.

I am particularly excited about commencing the waterflood projects on our Beach Marcelle and Morne Diablo fields during 2016. It is a large scale operation, which will be an essential component of our production growth. Surface facility planning and scheduling for implementation are currently underway. It will take approximately 6 months after injection commences until we can experience production growth, so we are likely to see the rewards towards 2017.

Exploration

Exploration is critical to the growth of any oil & gas company, and we are delighted to have finalised the agreements on two large and highly prospective blocks during the year - the Guayaguayare and St Mary's blocks. On the Guayaguayare block, we were also successfully awarded the operatorship and are finalising the transfer of the full remaining interest of Niko in the block. Both blocks have exciting prospects and we believe they will play a key role in our asset portfolio with plenty of newsflow to offer to our shareholders.

On the Guayaguayare block, we are looking to drill an initial two exploration wells (one shallow and one deep) during 2015 and 2016. We have also commenced exploration programme on the St Mary's block with the audit of existing field infrastructure, facilities and wells currently underway. In addition, we provided the MEEA with the required performance bond of US$8 million in support of the minimum work obligations on the licence.

Strong strategic partnership with LandOcean

We are delighted with our continued partnership with LandOcean, an emerging provider of a wide range of technical and production services, which not only provides us with access to sophisticated oilfield services provider but also additional financial backing and support.

During the previous financial year, we entered into an Integrated Master Services Agreement, whereby LandOcean will act as the preferred oilfield services contractor to Range in Trinidad. Under the first US$5 million purchase order (which was entered into in June 2014), LandOcean provided geological and engineering studies of secondary recovery projects, as follows:

· Screening study of all likely potential horizons and areas that could benefit from waterflooding in all three fields (Morne Diablo, South Quarry and Beach Marcelle);

· Technical review of additional reserves and production rates that could be achieved by waterflooding priority areas, including new well requirements and re-use / recompletion of existing wells. Identification of water volume requirements for waterflooding;

· Cost estimates of subsurface and surface infrastructure requirements for each waterflooding project, plus screening economics of each project;

· In collaboration with Range, identification of four priority waterflood projects (three in Beach Marcelle, and one in Morne Diablo); and

· Joint presentations to Petrotrin and the MEEA of detailed waterflooding plans for these four priority projects.

Subsequently, in December 2014, Range entered into the second purchase order of further US$50 million, which covers a wide range of activities over the coming years.

During the year, LandOcean also acquired Range's drilling business in Trinidad and added four brand new drilling rigs to the fleet, which are expected to be available for operations from Q4 2015 to ramp up Range's drilling activities. The sale of the drilling business has allowed us to focus time and resources on efficiently running Range's upstream assets and growing production, as well as transferring operational performance risk, improving financial stability and planning.

In addition, LandOcean agreed to provide Range with an extended 12 month credit facility on its services, which allowed the Company to commence its drilling programme and make repayments from future cashflows.

We are very grateful to LandOcean for their support and will continue to work with them to achieve further cost savings, optimisation and improved operational efficiencies.

Non-core assets

During the year, we continued with non-core asset rationalisation, and have completed sales of the Texas assets, Citation Resources equity stake, and exit from Puntland. We believe that it was in the best interest of all shareholders as these assets required imminent spending commitments which outweighed the potential return. During the next financial year, we are aiming to dispose of our interests in Guatemala and Georgia, and will keep our position in Colombia under review.

Financial review

As a result of the actions taken by the Board and management, the financial performance during the year has substantially improved compared to the prior year. Despite the overall loss still recorded there is a notable, positive trend in financial performance with particular improvement being seen in key areas between the first and second half of the year:

· The Group's revenue was US$13.2 million (2014: US$21.2 million), a decrease of approximately 38%, whilst Group's gross loss fell by 19% to US$2.9 million (2014: US$3.6 million). Revenues were clearly affected from low oil prices during the year, with an average WTI realised price of US$69.46/bbl (2014: US$101.33/bbl). However, the impact at an operating level was somewhat negated due to the Supplemental Petroleum Tax ("SPT") structure in Trinidad - at WTI oil prices below US$50 per barrel no SPT is payable. The Company continues to monitor the oil price as well as those related markets that could impact the Company's future project and operational development plans;

· The Group's loss after tax was reduced substantially compared to the prior year at US$30.3 million (2014: US$102.5 million);

· There were a number of exceptional and one-off charges during the year (including asset write-downs and loss on disposal) and the Group's net loss before tax from continuing operations prior to any exceptional costs also showed a marked improvement on the prior year at US$20.4 million (2014: US$40.5 million). There was an additional positive trend during the second half of the year which reflected a loss of US$7.9 million (compared to US$12.5 million in the first half);

· General and administrative costs overall decreased by 32% overall during the year and totalled US$9.9 million (2014: US$14.5 million). Notable again is the positive trend during the second half of the year when G&A costs were US$3.2 million (compared to US$6.7 million in the first half). This was achieved as a result of cost cutting measures implemented by the Board;

· The Group's EBITDA also showed improvement half year on half year, falling from a loss of US$16.7 million in H1 to US$6.9 million in H2;

· Net cash at 30 June 2015 was US$10.5 million (2014: US$3.0 million). This increase was largely a result of new equity financing completed during the year;

· Cash outflow from operating activities was broadly stable on the prior year (despite reduction in average oil price) at US$7.0 million (2014: outflow US$6.2 million); and

· Net cash inflow from investing activities was US$0.4 million (2014: outflow of US$8.1 million). Current year inflow was primarily a result of asset sales offsetting the continued investment made in Trinidad during the year.

Summary

Last year we were focused on cutting costs across the Group and driving forward our development programmes in Trinidad with the goal of achieving production and cashflows increase. Despite numerous challenges that we've had to overcome, we believe that the next year we can realise on our potential and unlock the true value of our assets. We have an extremely busy year ahead of us, with plenty of newsflow to offer to our shareholders.

The Company has solid production assets with substantial reserves and potential to significantly increase production; exploration upside; funding in place; and the team committed to growing shareholder value.

On behalf of the Board, management and employees, I would like to thank our loyal shareholders for their support as we progress through the period of high activity. I am extremely grateful to be part of the management team of the Company with such tremendous potential and look forward to focusing on valuable returns for our shareholders.

Yours Faithfully

Yan Liu

Chief Executive

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015
	Note			Consolidated
				2015 US$	2014 US$

Revenue from continuing operations		3		13,152,954	21,185,745

Operating expenses				(6,440,734)	(9,549,610)
Royalties				(4,654,241)	(7,353,237)
Depreciation, depletion and amortisation				(4,917,053)	(7,909,945)
Cost of sales		4a		(16,012,028)	(24,812,792)

Gross loss				(2,859,074)	(3,627,047)
Other income and expenses from continuing operations
Other income		3		428,588	1,221,108
Finance costs		4b		(4,347,575)	(21,797,779)
General and administration expenses		4b		(9,948,494)	(14,485,854)
Assets written-off		4c		(692,929)	(24,267,968)
Exploration expenditure and land fees		4d		(2,202,748)	(1,163,920)
Loss on disposal of subsidiary		4e		(1,491,857)	-
Share of net loss of investments in associates		19		-	(659,400)
Loss before income tax expense from continuing operations				(21,114,089)	(64,780,860)
Income tax expense		6		(1,467,806)	(906,620)
Loss after income tax from continuing operations				(22,581,895)	(65,687,480)
Loss from discontinued operations, net of tax		5a		(7,697,159)	(36,854,510)
Loss for the year attributable to equity holders of Range Resources Limited				(30,279,054)	(102,541,990)
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss
Revaluation of available for sale financial assets		27d		-	325,263
Exchange differences on translation of foreign operations		27c		455,307	(411,110)
Other comprehensive income/(loss) for the year, net of tax				455,307	(85,847)

Total comprehensive loss attributable to equity holders of Range Resources Limited				(29,823,747)	(102,627,837)

Loss per share from continuing operations attributable to the ordinary equity holders of the Company:
Basic loss per share (cents per share)		8a		(0.44)	(1.85)
Diluted loss per share (cents per share)		8b		n/a	n/a

Loss per share attributable to the ordinary equity holders of the Company:
Basic loss per share (cents per share)			8a	(0.59)	(2.89)
Diluted loss per share (cents per share)			8b	n/a	n/a

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015
	Note	Consolidated
		2015 US$		2014 US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents	9		10,530,104	2,977,410
Trade and other receivables	10		5,148,978	5,338,769
Other current assets	11		783,385	728,544
			16,462,467	9,044,723
Non-current assets classified as held for sale	12		6,000,000	11,000,000
TOTAL CURRENT ASSETS			22,462,467	20,044,723

NON-CURRENT ASSETS
Deferred tax asset	6		286,693	462,325
Available for sale financial assets	13		446,000	876,347
Goodwill	15		46,198,974	46,198,974
Property, plant and equipment	16		1,502,442	11,254,269
Exploration & evaluation expenditure	17		668,951	523,605
Producing assets	18		90,350,492	82,517,820
Investments in associates	19		-	2,779,476
Other non-current assets	20		-	1,500,000
TOTAL NON-CURRENT ASSETS			139,453,552	146,112,816

TOTAL ASSETS			161,916,019	166,157,539

CURRENT LIABILITIES
Trade and other payables	21		13,654,195	8,705,005
Current tax liabilities			296,894	310,335
Borrowings	22a		7,518,077	-
Option liability	22b		808,083	2,189,913
Provisions	23		734,858	696,244
TOTAL CURRENT LIABILITIES			23,012,107	11,901,497

NON-CURRENT LIABILITIES
Deferred tax liabilities	24		43,359,199	44,376,033
Employee service benefits	25a		521,257	584,746
TOTAL NON-CURRENT LIABILITIES			43,880,456	44,960,779
TOTAL LIABILITIES			66,892,563	56,862,276

NET ASSETS			95,023,456	109,295,263

EQUITY
Contributed equity	26		363,205,277	352,599,569
Reserves	27		29,748,880	27,862,006
Accumulated losses			(297,930,701)	(271,166,312)
TOTAL EQUITY			95,023,456	109,295,263

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2015

Consolidated	Note	Contributed Equity	Accumulated Losses	Foreign Currency Translation Reserve	Available for Sale Investment Revaluation Reserve	Share-based Payment Reserve	Option Premium Reserve	Total Equity
		US$	US$	US$	US$	US$	US$	US$
Balance at 1 July 2013		314,199,634	(168,624,322)	3,415,742	(325,263)	14,085,042	9,815,752	172,566,585
Other comprehensive income/(loss)		-	-	(411,110)	325,263	-	-	(85,847)
Loss attributable to members of the company		-	(102,541,990)	-	-	-	-	(102,541,990)
Total comprehensive loss for the year		-	(102,541,990)	(411,110)	325,263	-	-	(102,627,837)
Transactions with owners in their capacity as owners:
Issue of share capital	26	32,467,157	-	-	-	-	-	32,467,157
Unissued share capital	26	6,000,000	-	-	-	-	-	6,000,000
Exercise of options	26	652,778	-	-	-	-	814,761	1,467,539
Cost of share-based payments		-	-	-	-	141,819	-	141,819
Issue costs	26	(720,000)	-	-	-	-	-	(720,000)
Balance at 30 June 2014		352,599,569	(271,166,312)	3,004,632	-	14,226,861	10,630,513	109,295,263

		US$	US$	US$	US$	US$	US$	US$
Balance at 1 July 2014		352,599,569	(271,166,312)	3,004,632	-	14,226,861	10,630,513	109,295,263
Other comprehensive income/(loss)		-	-	455,307	-	-	-	455,307
Loss attributable to members of the company		-	(30,279,054)	-	-	-	-	(30,279,054)
Total comprehensive loss for the year		-	(30,279,054)	455,307	-	-	-	(29,823,747)
Transactions with owners in their capacity as owners:
Issue of share capital	26	11,044,172	-	-	-	-	-	11,044,172
Exercise of options	26	923,880	-	-	-	-	1,426,850	2,350,730
Cancellation of partly paid shares	26	(1,362,344)	1,362,344	-	-	-	-	-
Expired options - Reclassified		-	2,152,321	-	-	(2,152,321)	-	-
Cost of share-based payments		-	-	-	-	2,157,038	-	2,157,038
Balance at 30 June 2015		363,205,277	(297,930,701)	3,459,939	-	14,231,578	12,057,363	95,023,456

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2015
	Note	Consolidated
		2015	2014
		US$	US$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers		13,313,284	21,786,510
Payments to suppliers and employees		(19,472,258)	(19,638,193)
Payments for exploration and evaluation expenditure		(392,219)	(1,163,920)
Income taxes paid		(208,536)	(2,236,840)
Interest received		3,390	10,293
Interest & other finance costs		(198,925)	(4,979,631)

Net cash outflow from operating activities	31	(6,955,264)	(6,221,781)

CASH FLOWS FROM INVESTING ACTIVITIES
Payment for property, plant & equipment		(1,576,298)	(857,934)
Proceeds from sale of available for sale financial assets		450,643	-
Payment for producing assets		(3,992,670)	(3,146,149)
Payment to investments in associates		-	(2,715,517)
Payments for exploration and evaluation assets		(145,346)	(683,887)
Proceeds from sale of assets held-for-sale		5,202,379	-
Receipts from loan repayments/(Loans to external parties)		500,000	(700,000)

Net cash inflow/(outflow) from investing activities		438,708	(8,103,487)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of equity		8,890,800	16,002,037
Payment of equity issue costs		-	(720,000)
Proceeds from borrowings		5,250,000	16,407,790
Repayment of borrowings		-	(16,119,380)

Net cash inflow from financing activities		14,140,800	15,570,447

Net increase in cash and cash equivalents		7,624,244	1,245,179
Net foreign exchange differences		(71,550)	-
Cash and cash equivalents at beginning of financial year		2,977,410	1,732,231
Cash and cash equivalents at end of financial year	9	10,530,104	2,977,410

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Note 1: Statement of Significant Accounting Policies

These financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Range Resources Limited is a for-profit entity for the purpose of preparing the financial statements.

