Range Resources Ltd
ABN 88 002 522 009
34 Parliament Place
West Perth WA 6005
PO Box 684
West Perth WA 6872
P: +61 8 9488 5200
F: +61 8 9321 6699
admin@rangeresources.com.au
9 April 2008
Range Resources Clarifies Inaccurate Web Article
Range Resources Limited (ASX: RRS, AIM: RRL) ("Range" or "the Company") the oil
and gas explorer with assets in Puntland, Somalia, have been made aware of a
recent misleading and defamatory "news" posting on the website called
Garoweonline , under the heading "Somaliland Minerals Minister Accused of
Receiving Kick Backs". This article was attributed to the Somaliland Times.
Puntland and neighbouring Somaliland are currently in a dispute over an area of
land relating to short-term colonial borders as opposed to historic tribal
areas.
In response to the various incorrect statements and claims made in this
article, the Company would like to make the following specific comments:
* No Directors of the Company nor any Company representatives or employees
have ever met the Somaliland minister referred to in the article (Qassim
Yusuf) and no payments have ever been made to this person by the Company.
Range's oil and gas and minerals exploration interests and activities are
solely in Puntland and, at this stage, the Company has no intention of
commencing any activities in Somaliland. The Company further notes that the
Minister in question and another businessman referred to in the article
have also denied the allegations and have stated an intention to commence
defamation proceedings against the publisher;
* The article also make an incorrect reference to $2.5m and a further 17
monthly payments of $200,000 paid by the Company to the President of
Puntland. The Company assumed the payment obligations to the Puntland
Government under the original Contract of Work that was agreed to, and
ratified by, the Puntland Parliament. The Puntland government has confirmed
by written confirmation that all funds have been received under the
Contract of Work.
* The reference in the article to $16.7m being paid by the Company to
Puntland authorities is also incorrect. The Company, in accordance with its
cash flow reporting requirements, disclosed the amount. Approximately
two-thirds (2/3) of the funds referred to relate to payments by Range to
acquire the remaining 49.9% of the original Puntland interest as approved
by Shareholders (they are not payments to the Government).
* The article also incorrectly states, "the Puntland leader agreed that Range
grant an 80% interest in the Nugal and Dharoor blocks to a new company
called Canmex Minerals". The Production Sharing Agreements entered into
between the Puntland Government, Range and its joint venture partner,
TSX-listed Africa Oil Corporation (formerly Canmex Minerals) are unanimous
Acts of the Puntland parliament.
* The Company categorically denies that it or any of its directors or
employees have ever engaged in any criminal or dishonest activity as
alleged in the article.
* The Company believes that the article is defamatory of both it and its
directors and all appropriate legal avenues are currently being pursued.
As a general comment, the Company has in the past noted stories on this website
that were factually incorrect but has not specifically responded to these
stories. However, in this instance and given the proximity to the commencement
of seismic and drilling activity in Puntland by the Company's joint venture
partner, Africa Oil, the Company believes it is appropriate to respond to the
increasing volume of false and misleading statements being made by minority
groups for their own political and / or commercial ends.
Shareholders should be aware that as the Company further progresses towards
drilling at the project it may be subject to innuendo and false conjecture as
to the status of the project. The directors advise that any shareholders who
have concerns or queries relating to any media or web site article should
contact the Company directly to allay their concerns about misinformation.
It is disappointing that the Company was not directly asked to clarify these
issues.
Range, together with Africa Oil, is committed to the development of its assets
in Puntland in a manner that provides tangible benefits to the region and its
people as well as to shareholders.
Further information about Range Resources and Puntland can be found at either
the Range Resources corporate website (www.rangeresources.com.au), or the newly
launched official Puntland Government website (www.puntlandgov.net).
The Company is pursuing this matter with all available resources and advises
shareholders and potential investors to fully analyse all information prior to
making any decisions. The recent Opes Prime collapse has also added to the
destabilisation efforts