The financial statements cover the Group consisting of Range Resources Limited and its controlled entities. Separate financial statements of Range Resources Limited are no longer presented as a result of a change to the Corporations Act 2001. Financial information for Range Resources Limited as an individual entity is disclosed in Note 34. Range Resources Limited is a listed public company, incorporated and domiciled in Australia.

The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial statements. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation

Reporting Basis and Conventions

The financial statements have been prepared on an accruals basis and are based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Compliance with IFRS

The financial statements of Range Resources Limited also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The financial statements were approved by the Board of Directors on 29 September 2015.

Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "Functional Currency"). The consolidated financial statements are presented in United States Dollars (USD), which is Range Resources Limited's functional and presentation currency.

Going Concern

The Directors have prepared the financial statements on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.

As disclosed in the financial statements, the Group incurred losses of US$30,279,054 for the year ending 30 June 2015. The Group also had net cash outflows from operating and investing activities for the year totalling US$6,516,556, and a net current liability position (excluding assets held for sale) of US$6,549,639.

As announced on 3 September 2015, post year end, the Group received Tranche 2 subscription proceeds of US$22.1 million in cash from Sibo financing. This was the final cash receipt following the issue of 1,822,620,912 new ordinary shares to Beijing Sibo Investment Management LP. In addition to this, on 11 December 2014 Range announced a proposed US$50m trade financing with Sinosure. These funding arrangements are more than sufficient to cover Range's cash requirements for the 12 months from date of sign-off.

The Company will seek to rationalise the portfolio of non-core assets and redeploy capital to maximise current production from its core assets in Trinidad and pursue growth opportunities that enhance cash generation and returns to shareholders.

The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the Group does not continue as a going concern.

Adoption of new and revised accounting standards

In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period. The group has applied the following standards and amendments for the first time for their annual reporting period commencing 1 July 2014:

Note 1: Statement of Significant Accounting Policies (continued)

· AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets

· AASB 2013-4 Amendments to Australian Accounting Standards - Novation of Derivatives and Continuation of Hedge Accounting

· Interpretation 21 Accounting for Levies

· AASB 2014-1 Amendments to Australian Accounting Standards

The adoption of these standards did not have any significant impact on the current period or any prior period and is not likely to affect future periods.

The impact of standards and interpretations that have been published but are not mandatory for 30 June 2015 reporting periods and have not been early adopted are disclosed within note 39. There were no standards that were early adopted as of 30 June 2015.

Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, and have been applied consistently by the Group.

(a) Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Range Resources Limited ("Parent Entity" or "Company") as at 30 June 2015 and the results of all subsidiaries for the year then ended. Range Resources Limited and its subsidiaries together are referred to as the "Group".

Subsidiaries are all those entities (including special purpose entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its investment with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

Where controlled entities have entered or left the Group during the year, their operating results have been included/excluded from the date control was obtained or until the date control ceased. A list of controlled entities is contained in Note 14 to the financial statements. All controlled entities have a June financial year-end.

All inter-company balances and transactions between entities in the Group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the Company.

Associates are all entities over which the Group has significant influence but not control or joint control, generally accompanying a shareholding of between 20-50% of the voting rights. Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting, after initially being recognised at cost.

(b) Income tax

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the reporting date within each jurisdiction.

Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Deferred tax is credited in profit or loss except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are

Note 1: Statement of Significant Accounting Policies (continued)

offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Owned assets

Plant and equipment are measured on the historical cost basis less accumulated depreciation and impairment losses.

The cost of fixed assets constructed within the Group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

Oil and gas assets

These properties represents the accumulation of all exploration, evaluation and development expenditure, pre-production development costs and ongoing costs of continuing the develop reserves for production incurred by or on behalf of the entity in relation to areas of interests.

Where further development expenditure is incurred in respect of a property after the commencement of production, such expenditure is carried forward as part of the cost of that property only when expected future economic benefits are to be received, otherwise such expenditure is classified as part of the cost of production.

Depreciation

The depreciable amount of all fixed assets including capitalised lease assets is depreciated on a straight-line basis over their useful lives to the Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable asset are:

Class of Fixed Asset	Depreciation Rate
Plant & equipment	11.25% - 33%
Production equipment	10 - 20%
Motor vehicles, furniture & fixtures	25 - 33%
Leasehold improvements	10 - 12.50%

The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the asset's employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

An asset's carrying amount is written down to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Note 1: Statement of Significant Accounting Policies (continued)

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in profit or loss. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to accumulated losses.

(d) Exploration and evaluation expenditure and the recognition of assets

Generally, exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

The carrying values of expenditures carried forward are reviewed for impairment at each reporting date when the facts, events or changes in circumstances indicate that the carrying value may be impaired.

Accumulated expenditures are written off to profit or loss to the extent to which they are considered to be impaired.

Range Resources Limited is applying AASB 6 Exploration for and Evaluation of Mineral Resources which is equivalent to IFRS 6. The carrying value of exploration and evaluation expenditure is historical cost less impairment.

It's the Group's policy to capitalise exploration expenditure for all areas of interest apart from those in Somalia and Colombia. Exploration costs incurred in respect of the Group's Somalian and Colombian interests are expensed as incurred.

(e) Producing assets

Upon the commencement of commercial production from each identifiable area of interest, the exploration and evaluation expenditure incurred up to that point is impairment tested and then reclassified to producing assets.

When production commences, the accumulated costs for the relevant area of interest are amortised on a units of production method based on the ratio of actual production to remaining proved reserves (P1) as estimated by independent petroleum engineers over the life of the area according to the rate of depletion of the economically recoverable reserves.

Subsequent costs are included in the asset's carrying amount, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit and loss during the financial period in which they are incurred.

The carrying amount of producing assets is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount of an asset is the greater of its fair value less costs to sell and its value in use. In assessing value in use, an asset's estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where an asset does not generate cash flows that are largely independent from other assets or groups of assets, the recoverable amount is determined for the cash generating unit to which the asset belongs. For producing assets, the estimated future cash flows for the value-in-use calculation are based on estimates, the most significant of which are 2P hydrocarbon reserves, future production profiles, commodity prices, operating costs and any future development costs necessary to produce the reserves. Under a fair value less costs to sell calculation, future cash flows are based on estimates of 2P hydrocarbon reserves. Estimates of future commodity prices are based on the Group's best estimate of future market prices with reference to external market analysts' forecasts, current spot prices and forward curves. Future commodity prices are reviewed at least annually.

An asset's carrying amount is written down to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Note 1: Statement of Significant Accounting Policies (continued)

The Group records the present value of the estimated cost of legal and constructive obligations to restore operating locations in the period in which the obligation arises. The nature of restoration activities includes the removal of facilities, abandonment of wells and restoration of affected areas. A restoration provision is recognised and updated at different stages of the development and construction of a facility and then reviewed on an annual basis. When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying amount of the related exploration and evaluation/development assets.

Over time, the liability is increased for the change in the present value based on a post-tax discount rate appropriate to the risk inherent in the liability. The unwinding of the discount is recorded as an accretion charge within finance costs. The carrying amount capitalised in oil and gas properties is depreciated over the useful life of the related asset.

Costs incurred that relate to an existing condition caused by past operation and do not have a future economic benefit are expensed.

(f) Financial instruments

The Group's financial instruments include cash and cash equivalents, trade and other receivables and available-for-sale financial assets.

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition, these instruments are measured as set out below.

The Group classifies its financial assets in the following categories: loans and receivables and available-for-sale investments. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets include non-derivative financial assets designated in this category not included in any of the other categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to the available for sale investment revaluation reserve in equity. Investments are designated as available-for-sale if they do not have fixed maturities and fixed determinable payments and management intends to hold them for the medium to long term.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities held at cost less impairment, including recent arm's length transactions, reference to similar instruments and option pricing models.

Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are analysed between translation differences resulting from changes in amortised cost of the security and other changes in the carrying amount of the security. The translation differences related to changes in the amortised cost are recognised in profit or loss, and other changes in carrying amount are recognised in the available for sale investment revaluation reserve in equity. Changes in the fair value of other monetary and non-monetary securities classified as available-for-sale are recognised in equity.

Impairment of assets

The Group assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered an indicator that the securities are impaired. If any

Note 1: Statement of Significant Accounting Policies (continued)

such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity and included in profit or loss. Impairment losses recognised in the statement of profit or loss and other comprehensive income on equity instruments classified as available-for-sale are not reversed through profit or loss.

Recognition and de-recognition

Regular purchases and sales of financial assets are recognised on trade-date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs. Financial assets are de-recognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and reward of ownership.

When the securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity are included in profit or loss as gains and losses for investment securities.

(g) Foreign currency transactions and balances

Functional and presentation currency

The functional currency of each entity within the Group is determined using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in United States dollars which is the Company's functional and presentation currency.

Transaction and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in profit or loss.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity; otherwise the exchange difference is recognised in profit or loss.

(h) Provisions

Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects the current market assessments of the time value of money and the risk specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

(i) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

Note 1: Statement of Significant Accounting Policies (continued)

(j) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Trade receivables are generally due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account (provision for impairment of trade receivables) is used when there is objective evidence that the Group will not be able to collect all amounts due, according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of impairment allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

The amount of impairment loss is recognised in profit or loss within other expenses. When a trade receivable, for which an impairment allowance had been recognised, becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.

(k) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. Revenue is recognised when the amount of revenue can be reliably measured, and it is probable that future economic benefits will flow to the Group.

Revenue from the sale of oil and gas and related products is recognised when the Group has transferred to the buyer the significant risks and rewards of ownership and the amounts can be measured reliably. In the case of oil, this usually occurs at the time of lifting.

Interest revenue is recognised on a time proportion basis taking into account the interest rates applicable to the financial assets.

(l) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the consolidated statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(m) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Note 1: Statement of Significant Accounting Policies (continued)

(n) Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement for disclosure purposes.

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is the current bid price.

The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash follows at the current market interest rate that is available to the Group for similar financial instruments.

(o) Investments in associates

Investments in associates are accounted for using the equity method of accounting in the consolidated financial statements.

Under the equity method, the investment in the associate is carried in the consolidated statement of financial position at cost plus post-acquisition changes in the Group's share of net assets of the associate.

After application of the equity method, the Group determines whether it is necessary to recognise any additional impairment loss with respect to the Group's net investment in the associate.

The Group's share of the associate post-acquisition profits or losses is recognised in the statement of profit or loss and other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group's share of losses in the associate equals or exceeds its interest in the associate, including any unsecured long-term receivables and loans, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

The reporting dates of the associate and the Group are identical and the associate's accounting policies conform to those used by the Group for like transactions and events in similar circumstances.

(p) Prepayments for investments

Prepayments for acquisitions of financial assets are recorded at the fair value of consideration to acquire the assets.

On satisfaction of all terms of the acquisition contract have been satisfied the prepayment is transferred and accounted for as an investment.

(q) Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(r) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the financial year but not distributed at reporting date.

(s) Contributed equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Note 1: Statement of Significant Accounting Policies (continued)

(t) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares.

(u) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the managing director.

(v) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which they are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

(w) Intangible assets (goodwill)

Goodwill is measured as described in note 1(v). Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose, identified according to operating segments (note 30).

(x) Share-based payments

The fair value of options granted is recognised as an expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted, which includes any market performance conditions and the impact of any non-vesting conditions but excludes the impact of any service and non-market performance vesting conditions.

(y) Employee benefits

Wages and salaries and annual leave

Liabilities for wages and salaries, including non-monetary benefits are recognised in current liabilities in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Long service leave

The liability for long service leave is recognised in current and non-current liabilities, depending on the unconditional right to defer settlement of the liability for at least 12 months after the reporting date. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Note 1: Statement of Significant Accounting Policies (continued)

(z) Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased assets, and operating leases, under which the lessor effectively retains substantially all such risks and benefits.

Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased assets, or if lower, the present value of minimum lease payments. Lease payments are allocated between the principal component of the lease liability and the finance costs, so as to achieve a constant rate of interest on the remaining balance of the liability.

Leased assets acquired under a finance lease are depreciated over the asset's useful life or over the shorter of the asset's useful life and the lease term if there is no reasonable certainty that the company will obtain ownership at the end of the lease term.

Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-line basis over the term of the lease.

(aa) Borrowings

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are classified as non-current.

(bb) Compound Financial Instruments

Compound financial instruments issued by the Group comprise convertible notes that can be converted to ordinary shares at the option of the holder, when the number of shares to be issued is fixed.

The liability component of a compound financial instrument is recognised initially at the fair value of a similar liability that does not have an equity conversion option. The equity component is recognised initially at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the effective interest method. The equity component of a compound financial instrument is not remeasured subsequent to initial recognition.

Interest related to the financial liability is recognised in profit or loss. On conversion the financial liability is reclassified to equity and no gain or loss is recognised.

Convertible notes that can be converted to share capital at the option of the holder and where the number of shares is variable, contains an embedded derivative liability. The embedded derivative liability is calculated (at fair value) first and the residual value is assigned to the debt host contract. The embedded derivative is subsequently measured at fair values and movements are reflected in the profit and loss.

Certain convertible notes issued by the Group which include embedded derivatives (option to convert to variable number of shares in the Group are recognised as financial liabilities at fair value through profit or loss. On initial recognition, the fair value of the convertible note will equate to the proceeds received and subsequently the liability is measured at fair value at each reporting period until settlement. The fair value movements are recognised on the profit and loss as finance costs.

(cc) Finance costs

Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred.

Note 1: Statement of Significant Accounting Policies (continued)

(dd) Non-current assets classified as held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell. For non-current assets to be classified as held for sale, they must be available for immediate sale in their present condition and their sale must be highly probable.

An impairment loss is recognised for any initial or subsequent write down of the non-current assets to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of a non-current asset, but not in excess of any cumulative impairment loss previously recognised.

Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of assets held for sale continue to be recognised.

Non-current assets classified as held for sale are presented separately on the face of the consolidated statement of financial position, in current assets. The liabilities of disposal groups classified as held for sale are presented separately on the face of the statement of financial position, in current liabilities.

(ee) Discontinued operations

A discontinued operation is a component of the Group's business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which:

- represents a separate major line of business or geographical area of operations

- is part of a single co-ordinated plan to dispose of a separate major line of business or geographical are of operations.

- is a subsidiary acquired exclusively with a view to re-sale.

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale.

When an operation is classified as a discontinued operation, the comparative consolidated statement of profit or loss and other comprehensive income is re-presented as if the operation had been discontinued from the start of the comparative year.

Note 2: Critical accounting estimates and judgements

The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Areas involving a higher degree of judgement or complexity, or areas where estimations and assumptions are significant to the financial statements are disclosed here.

Exploration and evaluation expenditure

Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided certain conditions listed in Note 1(d) are met. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. These calculations and reviews require the use of assumptions and judgement. The related carrying amounts are disclosed in Note 17.

Producing asset expenditure

The classification of exploration and evaluation expenditure to producing assets is based on the time of first commercial production. Producing asset expenditure for each area of interest is carried forward as an asset provided certain conditions listed in Note 1(e) are met and depreciated on a unit of production basis on P1 reserves. P1 reserves have been determined by an independent expert.

Producing assets are assessed for impairment when facts and circumstances suggest that the carrying amount of a production asset may exceed its recoverable amount. These timings, calculations and reviews require the use of assumptions and judgement. The related carrying amounts are disclosed in Note 18.

Note 2: Critical accounting estimates and judgements (continued)

Investment in associate - LAR

In January 2013, Range acquired a stake in Citation Resources Limited (ASX: CTR) which held a 70% interest in Latin American Resources ("LAR"). Subsequently, Range acquired a direct 20% interest in LAR.

As at 30 June 2014, Range had a 6.33% interest in CTR and CTR had a 60% interest in LAR. Combined with the direct shareholding this gives Range an effective 24% interest in LAR, giving Range significance influence over the group. At 30 June 2014 the carrying value of the Group's 20% interest in LAR has been impaired down to US$2,779,476 which represents the Group's share of 20% of LAR net assets - refer Note 19. The impairment recognised in relation to LAR at 30 June 2014 was US$1,410,138, which is included in the consolidated statement of profit or loss and other comprehensive income within assets written-off.

During the year ended 30 June 2015, the asset was written down by a further US$600,118 to a value of US$2,179,358 and transferred to assets held for sale following the board's decision to actively market the asset. Once transferred to held for sale, a further write down of US$1,179,358 to US$1,000,000 was recognised

Provision for impairment of trade and other receivables

During the prior year, and given uncertainty over the counterparty's ability to repay, a provision for impairment of US$2,489,443 was recognised in relation to miscellaneous other receivables totalling US$3,179,394. A further provision of $17,937 was recognised in the current financial year.

Provision for impairment of other non-current receivable

In the year ended 30 June 2014, the Company recognised an impairment of US$7,354,469 with respect to the loan which had been advanced to International Petroleum Limited, reducing the carrying value of the loan to US$1,500,000 at 30 June 2014 as set out in note 20. US$500,000 of the balance was received in the year ended 30 June 2015, with the remaining balance exchanged into equity in IOP with a carrying value of $346,000.

Impairment of goodwill and producing assets

The Group tests annually whether goodwill or the producing assets has suffered any impairment in accordance with the accounting policies stated in notes 1(e) and 1(w). The recoverable amount of the cash-generating unit to which the assets belong is estimated based on the present value of future cash flows. The expected future cash flow estimation is always based on a number of factors, variables and assumptions, the most important of which are estimates of reserves, future production profiles, commodity prices and costs. In most cases, the present value of future cash flows is most sensitive to estimates of future oil price and discount rates. A change in the modelled assumptions in isolation could materially change the recoverable amount. Refer to note 15 for details of these key assumptions.

Deferred tax liability

Upon acquisition of SOCA Petroleum Ltd, in accordance with the requirement of AASB 112 Income Taxes, a deferred tax liability of US$46,979,878 was recognised in relation to the difference between the carrying amount for accounting purposes of deferred development assets and their actual cost base for tax purposes. The carrying value of this deferred tax liability has reduced to US$43,359,199 at 30 June 2015. In the event that the manner by which the carrying value of these assets is recovered differs from that which is assumed for the purpose of this estimation, the associated tax charges may be significantly less than this amount.

Impairment of assets held-for-sale

An impairment loss in respect of assets held-for-sale is generally measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on re-measurement are recognised in profit or loss. Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted.

During 2014, as part of the Company's strategy to rationalise non-core assets, the Company committed to a plan to dispose its shares in Strait Oil & Gas (UK) Limited ("Strait").

In the current financial year, Range decided to actively market its Guatemalan assets for sale.

At 30 June 2015 impairment losses of US$34,281,987 and US$1,779,476 have been recognised in respect of Strait and the Guatemalan asset, respectively.

Note 2: Critical accounting estimates and judgements (continued)

Share based payments transactions

The Group measures the cost of equity-settled share-based payment transactions with employees by reference to the fair value of the equity instruments at the grant date. The fair value is determined using a Black-Scholes model. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity.

Classification of operations to discontinued

The assets classified as discontinued operations represent separate major lines of business and geographical areas of operations.

Note 3: Revenue		Consolidated
			2015 US$	2014 US$
	From continuing operations
	- revenue from sale of oil		13,152,954	21,185,745

	Other income
	- interest income (i)		3,390	1,217,890
	- other income		422,198	3,218
			425,588	1,221,108

(i) 2014 figure relates primarily to the loan facility and interest revenue as per final settlement agreement between Citation Resources Ltd and the Group.

Note 4: Expenses				Consolidated
			2015 US$		2014 US$
	Loss before income tax includes the following specific expenses:

(a)	Cost of sales
	- Costs of production		3,125,464		4,705,948
	- Royalties		4,654,241		7,353,237
	- Staff costs		3,315,271		4,843,662
	- Oil and gas properties depreciation, depletion and amortisation		1,781,212		1,687,468
	- Amortisation in relation to fair value uplift of oil properties on business combination		3,135,840		6,222,477
			16,012,028		24,812,792
(b)	Expenses

	Finance costs
	- Interest and premium paid on financial liabilities at fair value		2,550,028		11,199,869
	- Fair value movement of option liability		(127,883)
	- Facility fees settled in shares		1,575,637		2,123,709
	- Loss on equity swap		-		3,494,570
	- Interest expense		349,793		2,902,249
	- Corporate advisory fee		-		2,077,382
	Total finance costs		4,347,575		21,797,779


Note 4: Expenses (continued)
	General and administration expenses
	- Consultants		1,964,024		3,421,400
	- Other expenses		1,205,399		1,597,262
	- Share based payments		2,157,037		1,673,558
	- Share based payments -employee and consultant shares		580,455		-
	- Foreign exchange (gain)/loss		(134,789)		1,468,581
	- Directors' and officers' fees and benefits		999,571		1,115,524
	- Travel expenditure		585,994		1,113,233
	- Legal fees		552,459		1,293,946
	- Corporate management services		303,327		780,718
	- Insurance		259,384		568,931
	- Marketing and public relations		200,134		461,902
	- Share registry expenses and listing costs		402,824		655,537
	- Audit fees		271,754		225,040
	- Depreciation		1,192		62,224
	- Loss on disposal of available for sale asset		496,958		-
	- Taxation advice		102,771		47,998
	Total general and administration expenses		9,948,494		14,485,854

(c)	Asset values written-down
	Asset values written-down
	- Impairment of restricted deposits		-		3,480,000
	- Impairment of current receivables		17,937		2,489,443
	- Impairment of non-current receivables		20,992		6,549,517
	- Impairment of investment in associate		-		1,410,138
	- Impairment of Colombian exploration expenditure		-		9,613,918
	- Impairment of investment in available for sale financial assets		654,000		724,952
	Total assets written-down		692,929		24,267,968

(d)		Exploration Expenditure
		Puntland	314,982			1,163,920
		Trinidad (i)	1,810,529			-
		Colombia	77,237			-
		Total exploration expenses	2,202,748			1,163,920

(e)		Loss on disposal of subsidiary
		Range Resources Drilling Limited	1,491,857			-
		Total loss on disposal	1,491,857			-

Details of loss on sale of subsidiaries

	Consideration received	4,870,000
	Carrying amount of net assets sold	6,319,358
	Loss on sale	(1,449,358)
	Reclassification of FX reserve	(42,499)
	Income tax expense on gain	-
	Loss on sale	(1,491,857)

(i) Amounts expensed in the year in Trinidad relate to land fees in relation to Guayaguayare and St Mary's for which the company policy is to expense.

Note 5: Discontinued operations

In 2013, the Company indicated that it was in the process of disposing of the Company's North Chapman Ranch and East Texas Cotton Valley assets hence the transfer from producing assets to assets classified as held-for-sale in that accounting period. This sale was completed on 24 March 2015 through a disposal of Range Australia Resources (US) Limited.

During the 2014 financial year, the Company also committed to a plan to dispose its shares in the unlisted company Strait Oil & Gas (UK) Limited, representing 45% of the shares on issue of Strait to place greater focus on the Group's core producing assets in Trinidad. This has been written down by a further US$5,000,000 in the current financial period (2014: US$29,281,987) as Range continues to search for a buyer for the asset.

Impairment losses of US$6,779,476 (2014 - US$37,244,836) for write-downs of the disposal group to the lower of its carrying amount and its recoverable amount have been included in loss on discontinued operations (see note 5a). The impairment losses have been applied to reduce the carrying amount of the assets held-for-sale within the disposal group. There is no cumulative income or expenses included in other comprehensive income relating to the disposal group.

		2015 US$	2014 US$
(a) Results of discontinued operations
	Revenue	238,194	553,965
	Cost of sales	(104,799)	(97,652)
	Asset write off	(6,779,476)	(37,244,836)
	Other expenses	(949,169)	(610,285)
	Results from operating activities	(7,595,250)	(37,398,808)
	Income tax (expense)/benefit	-	544,298
	Results from operating activities, after tax	(7,595,250)	(36,854,510)
	Loss on sale of subsidiary asset	(101,909)	-
	Loss from discontinued operations	(7,697,159)	(36,854,510)
	The loss from the discontinued operations of US$7,697,159 (2014: US$36,854,510) is attributable entirely to the owners of the Company.
(b) Cash flows gained from/(used in) discontinued operations
	Net cash used in operating activities	(801,003)	(2,069,088)
	Net cash flow for the year	(801,003)	(2,069,088)

	Consideration received
	-Cash	389,172
	-Debts forgiven	147,311
	-Shares	155,885
	Total disposal consideration	692,368
	Less: Carrying amount of net assets sold	(794,277)
	Loss on sale	(101,909)
	Income tax expense on gain	-
	Loss on sale	(101,909)

Note 6: Income Tax Expense

		Consolidated
		2015 US$	2014 US$
(a)	Income tax expense

	Current tax	624,618	1,753,045
	Deferred tax	843,188	(865,005)
	Adjustments for current tax of prior periods	-	(525,718)
		1,467,806	362,322

	Income tax expense/(benefit) is attributable to:
	Profit/(loss) from continuing operations	1,467,806	906,618
	Profit/(loss) from discontinued operations	-	(544,296)
	Aggregate income tax expense	1,467,806	362,322

(b)	The prima facie tax on profit from ordinary activities before income tax is reconciled to the income tax as follows:	(28,811,248)	(102,179,666)

	Prime facie tax payable on profit from ordinary activities before income tax at 30% (2014: 30%)
	- Group	(8,643,374)	(30,653,900)
		(8,643,374)	(30,653,900)
	Add:
	Tax effect of:
	- Other taxes	477,852	2,065,308
	- Expenses not deductible for tax	7,752,706	29,066,976
	- Income not assessable for tax	(3,757,145)	(4,061,284)
	- Tax losses not brought to account	1,938,572	494,731
	- Benefit of tax losses not previously recognised	3,608,262	2,128,535
	- Deferred tax assets not brought to account	2,315,848	2,835,615
	- Differences in tax rates	(2,224,915)	(987,941)
	- Prior year adjustment	-	(525,718)
		1,467,806	362,322
	Unrecognised Deferred tax asset
	- Capital losses	1,084,219	295,658
	- Revenue losses	10,033,815	8,797,175
	- Other	3,265,732	1,068,076
		14,383,766	10,160,909

Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in Note 1(b) occur.

Note 6: Income Tax Expense (continued)

		Consolidated
		2015 US$	2014 US$
(c)	Recognised deferred tax assets
	- temporary differences	286,693	462,325
		286,693	462,325
	Recognised deferred tax liabilities
	- Accelerated depreciation	(11,039,440)	(9,365,463)
	- DTL arising on business combination	(32,319,759)	(35,010,570)
	Net deferred tax liabilities	(43,359,199)	(44,376,033)

Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in Note 1(b) occur.

Note 7: Auditors' Remuneration

	Consolidated
	2015 US$	2014 US$
Remuneration of the auditor of the Parent Entity for:
- auditing or reviewing the financial report by BDO Audit (WA) Pty Ltd	216,866	144,894
- non-audit services provided by a related entity of BDO Audit (WA) Pty Ltd in respect to Parent Entity's tax compliance.	72,570	47,998
Total remuneration for the Parent Entity	289,436	192,892
Remuneration of the auditors of the subsidiaries:
- auditing or reviewing the financial report by BDO UK	3,933	-
- auditing or reviewing the financial report by BDO Barbados	13,030	15,697
- auditing or reviewing the financial report by BDO Trinidad	40,530	64,449
Total remuneration for the subsidiaries	57,493	80,146

Note 8: Earnings Per Share

		Consolidated
		2015 US cents	2014 US cents

(a)	Basic loss per share

	(Loss) per share from continuing operations attributable to the ordinary equity holders of the company	(0.44)	(1.85)
	(Loss) per share attributable to the ordinary equity holders of the company	(0.59)	(2.89)

(b)	Diluted loss per share

	(Loss) per share from continuing operations attributable to the ordinary equity holders of the company	n/a	n/a
	(Loss) per share attributable to the ordinary equity holders of the company	n/a	n/a

(c)	Reconciliation of loss used in calculating earnings per share

	Basic/ Diluted loss per share
	Loss from continuing operations attributable to the ordinary equity holders of the company	(22,581,895)	(65,687,480)
	Loss attributable to the ordinary equity holders of the company	(30,279,054)	(102,541,990)

(d)	Weighted average number of shares used as the denominator	2015 No.	2014 No.
	Weighted average number of ordinary shares used as the denominator in calculating basic EPS	5,095,406,444	3,553,499,382

Effect of dilutive securities
Options on issue at reporting date could potentially dilute earnings per share in the future. The effect in the current year is to reduce the loss per share hence they are considered anti-dilutive. Accordingly the diluted loss per share has not been disclosed.

Note 9: Cash and Cash Equivalents

	Consolidated
	2015 US$	2014 US$

Cash at bank and on hand	10,530,104	2,977,410

Risk exposure

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 35.

Note 10: Trade and Other Receivables

	Consolidated
	2015 US$	2014 US$
Current
Other receivables
- trade receivables (i)	672,331	1,258,117
- accrued revenue (ii)	-	102,825
- goods and services tax	3,820,265	3,287,876
- other debtors (iii)	3,145,825	3,179,394
- less: provision for impairment	(2,489,443)	(2,489,443)
	5,148,978	5,338,769

Fair value approximates the carrying value of trade and other receivables at 30 June 2015 and 30 June 2014.

(i) Trade receivables are generally due for settlement within 30 days. They are presented as current assets unless collection is not expected for more than 12 months after the reporting date. Trade receivables are neither past due nor impaired.

(ii) Accrued revenues relate to the Petrotrin overriding royalty refundable in the Trinidad subsidiaries.

(iii) Other debtors are comprised primarily of advances to unrelated third parties. Given the uncertainty over the likelihood of repayment these advances have been included within the provision for impairment raised at 30 June 2015 and 30 June 2014.

Risk exposure

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 35.

Note 11: Other Current Assets

	Consolidated
	2015 US$	2014 US$
Current
Prepayments	352,724	728,544
Other assets	430,661	-
	783,385	728,544

Note 12: Assets Held-for-Sale

Assets classified as held for sale are as follows:

	Consolidated
	2015 US$	2014 US$

Strait Oil & Gas (UK) Limited - 45% equity interest	5,000,000	10,000,000
Range Australia Resources (US) Limited - 100% owned subsidiary	-	1,000,000
Latin American Resources - 20% equity interest	1,000,000	-
Total	6,000,000	11,000,000

Note 12: Assets Held-for-Sale (continued)

Movements in assets classified as held for sale are as follows:

Opening net book amount	11,000,000	8,769,792
Transfer from investment in associate (note 19)	2,179,358	39,281,987
Additions	-	193,057
Sold in period	(1,000,000)	-
Impairment loss relating to discontinued operations	(6,179,358)	(37,244,836)
Closing net book amount	6,000,000	11,000,000

Impairment losses of US$6.8 million for write-downs of the disposal group to the lower of its carrying amount and its recoverable amount have been included in 'loss on discontinued operations' (see note 5). The impairment losses have been applied to reduce the carrying amount of the assets held-for-sale within the disposal group. There is no cumulative income or expenses included in other comprehensive income relating to the disposal group.

Note 13: Financial Assets Available-For-Sale

	Consolidated
	2015 US$		2014 US$
Listed investments, at fair value
- Interest in other corporations	446,000		876,347
Total available-for-sale financial assets	446,000		876,347

Movement in Financial Assets Available-for-Sale
Opening balance		876,347	822,751
Shares received on settlement of loan receivable		171,254	3,762,367
Acquisitions		-	1,207,598
Shares disposed of to settle liabilities		-	(3,720,555)
Foreign exchange variance		-	59,021
Shares sold in period		(947,601)	-
Fair value movement recognised in equity		-	(529,883)
Transferred from other current assets (note 20)		1,000,000	-
Impairment recognised in profit and loss		(654,000)	(724,952)
Closing balance		446,000	876,347

Available-for-sale financial assets comprise investments in the ordinary share capital of various entities. There are no fixed returns or fixed maturity date attached to these investments.

Risk exposure

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 35.

Note 14: Controlled Entities

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with accounting policy described in Note 1(a).

Controlled Entities Consolidated	Country of Incorporation	Percentage Owned (%)
		30 June 2015	30 June 2014
Subsidiaries of Range Resources Limited:
Westblade Pty Ltd (i)	Australia	-	100
Donnybrook Gold Pty Ltd (i)	Australia	-	100
Range Australia Resources (US) Ltd⁽ⁱⁱ⁾	USA	-	100
Range Resources (Barbados) Limited	Barbados	100	100
SOCA Petroleum Limited	Barbados	100	100
Range Resources Drilling Services Limited	Trinidad	-	100
West Indies Exploration Company Limited	Trinidad	100	100
Range Resources Trinidad Limited	Trinidad	100	100
Los Bajos Oil Limited (iii)	Trinidad	-	100
Range Resources (Barbados) GY Limited	Barbados	100	100
Range Resources St. Mary's Limited	Trinidad	100	-
Range Resources GY Shallow Limited	Trinidad	100	100
Range Resources GY Deep Limited	Trinidad	100	100
Range Resources (Cayman) Limited	Cayman Islands	100	100
Range Resources Upstream Services Limited	United Kingdom	100	100

(i) Dissolved in year

(ii) Disposed of in year as part of Texas sale

(iii) Amalgamated in year with Range Resources Trinidad Limited.

Note 15: Goodwill

Goodwill is measured as described in note 1(v). Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses.

The Group reported goodwill of US$46,198,974, which was derived from the acquisition of SOCA Petroleum Limited through the parent's subsidiary Range Resources (Barbados) Ltd.

	Goodwill
	2015 US$	2014 US$
At 1 July 2014
Cost	46,198,974	46,198,974
Accumulated amortisation and impairment	-	-
Net book amount	46,198,974	46,198,974
Year ended 30 June 2015
Opening net book amount	46,198,974	46,198,974
Additions-acquisition	-	-
Amortisation charge	-	-
Closing net book amount	46,198,974	46,198,974

(a) Impairment tests for goodwill

During the year ending 30 June 2015, the Group determined that there is no impairment of any of its cash-generating units or group of cash-generating units containing goodwill or intangible assets with indefinite useful lives.

Note 15: Goodwill (continued)

Goodwill has been allocated for impairment testing purposes to a single cash-generating unit (CGU), identified according to operating segments, being Trinidad.

Estimates of the recoverable amount is based on an an asset's fair value less costs to sell (level 3 fair value hierarchy) using a discounted cash flow method and is most sensitive to the following key assumptions:

- P1 and P2 Recoverable reserves

- Commodity price of between US$52 and US$82 per barrel dependent on the year.

- Operating costs at 7-14% of revenue, depending on oil price at that time.

- Post-tax discount rate of 10%

Economical recoverable reserves represent management's expectations at the time of completing the impairment testing and based on the reserves statements and exploration and evaluation work undertaken by appropriately qualified persons. A summary of the Company's Trinidad reserves and resources are published on the company's website.

The commodity price for oil was based on forecast oil price data compiled by Capital IQ, as used in the IER released on 31 July 2015. The data compiled by Capital IQ is taken from a number of economic and market analyst forecasts and averaged to present an estimated forecast price. Estimates are $52/bbl in 2015, $63/bbl in 2016, $70/bbl in 2017, $73/bbl in 2018, $78/bbl in 2019, $80/bbl in 2020 and $82/bbl from 2021.

Operating cost assumptions were based on management reports from June and July 2015.

(b) Sensitivity to change of assumptions

An individual movement of 20% against any one key assumption would cause the carrying value of the cash generating unit to materially exceed its recoverable amount. An adverse movement of 20% in reserves and resources, commodity prices, operating costs or discount rate would lead to an impairment of US$16.4m, US$32.3m, US$4.7m and US$4.7m respectively.

Note 16: Property, Plant & Equipment

Consolidated	Production Equipment and access roads US$	Gathering Station and Field Office US$	Leasehold Improvement US$	Motor Vehicle, Furniture, Fixtures & Fittings US$	Total US$

Year ended 30 June 2014
Opening net book amount	10,897,690	159,025	433,409	810,294	12,300,418
Foreign currency movement	4,372	-	546	2,603	7,521
Additions	746,400	-	-	111,534	857,934
Disposals	-	-	-	(2,708)	(2,708)
Depreciation charge	(1,543,103)	(19,756)	(49,139)	(296,898)	(1,908,896)
Closing net book amount	10,105,359	139,269	384,816	624,825	11,254,269

At 30 June 2014
Cost	20,969,042	424,876	1,061,478	2,032,909	24,488,305
Accumulated depreciation	(10,863,683)	(285,607)	(676,662)	(1,408,084)	(13,234,036)
Net book amount	10,105,359	139,269	384,816	624,825	11,254,269

Year ended 30 June 2015
Opening net book amount	10,105,359	139,269	384,816	624,825	11,254,269
Foreign currency movement	143,202	(29,878)	(116,584)	2,167	(1,093)
Additions	1,413,411	23,543	24,181	115,163	1,576,298
Disposals	-			(3,100)	(3,100)
Disposal of subsidiary	(10,030,580)	-	-	(245,780)	(10,276,360)
Depreciation charge	(793,660)	(15,844)	(45,098)	(192,970)	(1,047,572)
Closing net book amount	837,732	117,090	247,315	300,305	1,502,442

At 30 June 2015
Cost	5,206,843	529,326	556,333	1,235,929	7,528,431
Accumulated depreciation	(4,369,111)	(412,236)	(309,018)	(935,624)	(6,025,989)
Net book amount	837,732	117,090	247,315	300,305	1,502,442

Note 17: Exploration and Evaluation Expenditure

	Consolidated
		2015 US$	2014 US$

Opening net book amount		523,605	9,453,636
Additions		145,346	683,887
Assets written off (note 4c)		-	(9,613,918)
Closing net book amount		668,951	523,605

At 30 June 2015, the US$668,951 (30 June 2014 - US$523,605) capitalised exploration and evaluation expenditure relates to the interests of the Group in the Guayaguayare and St Mary's Blocks in Trinidad.

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

The recoverability of the carrying amount of exploration assets is dependent on the successful development and commercial exploitation or sale of the respective mining permits.

Capitalised costs amounting to US$145,346 (2014: US$683,887) has been included in the statement of cash flows from investing activities.

Note 18: Producing Assets

	Consolidated
	2015 US$	2014 US$

At 30 June
Cost	122,141,667	110,748,605
Accumulated amortisation	(31,791,175)	(28,230,785)
Net book value	90,350,492	82,517,820

Opening net book amount	82,517,820	85,422,826
Foreign currency movement	395	11,633
Additions	11,392,667	3,146,149
Amortisation charge	(3,560,390)	(6,062,788)
Closing net book amount	90,350,492	82,517,820

Note 19: Investments in Associates

	Consolidated
	2015 US$	2014 US$
Opening balance	2,779,476	37,295,453
Transfer from other non-current assets (note 20)	-	2,897,785
Transfer investment in unlisted company Strait Oil & Gas (UK) Limited to held for sale (note 12)	-	(39,281,987)
Consideration for equity interest	-	1,293,214
Further investments	-	2,644,549
Loss on impairment	(600,118)	(1,410,138)
Share of net loss using equity method	-	(659,400)
Transfer investment in Latin American Resources to held for sale (note 12)	(2,179,358)	-
Closing net book amount	-	2,779,476

During the prior year, the Company committed to a plan to dispose of its equity interest in the unlisted Company Strait Oil & Gas (UK) Limited. US$39,281,987 was therefore re-classified as asset held for sale (refer to note 12).

During the current year, the Company committed to a plan to dispose of its equity interest in Latin American Resources (LAR). US$2,179,358 was therefore re-classified as asset held for sale (refer to note 12).

(a) Interests in associates

The table below sets out material interests in associates at 30 June 2015. Unless otherwise stated, the proportionate ownership interest is the same as the proportion of voting rights held.

Name of entity

Place of business/

Country of incorporation

Ownership

interest held by the group

Nature of relationship

Measurement method

Quoted

fair value

2015

2014

2015

2014

Latin American Resources

Guatemala

20 (i)

Held for sale asset (2015)

Associate (2014)

Equity method

N/A *

*Private company - no share price available

(i) Classified as held for sale during the year at which point ceased to be accounted for as an associate. Range has not received audited financial statements from Latin American Resources during the year. Range has therefore written down the carrying value of the asset to US$1.0m.

Note 20: Other Non-Current Assets

	Consolidated
	2015 US$	2014 US$
Non-current receivables (a)	-	1,500,000
Total non-current assets	-	1,500,000

(a) Non-current receivables
Opening balance	1,500,000	8,584,773
Transfer to other current receivable	-	(1,214,389)
Advances made during the year	-	700,000
Foreign currency movement	-	(20,867)
Payments received during the year	(500,000)	-
Impairment	-	(6,549,517)
Settled by way of available for sale investment	(1,000,000)
Closing balance	-	1,500,000

During the year ended 30 June 2013, the Company announced its proposal to undertake a strategic merger with International Petroleum Limited (NSX: IOP) and during that year the Company provided a loan to IOP of US$8,029,110. The loan accrued interest at a rate of 8% per annum and was repayable by 30 April 2014. IOP was unable to meet the loan repayment when due. During the current financial year, the Company reached an agreement with IOP to extend the loan repayment date to 30 November 2014 to allow IOP time to complete the sale of its Russian assets and upon conclusion of the sale, IOP made a US$500,000 cash repayment, with the remaining outstanding monies converted to ordinary shares in IOP. Range also received 5 million options to acquire shares in IOP (exercisable at AU$0.06, expiry 24 months from the issue date). Following completion of the sale of IOP Russian assets and the debt conversion to equity, Range owns approximately 9% of the enlarged share capital of IOP. This balance has been transferred to available for sale financial assets in the period.

IOP remains suspended from trading on NSX and given the uncertainty over the valuation of the shares once trading resumes, the investment has been written down to US$346,000 being equivalent to the Company's 9% shareholding interest in IOP's net cash position at 30 June 2015.

Note 21: Trade and Other Payables

	Consolidated
	2015 US$	2014 US$
Trade payables	4,991,035	4,233,904
Sundry payables and accrued expenses	8,663,160	4,471,101
	13,654,195	8,705,005

Risk exposure

Trade payables are non-interest bearing.

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 35.

Note 22: Borrowings at Fair Value

(a) Borrowings at Fair Value	Consolidated
	2015 US$	2014 US$
Opening balance	-	11,026,440
Proceeds from borrowings	5,500,000	16,407,790
Fair value movement	-	13,323,578
Face value premium	2,250,000	-
Interest due on outstanding balance	330,577	-
Amount classified as equity	-	(2,123,709)
Cash repayment	-	(16,119,380)
Conversion to equity	-	(17,727,995)
Repayment via equity	(562,500)	-
Settled through transfer of assets	-	(2,470,353)
Settled through issue of options	-	(3,146,491)
Foreign currency movement	-	830,120
Closing net book amount	7,518,077	-

On 30 September 2014, Range announced that it had signed a loan agreement for up to US$15 million in medium-term financing with Lind Asset Management, LLC, (Lind). The terms of the financing were subsequently amended, as announced on 17 October 2014.

The Loan was signed for a maximum term of 24 months and was to be available in 2 tranches. The first tranche (Tranche 1) totalling US$10 million, of which US$5 million was funded at closing with the remainder to be drawn down on a monthly basis, with the second tranche (Tranche 2) totalling US$5 million. The total amount repayable under the facility was to be US$18.375 million (US$12.25 million for Tranche 1 and US$6.125 million for Tranche 2).

Each tranche was repayable over an 18-month period from the date of drawdown. Each repayment could be made on a monthly basis, at Range's option, either through cash or shares (Repayment Shares) (or a mixture of both). Following the first 6 monthly repayments, if the Company elected to repay in cash, the repayment amount carried a premium of 2.5% of that monthly repayment amount. Repayment shares were to be priced at the lower of 92.5% of the average of three daily volume weighted average prices (VWAP), to be chosen by Lind, during the 20 trading days prior to each issuance of shares and 130% of the average daily VWAP per share during the 11 trading days prior to 17 October 2014 (for Tranche 1) and the second closing date (for Tranche 2).

In addition, after a period of 6 months from the initial drawdown, Lind had the option to convert any amounts outstanding under the agreement into ordinary shares at a premium conversion price equal to 130% of the average of the VWAP during the 11 trading days prior to the amended agreement being signed (equal to either A$0.0243 or 1.203p per share).

As part of the financing package, Lind was also entitled to receive up to 46,500,000 options exercisable for up to 36 months after the date of issue. The options were to be issued in two tranches; 31,000,000 upon drawdown of Tranche 1 and 15,500,000 6 months after execution of the amended agreement in respect of Tranche 2. The exercise price for the options was to be equal to 130% of the average of the VWAP during the 11 trading days prior to the amended agreement being signed. This exercise price is £0.01203.

As security for the facility, Range issued to Lind 38,000,000 ordinary shares in the Company (Collateral Shares).

Range had the right to elect to repay the facility in full at any time and if that occurred Lind had the right upon repayment to convert the repayable amount at that time (or a certain portion of that amount) into equity at the premium conversion price equal to 130% of the average of the VWAP during the 20 trading days prior to the agreement being signed (equal to A$0.0335 or 1.8938p per share).

Range received advances totalling US$5,500,000 (minus certain fees) pursuant to the agreement. Range made a repayment of US$562,500 (paid by way of the issue of shares to Lind) in November 2014.

Note 22: Borrowings at Fair Value (cont.)

The amended agreement contained a clause to the effect that a suspension of trading of the Company's shares on either the ASX or AIM market for more than 5 trading days in any rolling 12 month period commencing on the execution date would constitute an event of default (subject to certain exceptions). With the suspension which started on 10 December 2014, the Company fully utilised these days. On that basis, Lind demanded re-payment of the balance of the loan immediately and in full, together with a premium of US$2.25 million and interest.

On 16 February 2015 Range received a statutory demand from Lind demanding repayment of approximately US$7.2 million that Lind alleges is due and payable.

On 9 March 2015, Range filed an application to the Supreme Court of Western Australia to set aside the statutory demand.

On 2 July 2015, the company announced that its application to the Supreme Court of Western Australia to set aside the statutory demand from Lind Asset Management, LLC had been unsuccessful. The Supreme Court extended the time for payment of the demand.

On 27 July 2015, Range filed an appeal against the Supreme Court's decision, and the Western Australian Court of Appeal extended the deadline for repayment until the later of 31 August 2015 or 7 days from the determination of the appeal.

In advance of the appeal, Range paid $5.0m to Lind on 28 July 2015 without prejudice to its contentions in the appeal.

On 10 September 2015 the appeal was heard and as at the date of this report, no decision has been received from the Western Australian Court of Appeal.

During the prior year the Group entered into various financing arrangements, as follows:

· Equity swap arrangement with Yorkville Advisors - Range issued 72 million shares for £1.1million at a benchmark price of £0.017 to be settled in 6 equal monthly instalments. Nil outstanding at prior year end.

· £4.1 million (US$6.2 million) unsecured convertible note agreements with Hudson Bay, Cranshire, Empery and Hartz. The term of the loan was for 18 months at coupon rate of 10%, a discount to the face value of 10% and convertible at a 90% VWAP conversion price. The entire balance was settled through the issue of equity during the year. Under the terms of these agreements, the lender was granted options equal to 50% of the number of shares issued on each conversion date. These options have an exercise price equal to the conversion price and an expiry term of 3 years. Nil outstanding at prior year end.

· Platinum Partners provided 2 loans for £2.2 million and US$3.3 million respectively each for a 6 month term. In consideration for providing the loans the Company issued 13,636,364 options exercisable at £0.011 on or before 31 January 2017, 100million collateral shares in the Company and additionally provided security over 100million shares held by the Company in Citation Resources Limited (ASX: CTR). The loan was fully repaid during the year and as part of the repayment arrangements the Company agreed that the lender was not required to return the collateral shares or the CTR security, which therefore allowed a reduced cash payment of the outstanding amount of the loan. Nil outstanding at prior year end.

· US$600,000 3-month loan from a US based institutional investor which was convertible at the lenders option at 85% VWAP conversion price. Nil outstanding at prior year end.

· Unsecured loan of US$2.2 million from a syndicate of Australian investors which was convertible upon the mutual agreement of the Company and lenders at a 85% VWAP conversion price. In consideration for providing the loans the Company issued 23,779,254 options to the syndicate. Nil outstanding at prior year end.

· US$1 million, 12 month loan from a Cayman Islands based company which was convertible at the lenders option at the lower of 1.35p/share or 90% VWAP conversion price. In consideration for providing the loans the Company issued 7,500,000 options to the lender. Nil outstanding at prior year end.

In the year ended 30 June 2013, the Group issued US$10,400,000 in secured notes to Crede Capital Group. The outstanding borrowing was fully settled in October 2013 and the remaining obligation to issue 7,500,000 options was satisfied during the year and the security has been released.

Note 22: Borrowings at Fair Value (cont.)

Also in the year ended 30 June 2013, the Group entered in a US$15 million Loan Agreement backed by a Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors. US$6.9 million was drawn during the year ended 30 June 2014 with nil outstanding at prior year end.

(b) Option Liability

	Consolidated
	2015 US$	2014 US$
Option liability at fair value through profit or loss	808,083	2,189,913
	808,083	2,189,913

During 2015, 49,051,468 options with a face value of US$1,426,883 were exercised prior to year-end and 31m options with a fair value of US$172,926 were issued.

During the prior year 240,694,827 options with a fair value of US$3,004,295 were issued as a result of conversion of notes under the above financing arrangements. 70,833,334 options with a face value of US$814,382 were exercised prior to year-end.

Note 23: Provision for Rehabilitation

Consolidated

2015

US$

2014

US$

Provision for rehabilitation

734,858

696,224

Movement in the provision for rehabilitation during the financial year are set out below:


Carrying amount at the start of the year	696,224	654,873
Additional provision recognised	38,634	41,351
Carrying amount at the end of the year	734,858	696,224

Note 24: Deferred Tax Liability

	Fair Value Uplift on Business Combination	Accelerated Depreciation	Total
	US$	US$	US$
Movements
Year ended 30 June 2014
Opening balance	38,081,168	6,914,465	44,995,633
Foreign currency movement	1,041	-	1,041
Charged/(credited)
- to profit or loss	(3,071,637)	2,450,996	(620,641)
Closing net book amount	35,010,572	9,365,461	44,376,033

Year ended 30 June 2015
Opening balance	35,010,572	9,365,461	44,376,033
Foreign currency movement	(1,041)	(32,147)	(33,188)
Disposal of subsidiary	(723,359)	(1,189,198)	(1,912,557)
Charged/(credited)
- to profit or loss	(1,966,411)	(2,895,322)	928,911
Closing net book amount	32,319,761	11,039,438	43,359,199

As a result of business combination, at the date of acquisition a deferred tax liability has been recognised in relation to the difference between the carrying amount of the deferred exploration and development costs for accounting purposes and the cost base of the asset for tax purposes in accordance with the requirements of Australian Accounting Standard AASB 112 Income Taxes. The Group does not have a tax payable in relation to the deferred tax liability at 30 June 2015 and it is anticipated that the deferred taxation liability will be reduced in the future as the deferred exploration and development costs are amortised in future periods.

Note 25: Other Non-Current Liabilities

	Consolidated
	2015 US$	2014 US$
Employee service benefits	521,257	584,746
	521,257	584,746

Risk exposure

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 35.

Note 26: Contributed equity

	Consolidated
	2015 US$	2014 US$
5,767,169,188 (2014: 4,521,201,870) fully paid ordinary shares	382,535,744	364,567,692
Nil (2014: 386,188,780 l) unissued fully paid ordinary shares	-	6,000,000
Nil partly paid shares (2014: 4,925,000)	-	1,362,344
Share issue costs	(19,330,467)	(19,330,467)
	363,205,277	352,599,569

		Consolidated
		2015 No.	2015 US$	2014 No.	2014 US$
(a)	Fully Paid Ordinary Shares

	At the beginning of reporting period	4,521,201,870	364,567,692	2,898,084,648	331,447,756
	Shares issued during year	1,245,967,318	17,968,052	1,623,117,222	33,119,936
	Total contributed equity	5,767,169,188	382,535,744	4,521,201,870	364,567,692

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held.

On a show of hands every holder of ordinary shares present at a meeting of the Company, in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

(b)	Unissued Fully Paid Ordinary Shares	2015	2014
		No.	No.
	Opening balance (i)	386,188,780	30,000,000
	Issued in year	(356,188,780)
	Shares to be issued subsequent to reporting date (ii)	-	356,188,780
	Total contributed equity	30,000,000	386,188,780

(i) Under the terms of an agreement between shareholders in Strait, the Company was required to issue 30,000,000 shares to other investors in Strait upon the completion of the next well in the Georgia drilling programme or upon disposal of Range's shareholding in Strait.

(ii) During the prior year, the company entered into a US$12 million financing facility with a Hong Kong based private institutional investor, Abraham Ltd. Under the terms of the subscription agreement, Abraham was to subscribe for shares in the Company in two US$6 million tranches, with the first tranche issued during the year, whilst the second tranche was to be issued following shareholder approval. Shareholder approval for the issue of shares for the US$6 million second tranche was sought and obtained at the General Meeting of the Company on 11^th July 2014.


Note 26: Contributed equity (continued)
(c)	Partly Paid Ordinary Shares
		Consolidated
		2015	2014
		No.	No.
	Total partly paid shares -AU$0.30	-	4,925,000
	Total contributed equity	-	4,925,000
	All partly paid shares were cancelled during the year.

(d) Movements in fully paid ordinary share capital

2015	Details	Number of shares	Issue Price US$	US$
1 July 2014	Opening balance	4,521,201,870		364,567,692
	Transfer from unissued	356,188,780	0.017	6,000,000
	Shares issued as loan repayment	58,440,891	0.010	562,500
	Shares issued upon option conversion	49,051,468	0.010-0.024	923,880
	Shares issued as Collateral Shares (i)	38,000,000	0.008	300,979
	Shares issued to employees	19,987,481	0.013-0.040	580,458
	Shares issued in lieu of corporate advisory/ capital raising and loan commencement fees	74,298,698	0.009-0.037	1,633,315
	Issued to Beijing Sibo Investment Management LP	650,000,000	0.012	7,966,920
30 June 2015	Closing Balance	5,767,169,188		382,535,744
1 July 2013	Opening balance	2,898,084,648		331,447,756
	Issue of shares through conversion of notes (refer note 22)	907,296,105	0.020	17,727,995
	Placement	53,125,000	0.037	1,963,500
	Issue of shares to YA Global through equity swap (refer note 22)	72,000,000	0.025	1,794,238
	Equity tranche under YA Global agreement	8,119,059	0.027	219,012
	YA advance	31,000,954	0.036	1,107,013
	Equity tranche under convertible notes	81,460,298	0.026	2,123,709
	Issue of shares to Abraham Ltd for US$12m financing as per subscription agreement	356,188,780	0.017	6,000,000
	Issue of shares through exercise of options	70,833,334	0.009	652,778
	Shares issued in lieu of corporate advisory fees (refer note 32)	43,093,692	0.036	1,531,691
30 June 2014	Balance	4,521,201,870		364,567,692

		Consolidated
		2015 No.	2014 No.
(e)	Options
	At the beginning of reporting period	453,203,084	266,612,503
	Options issued during year	394,701,840	257,423,915
	Options expired	(9,855,166)	-
	Options exercised during year	(49,051,469)	(70,833,334)
	Total options	788,998,289	453,203,084

Note 26: Contributed equity (continued)

At the date of this report, the unissued ordinary shares of Range Resources Limited under option are as follows:

Date of Expiry	Exercise Price	Number Under Option
31 January 2016	$0.05	80,508,341	listed
30 April 2016	£0.17	7,058,824	unlisted
31 January 2017	£0.075	5,180,000	unlisted
19 October 2015	£0.0615	15,708,801	unlisted
30 November 2015	£0.05075	32,275,862	unlisted
31 January 2016	A$0.10	5,000,000	unlisted
10 February 2016	A$0.06	5,000,000	unlisted
30 April 2016	£0.04	146,533,850	unlisted
11 July 2016	£0.037	5,000,000	unlisted
25 July 2016	£0.021	476,190	unlisted
29 July 2016	£0.021	952,381	unlisted
31 August 2016	£0.021	6,714,284	unlisted
31 August 2016	£0.020	9,000,000	unlisted
30 September 2016	£0.019	3,947,369	unlisted
30 September 2016	£0.018	8,666,670	unlisted
31 October 2016	£0.018	694,445	unlisted
31 October 2016	£0.017	2,205,885	unlisted
31 October 2016	£0.016	1,250,000	unlisted
31 October 2016	£0.015	17,333,336	unlisted
30 November 2016	£0.015	3,000,001	unlisted
30 November 2016	£0.013	5,153,846	unlisted
11 December 2016	$0.0321	2,000,000	unlisted
31 December 2016	£0.012	2,000,000	unlisted
31 December 2016	£0.011	5,000,000	unlisted
31 January 2017	£0.011	23,636,364	unlisted
9 September 2017	£0.03	7,500,000	unlisted
14 July 2018	£0.01	161,472,247	unlisted
14 July 2018	£0.02	118,729,593	unlisted
31 January 2018	$0.05	1,000,000	unlisted
15 October 2017	£0.01203	31,000,000	unlisted
30 March 2020	£0.01	75,000,000	unlisted
		788,998,289

The holders of these options do not have any rights under the options to participate in any share issues of the company.

During the year ended 30 June 2015, 49,051,468 ordinary shares of Range Resources Limited were issued on the exercise of options (2014: 70,833,334).

Note 27: Reserves

	Consolidated
	2015 US$	2014 US$
(a) Share-based payment reserve
Balance 1 July	14,226,861	14,085,042
Options issued to consultants and employees (refer note 32)	2,157,038	141,819
Expired options reclassified to retained earnings	(2,152,321)	-
Balance 30 June	14,231,578	14,226,861

The share based payment reserve records items recognised as expenses on the fair valuation of shares and options issued as remuneration to employees, directors and consultants.

(b) Option premium reserve
Balance 1 July	10,630,513	9,815,752
Fair value movement of exercised options that were originally classified as a derivative liability	1,426,850	814,761
Balance 30 June	12,057,363	10,630,513

The option premium reserve is used to recognise the grant date fair value of options.

(c) Foreign currency translation reserve
Balance 1 July	3,004,632	3,415,742
Currency translation differences arising during the year	455,307	(411,110)
Balance 30 June	3,459,939	3,004,632

The foreign currency translation reserve is used to record exchange differences arising from the translation balances of foreign subsidiaries.

(d) Available for sale investment revaluation reserve
Balance 1 July	-		(325,263)
Reclassification to profit or loss	-		855,146
Decrease in value of investments	-		(529,883)
Balance 30 June	-		-
Total Reserves		29,748,880	27,862,006

Note 28: Commitments

Expenditure commitments

	Consolidated
	2015 US$	2014 US$

Not later than 1 year	211,000	137,500
	211,000	137,500

Note 29: Contingent Liabilities and Contingent Assets

Mark Patterson

Range has received a demand for arbitration of claims in the amount of approximately US$5.8 million from Mark Patterson who was engaged by Range as a consultant over a period from 2010 - 2014. Mr. Patterson is claiming he terminated a purported consultant contract, dated 29 August 2013, with good reason, as defined in the contract, due to a reduction in duties, and in that circumstance he claims to be entitled to full payment for the remainder of the term of the contract plus various other payments. Range has engaged legal advisers to assist with this claim and will strongly defend our position. The claim will be heard through an arbitration process in Texas. It is currently expected that the arbitration hearing will occur in late 2015. Given the process is still at an early stage, Range is unable to quantify any likely financial impact of a successful claim against the Company however, it will not have a material impact.

Crown Capital Partners

Range is involved as a defendant in a court action in Alberta, Canada related to an alleged breach in early 2013 of an exclusivity undertaking in a commitment letter from a potential financier dated 6 November 2012. The claim is for approximately C$500,000. Range strongly refutes the allegations and intends to vigorously defend our position. A Statement of Defence has been filed and Range is currently in the discovery phase of litigation. There is no date as yet for a court hearing and the Company is not in a position therefore to determine the likely financial impact of any successful claim. Range however, believes that any outcome against the Company will not have a material impact.

Lancdon LLC & Benedict Silverman

Los Bajos Oil Limited is a defendant in a court action in federal court in the state of Connecticut, USA which dates back to the period prior to Los Bajos being acquired by Range in 2011. The claim relates to an alleged breach of contract with respect to payments due by Los Bajos to Lancdon LLC under a settlement agreement dated May 2011. Range has an indemnity from the sellers of Los Bajos in respect of any successful claim against the Company.

The Directors are not aware of any further contingent liabilities or contingent assets as at 30 June 2015.

Note 30: Segment Reporting

Management have determined that the operating segments are broadly consistent with prior periods, with management allocating resources to segments on a geographical basis. During the financial period, the Group operated in six operational segments being Somalia, Georgia, Texas, Colombia, Guatemala and Trinidad. The operating segments of Somalia and Colombia have been aggregated as their operations are of a similar nature and not material to the Group.

(a) Segment information provided to the strategic steering committee


Year ended 30 June 2015	Continuing Operations			Discontinued operations
	Trinidad	All Other Segments	Total	Discontinued Operations - Georgia	Discontinued Operations - Texas	Discontinued Operations - Guatemala	Total discontinued operations	Consolidated
	US$	US$	US$	US$	US$	US$	US$	US$

Segment revenue
Revenue from continuing operations	13,152,954	-	13,152,954	-	-	-	-	13,152,954
Revenue from discontinued operations	-	-	-	-	238,194	-	238,194	238,194
Other income	-	428,588	428,588	-	-	-	-	428,588
Total revenue	13,152,954	428,588	13,581,542	-	238,194	-	238,194	13,819,736

Segment result
Segment expenses	(23,162,985)	(11,532,647)	(34,695,632)	(5,474,255)	(681,621)	(1,779,476)	(7,935,352)	(42,630,983)
Profit/ (loss) before income tax	(10,010,031)	(11,104,059)	(21,114,090)	(5,474,255)	(443,427)	(1,779,476)	(7,697,158)	(28,811,248)
Income tax	(1,467,806)		(1,467,806)	-	-	-	-	(1,467,806)
Profit/ (loss) after income tax	(11,477,837)	(11,104,059)	(22,581,896)	(5,474,256)	(443,427)	(1,779,476)	(7,697,159)	(30,279,054)

Segment assets
Segment assets	144,457,523	11,458,496	155,916,019	5,000,000	-	1,000,000	6,000,000	161,916,019
Total assets	144,457,523	11,458,496	155,916,019	5,000,000	-	1,000,000	6,000,000	161,916,019

Segment liabilities
Segment liabilities	49,846,696	17,045,866	66,892,562	-	-	-	-	66,892,562
Total liabilities	49,846,696	17,045,866	66,892,562	-	-	-	-	66,892,562

Note 30: Segment Reporting (continued)

Year ended 30 June 2014	Continuing Operations			Discontinued operations
	Trinidad	All Other Segments	Total	Discontinued Operations - Georgia	Discontinued Operations - Texas	Total discontinued operations	Consolidated
	US$	US$	US$	US$	US$	US$	US$

Segment revenue
Revenue from continuing operations	21,185,745	-	21,185,745	-	-	-	21,185,745
Revenue from discontinued operations	-	-	-	-	553,965	553,965	553,965
Other income	3,218	1,221,108	1,224,326	-	-	-	1,224,326
Total revenue	21,188,963	1,221,108	22,410,071	-	553,965	553,965	22,964,036

Segment result
Segment expenses	(27,817,491)	(59,373,442)	(87,190,933)	(29,281,987)	(8,670,784)	(37,952,771)	(125,143,704)
Profit/ (loss) before income tax	(6,628,528)	(58,152,334)	(64,780,862)	(29,281,987)	(8,116,819)	(37,398,806)	(102,179,668)
Income tax	(906,620)	-	(906,620)		544,298	544,298	(362,322)
Profit/ (loss) after income tax	(7,535,148)	(58,152,334)	(65,687,482)	(29,281,987)	(7,572,521)	(36,854,508)	(102,541,990)

Segment assets
Segment assets	147,238,949	5,058,337	152,297,286	10,000,000	1,080,777	11,080,777	166,157,539
Total assets	147,238,949	5,058,337	152,297,286	10,000,000	1,080,777	11,080,777	166,157,539

Segment liabilities
Segment liabilities	51,383,185	5,479,091	56,862,276	-	-	-	56,862,276
Total liabilities	51,383,185	5,479,091	56,862,276	-	-	-	56,862,276

Note 30: Segment Reporting (continued)

(b) Other segment information

	Consolidated
	2015 US$		2014 US$
Segment other revenue - all other segments
Other income		428,588	1,221,108
		428,588	1,221,108

Segment result - all other segments
Directors fees	912,290	1,115,524
Consultancy fees	359,830	3,421,400
Marketing and Public relations	200,134	461,902
Share-based payments	2,737,493	1,673,558
Finance costs	4,347,575	21,797,779
Asset write offs	38,929	9,138,960
Administration and other expenses	2,544,177	4,014,652
Exploration expenses	392,219	15,577,838
Share of loss of associate	-	2,171,829
	11,532,647	59,373,442

Accounting Policies

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. The chief operating decision maker is the managing director and through this role the Board of Directors.

Following the adoption of AASB 8, the identification of the Group's reporting segments remain consistent with prior periods, with management allocating resources to segments on a geographical basis.

Information regarding these segments is presented above. The accounting policies of the reportable segments are the same as those of the Group. Segment information is prepared in conformity with the accounting policies of the entity as disclosed in Note 1.

Segment revenues and expenses are those directly attributable to the segments and include any joint revenue and expenses where a reasonable basis of allocation exists. Segment assets include all assets used by a segment and consist principally of cash, receivables, plant and equipment, exploration expenditure capitalised and development assets net of accumulated depreciation and amortisation. While most such assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. Segment disclosures do not include deferred income taxes.

Revenue from discontinued operations from Texas of US$238,194 (2014: US$553,965) is derived from several customers who each account for greater than 10% of this amount. Revenue from Trinidad of US$13,152,954 (2014: US$21,185,745) is derived from the subsidiary's sole customer, which is Petrotrin.

Intersegment Transfers

Segment revenues, expenses and results do not include any transfers between segments.

Note 31: Cash Flow Information		Consolidated
		2015 US$	2014 US$
	Reconciliation of cash flow from operations with loss after income tax

	Loss after income tax	(30,279,054)	(102,541,990)
	Non-cash flows in profit
	Depreciation	4,766,581	7,972,169
	Share based payment- consultants and employees	2,737,443	1,673,558
	Finance costs (non-cash)	2,107,281	16,818,148
	Interest on non-current receivable paid in shares	-	(1,207,598)
	Impairment expense	654,000	21,778,525
	Loss on sale of subsidiary	1,593,766	-
	Loss on sale of PPE	3,100	-
	Foreign exchange (gain)/loss	(124,789)	(840,637)
	Impairments recognised on held for sale assets	6,779,476	37,244,836
	Share of net loss of associate	-	659,400
	Net loss on sale of available for sale financial assets	496,958	855,146
	Other non-cash items*
	Decrease/(increase) in other operating assets	-	3,090,272
	Decrease/(increase) in other current assets	375,820	-
	Decrease/(increase) in trade and other receivables	(608,228)	8,958,238
	Decrease/(increase) in deferred tax asset	175,634	(245,405)
	Increase/(decrease) in trade and other payables	162,554	1,534,827
	Increase/(decrease) in accrued interest	2,830,577	-
	Increase/(decrease) in income tax payable	(13,442)	(1,495,695)
	Increase/(decrease) in deferred tax liabilities	1,097,078	(619,600)
	Increase/(decrease) in provisions	289,981	144,025
	Net cash inflow/(outflow) from operations	444,738	(6,221,781)

*Net of effects of subsidiary disposal

Non-cash investing and financing activities		Consolidated
		2015 US$	2014 US$
	Repayment of borrowings:
	Through issue of shares	562,500	17,727,598
	Through the issue of options	-	3,146,491
	Acquisition of available for sale financial assets	-	1,207,598
	Non-cash consideration for investment in associate	-	1,293,214
	Share issued as share based payments or finance costs	4,844,724	-

Note 32: Share-Based Payments

The following share-based payment arrangements occurred during the financial year ended at 30 June 2015.

Quantity	Security	US$ Value	Purpose
19,987,481	Fully paid ordinary shares	580,406	Shares issued to employees and consultants
42,742,654	Unlisted options	1,176,524	Options issued in lieu of consulting fee
75,000,000	Unlisted options	85,464	Options issued to Directors in period
7,500,000	Unlisted options	895,049	Options issued in lieu of consulting fees

Note 32: Share-Based Payments (continued)

The following inputs were used to calculate the value of the options issued to Directors in the period:

Volatility: 100% Grant date: 27 March 2015

Risk free rate: 1.92% Exercise price: £0.01

USD/GBP exchange rate: 0.7752 Share price on grant date £0.054

The following share-based payment arrangements occurred during the financial year ended at 30 June 2014.

Quantity	Security	US$ Value	Purpose
43,093,692	Fully paid ordinary shares	1,531,691	Issued in lieu of corporate advisory fees
16,729,087	Listed options	141,869	Issued in lieu of corporate advisory fee

Listed options issued as share based payments during the year ended 30 June 2014 were valued based upon the market price at grant date. There were no unlisted options issued in the 30 June 2014 year.

The fair value at grant date of unlisted options is independently determined using a Black Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

Employee option plan

During the year the following options were issued to Directors and employees:

Name	Number of options
Mr Yan Liu	30,000,000
Mr David Chen	30,000,000
Mr Zhiwei Gu	7,500,000
Ms Juan Wang	7,500,000

The vesting conditions of these options are as follows:

(a) 25% will become exercisable on the date that is one year from the issue date

(b) 25% will become exercisable upon the Company reaching production of 1,500 barrels of oil per day for a continuous 15 day period in Trinidad

(c) 25% will become exercisable upon the Company reaching production of 2,500 barrels of oil per day for a continuous 15 day period in Trinidad

(d) 25% will become exercisable upon the Company reaching production of 4,000 barrels of oil per day for a continuous 15 day period in Trinidad

In addition to the above, vesting depends on continued employment.

In 2014, no options were issued to Directors or employees.

Expenses recognised in the profit & loss

During the year, share-based payments recognised in profit and loss amounts to US$2,157,037 (2014: US$1,673,558)

Note 32: Share-Based Payments (continued)

	2015		2014
	Number	Average exercise price US$	Number	Average exercise price US$
As at 1 July	453,203,083	0.060	266,612,503	0.078
Granted during year	394,701,840	0.019	257,423,914	0.023
Exercised	(49,051,468)	0.017	(70,833,334)	0.009
Forfeited	(9,855,166)		-
As at 30 June	788,998,289	0.023	453,203,083	0.060
Valued and exercisable at 30 June	713,998,289	0.047	453,203,083	0.060
Weighted average remaining contractual life options outstanding at end of period	673 days		700 days

Note 33: Related Party Transactions

(a) Parent entity

The ultimate Parent Entity and ultimate Australian Parent Entity within the Group is Range Resources Limited.

(b) Subsidiaries

Interests in subsidiaries are set out in Note 14.

The following transactions occurred during the year with Key Management Personnel or their related parties:

2015

US$

2014

US$

Consulting fees paid or payable to Soncer Limited, a company owned by Mr Graham Lyon, for the provision of corporate advisory and capital raising services (i)

12,794

67,321

Consulting fees paid or payable to DNR Consulting, a company owned by Mr David Rieke, for the provision of corporate advisory and services (ii)

13,486

Balances at year end to related parties:
Sir Sam Jonah (i)	191,440	219,661
Marcus Edwards-Jones (i)	33,566	33,419
Soncer Limited (i)	18,442	-
Anthony Eastman (iii)	169,280	221,063
OKAP Ventures Pty Ltd payable (iii)	64,579	79,585
Doull Holdings Pty Ltd payable (in respect of Peter Landau Director fees) (iii)	165,403	181,612

(i) These were related parties throughout the financial year until 28 November 2014.

(ii) David Rieke was a related party throughout the financial year until 11 December 2014.

(iii) Related party until 13 June 2014

Note 33: Related Party Transactions (continued)

(d) Key management personnel compensation

	Consolidated
	2015 US$	2014 US$
Short-term employee benefits	778,338	1,147,859
Post-employment benefits	28,152	48,299
Termination benefits	150,253	-
Share based payments	85,464	-
Total	1,042,207	1,196,158

(e) Transactions with associates

Details of transactions with associates are set out in Note 19.

Note 34: Parent Entity Information

The following details information related to the Parent Entity Range Resources Limited, at 30 June 2015. The information presented here has been prepared in accordance using consistent accounting policies as presented in Note 1.

	2015 US$	2014 US$

Current assets	15,290,123	3,740,814
Non-current assets	97,208,375	119,618,504
Total assets	112,498,498	123,359,318

Current liabilities	15,333,201	5,361,769
Total liabilities	15,333,201	5,361,769

Contributed equity	363,205,245	352,599,569
Accumulated losses	(295,165,636)	(262,296,104)
Reserves	29,125,688	27,694,084
Total equity	97,165,297	117,997,549

Loss for the year from continuing operations	(29,028,556)	(57,548,321)
Loss for the year from discontinued operations	(7,355,641)	(37,556,087)
Total loss for the year	(36,384,197)	(95,104,408)

Other comprehensive loss for the year	-	325,263
Total comprehensive loss for the year	(36,384,197)	(94,779,145)

The contingent liabilities of the parent are the same as those of the Group as disclosed in Note 29.

The contractual commitments of the parent are the same as those of the Group as disclosed in Note 28.

Note 35: Financial Risk Management

The Group has exposure to the following risks from their use of financial instruments:

· Credit risk

· Liquidity risk

· Market risk

This note presents information about the Group's exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are included throughout these financial statements.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.

Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed to reflect changes in market conditions and the Group's activities. The Group, through training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all consultants and agents understand their roles and obligations.

Credit risk

Credit risk is the risk of financial loss to the Group if counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group's investments, receivables and cash held at financial institutions.

Credit risk is managed on a group basis. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions.

The credit quality of financial assets that are neither past due or impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates.

	Consolidated
Cash at bank and short-term bank deposits (S&P ratings)	2015 US$	2014 US$
AA-	9,868,592	1,603,785
A-	-	1,340,063
BBB+	661,512	-
BBB	-	33,562
	10,530,104	2,977,410

Exposure to credit risk

The carrying amount of the Group's financial assets represents the maximum credit exposure. The Group's maximum exposure to credit risk at the reporting date was:

	Consolidated
	2015 US$	2014 US$
Trade and other receivables ⁽ⁱ⁾	5,148,978	5,338,769
Non-current receivable ⁽ⁱ⁾	-	1,500,000
Cash and cash equivalents	10,530,104	2,977,410
	15,679,082	9,816,179

(i) Counterparties without an external credit rating

Note 35: Financial Risk Management (continued)

Loans and receivables

The Group's exposure to credit risk is influenced mainly by the individual characteristics of each debtor. No collateral was held in relation to these receivables.

Impairment losses

During the year, an impairment of US$17,937 on trade and other receivables were recognised. An impairment loss of US$654,000 was recognised in relation to the IOP asset in the year. During the prior year, given uncertainty over the counterparty's ability to receive repayment a provision for impairment of US$2,489,443 was recognised in relation to miscellaneous other receivables totalling US$3,179,394.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.

The Group uses activity-based costing to cost its activities, which assists in monitoring cash flow requirements and optimising its cash return on investments. Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 6 months; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

The following are contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

Group 2015
	Carrying amount	Contractual cash flows	6 months or less	6 - 12 months	1-2 years	2-5 years	Over 5 years
Financial liabilities at amortised cost
Trade and other payables	11,998,340	11,998,340	11,998,340	-	-	-	-
Borrowings	7,518,077	7,518,077	7,518,077	-
	19,516,417	19,516,417	19,516,417	-	-	-	-

Group 2014
	Carrying amount	Contractual cash flows	6 months or less	6 - 12 months	1-2 years	2-5 years	Over 5 years
Financial liabilities at amortised cost
Trade and other payables	8,705,005	6,515,093	6,515,093	-	-	-	-
Borrowings	-	-	-	-
	8,705,005	6,515,093	6,515,093	-	-	-	-

Market risk

Market risk is the risk that changes in market prices, such as interest rates and equity prices will affect the Group's income or the value of its holdings of available for sale assets. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Note 35: Financial Risk Management (continued)

Equity price risk

The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified on the statement of financial position as available for sale as well as from the option liability held as a current liability.

A 10% increase in Range's share price would result in an increase to the option liability of $76,707. A decrease would have had the equal but opposite effect.

The Group holds equity investments which are publicly traded and included on the NSX.

Range holds an equity investment in International Petroleum Ltd ("IOP"). Any adverse movement in the share price would be immaterial.

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar, AU dollar, TT Dollar and British pound.

Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash flow forecasting.

The Group's treasury risk management policy is to closely monitor exchange rate fluctuations. To date, the Group has not sought to hedge its exposure to fluctuations in exchange rates, however this policy will be reviewed on an ongoing basis.

The Group's exposure to foreign currency risk at the reporting date was as follows: (expressed in USD)

	Consolidated		Consolidated
	2015 AUD	2014 AUD	2015 GBP	2014 GBP

Amount receivable from other entities	-	1,647,657	-	-
Cash	272,621	343,923	242,304	83,284
Available for sale investments	-	784,397	-	-
Amount payable to other entities	(1,159,133)	(1,042,719)	(362,135)	-
	(886,512)	1,733,257	(119,831)	83,284

Sensitivity

Based upon the amounts above, had the Australian dollar strengthened by 10% against the US dollar with all other variables held constant, the Group post-tax loss for the year on current amounts receivable/payable would have been US$67,885 higher (2014: US$181,654 lower), mainly as a result of foreign exchange gains/losses on translation of AUD denominated payables as detailed in the table above. A 10% weakening of the Australian dollar against the above currencies at 30 June would have had the equal but opposite effect, on the basis that all other variables remain constant.

The Trinidad entities are minimally exposed to foreign exchange risk arising from various currencies, primarily with respect to the United States Dollar.

Note 35: Financial Risk Management (continued)

Interest rate risk

The group's main interest rate risk arises from non-current receivables and borrowings. Non-current receivables and borrowings issued at fixed rates expose the group to fair value interest rate if the loans are carried at fair value. During 2015 and 2014, the group loan receivables were denominated in Australian Dollars, British Pounds and US Dollars.

Profile

At the reporting date, the interest rate profile of the Group's financial instruments which exposes the group to cash flow interest rate risks are:

	Weighted Average		Floating Interest		Fixed Interest Maturing		Non-interest bearing		Total
	Effective Interest Rate		Rate
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
	%	%	US$	US$	US$	US$	US$	US$	US$	US$
Financial Assets:
Cash and cash equivalents	0.10%	2.50%	10,530,104	2,977,410	-	-	-	-	10,530,104	2,977,410
Trade and other receivables	-	-	-	-	-	-	5,148,978	5,338,769	5,148,978	5,338,769
Available for sale financial assets	-	-	-	-	-	-	446,000	876,347	446,000	876,347
Non-current receivables	-	3.33%	-	-	-	1,500,000	-	-	-	1,500,000
Total Financial Assets	0.10%	2.31%	10,530,104	2,977,410	-	1,500,000	5,594,978	6,215,116	16,125,082	10,692,526

Financial Liabilities:
Trade and other payables	-	-	-	-	-	-	11,998,340	8,705,005	11,998,340	8,705,005
Borrowings	35%	-	-	-	7,518,077	-	-	-	7,518,077	-
Total Financial Liabilities	35%	-	-	-	7,518,077	-	11,998,340	8,705,005	19,516,417	8,705,005

Note 35: Financial Risk Management (continued)

Sensitivity analysis for variable rate instruments

The sensitivity on interest rates for 2015 and 2014 assumes a change of 100 basis points in the interest rates at the reporting date and would have increased / (decreased) profit and loss by the amounts shown. Both analyses for each year assume that all other variables, in particular foreign currency rates, remain constant.

Group	Weighted Average Interest Rate %	2015 +100 bps US$	2015 -100 bps US$	Weighted Average Interest Rate %	2014 +100 bps US$	2014 -100 bps US$
Variable rate instruments
Financial assets (cash and cash equivalents)	0.10%	-	-	2.50%	-	-
Financial assets (loan and receivables)	-	-	-	3.33%	-	-

Fair values versus carrying amounts

The fair value of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

Group	30 June 2015 US$		30 June 2014 US$
	Carrying amount	Fair value	Carrying amount	Fair value
Available-for-sale financial assets	446,000	446,000	876,347	876,347
Trade and other receivables	5,148,978	5,148,978	5,338,769	5,338,769
Non-current receivable	-	-	1,500,000	1,500,000
Cash and cash equivalents	10,530,104	10,530,104	2,977,410	2,977,410
Trade and other payables	(11,998,340)	(11,998,340)	(8,705,005)	(8,705,005)
Borrowings	(7,518,077)	(7,518,077)	-	-
	(3,391,335)	(3,391,335)	1,987,521	1,987,521

The basis for determining fair value is disclosed in Note 1(n) and Note 1(o).

Other price risk

The Group is not exposed to any other price risks.

Capital management

The entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital.

The entity's overall strategy remains unchanged from 2014.

The capital structure of the group consists of cash and cash equivalents and equity attributable to equity holders of the Company, comprising issued capital, reserves and accumulated losses as disclosed in Notes 26 and 27 respectively. None of the entities within the group are subject to externally imposed capital requirements.

Note 35: Financial Risk Management (continued)

Gearing ratio

The Board reviews the capital structure on an annual basis. As a part of this review the Board considers the cost of capital and the risks associated with each class of capital

	Consolidated
	2015 US$	2014 US$
Financial assets
Cash and cash equivalents	10,530,104	2,977,410
Financial liabilities
Trade and other payables	(11,998,340)	(8,705,005)
Borrowings	(7,518,077)	-
Net assets / (debt)	(8,986,313)	(5,727,595)
Equity	96,507,888	109,295,263
Net debt to equity ratio	9.31%	5.24%

Categories of financial instruments

	Consolidated
	2015 US$	2014 US$
Financial assets
Cash and cash equivalents	10,530,104	2,977,410
Trade and other receivables	5,148,978	5,338,769
Non-current receivable	-	1,500,000
Available-for-sale financial assets	446,000	876,347
	16,125,082	10,692,526
Financial liabilities
Trade and other payables	11,998,340	8,705,005
Borrowings	7,518,077	-
Option liability	808,083	2,189,913
	20,324,500	10,894,918

The carrying amount reflected above represents the Group's maximum exposure to credit risk for such loans and receivables.

Note 36: Fair Value Measurement of Financial Instruments

(a) Fair value hierarchy

AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),

(b) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2), and

The following table presents the Group's financial assets and financial liabilities measured and recognised at fair value at 30 June 2015 and 30 June 2014 on a recurring basis:

At 30 June 2015	Level 1 US$	Level 2 US$	Level 3 US$	Total

Assets
Available for sale financial assets
Equity securities	-	-	446,000	446,000
Total assets	-	-	446,000	446,000

Liabilities
Option liability at fair value through profit or loss	-	808,083	-	808,083
Borrowings	-	7,518,077	-	7,518,077
Total liabilities	-	8,326,160	-	8,326,160

At 30 June 2014	Level 1 US$	Level 2 US$	Level 3 US$	Total

Assets
Available for sale financial assets
Equity securities	876,347	-	-	876,347
Total assets	876,347	-	-	876,347

Liabilities
Option liability at fair value through profit or loss	-	2,189,913	-	2,189,913
Total liabilities	-	2,189,913	-	2,189,913

The fair value of financial instruments in active markets such as available for sale securities is based on quoted market bids at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1.

The Group's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the end of the reporting period. There were no transfers between the levels of the fair value hierarchy during the year ended 30 June 2015.

(b) Fair values of other financial instruments

The Group has no financial instruments which are not measured at fair value in the consolidated statement of financial position.

Due to their short term nature, the carrying amounts of the current receivables, current payables, current borrowings, and current other financial liabilities is assumed to approximate their fair value.

Note 37: Fair Value Measurement of Non-Financial Instruments

(a) Non-recurring fair value measurements

Assets classified as held for sale at 30 June 2015 were measured at fair value less costs to sell in accordance with the Group's accounting policy.

Fair value less costs to sell has been determined based upon offers received from independent third parties to acquire the assets. Due to the way the third party offers are structured, the fair values of assets held for sale has been assessed as a Level 3 measurement as per the fair value hierarchy set out above.

Significant estimates made in determining the fair value of held for sale assets are as follows:

Strait Oil & Gas (UK) Limited

The Group has made the decision to divest Strait in June 2014. as part of the revised strategy to focus on Trinidad and the Group is in the process of marketing its equity interest in Strait. The Group is optimistic that a buyer will be found for this asset. In the absence of a fully executed sale agreement at the report date the Group has chosen to write down the value of its interest in Strait to US$5million which is considered by the Company to be a fair market value for the level of cash consideration which may be received upon closing of a sale. This valuation is based upon expressions of interest received and negotiations which have taken place with potential purchasers.

Latin American Resources (LAR)

The Group has also made the decision to divest LAR in June 2015. The Group is optimistic that a buyer will be found for this asset. In the absence of a fully executed sale agreement at the report date the Group has chosen to write down the value of its interest in LAR to US$1million which is considered by the Company to be a fair market value for the level of cash consideration which may be received upon closing of a sale. This valuation is based upon expressions of interest received and negotiations which have taken place with potential purchasers.

(b) Fair value hierarchy

AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

(d) Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),

(e) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2), and

(f) Inputs for the asset or liability that are not based on observable market data (unobservable inputs (level 3).

The following table presents the Group's non-financial instruments measured and recognised at fair value at 30 June 2015 on a non-recurring basis:

At 30 June 2015	Level 1 US$	Level 2 US$	Level 3 US$	Total

Assets
Assets classified as held for sale
Strait Oil & Gas (UK) Limited	-	-	5,000,000	5,000,000
Latin American Resources	-	-	2,179,358	2,179,358
Total assets	-	-	7,179,358	7,179,358

Note 38: Events after the Reporting Date

Loan Financing with Lind

Subsequent to the period end, the Company announced that its application to the Supreme Court of Western Australia to set aside the statutory demand from Lind Asset Management, LLC had been unsuccessful. The Supreme Court extended the time for payment of the demand. Subsequently, Range filed an appeal against the Supreme Court's decision, and the Western Australian Court of Appeal extended the deadline for repayment until the later of 31 August 2015 or 7 days from the determination of the appeal. In advance of the appeal, Range paid US$5 million to Lind without prejudice to its contentions in the appeal. On 10 September 2015 the appeal was heard and as at the date of this report, no decision has been received from the Western Australian Court of Appeal.

Completion of US$30m funding

Following the Company's announcement on 1 September 2015, Range received proceeds of US$22.1 million in cash from Beijing Sibo Investment Management LP ("Sibo"). As per the terms of the subscription agreement, Range issued 1,797,620,912 new ordinary fully paid shares of the Company to Sibo at a subscription price of £0.008 per Share, which represented a premium of approximately 45% to the share price of the Company on the close of AIM on 2 September 2015. The Company also issued 194,585,862 unlisted warrants with an exercise price of £0.01 and 172,557,274 unlisted warrants with an exercise price of £0.02 to Sibo. All warrants have an expiry date of 3 September 2019. Tranche 1 subscription proceeds of £5.2 million (approximately US$7.9 million) in cash had already been received by the Company, as announced on 5 June 2015. Following completion of Tranche 2, the total funding provided by Sibo is US$30 million. This gave Sibo a total holding of approximately 32% in the enlarged share capital of the Company.

St Mary's block

During the period, the Company successfully signed the Exploration & Production licence and negotiated the Joint Operating Agreement on the new St Mary's block. The work programme on the block has commenced with the audit of existing field infrastructure, facilities and wells currently underway. Range has committed to drilling four exploration wells, shooting 160km of 2D seismic and 60km2 of 3D seismic, along with various other technical studies before the end of 2018.

Subsequent to the period end, Range used US$8 million of the Sibo proceeds to provide the Ministry of Energy and Energy Affairs with the required performance bond in support of the minimum work obligations on the St Mary's licence. The Company is seeking alternative sources of finance to replace this bond, which would allow the cash collateral to be released and used for other purposes.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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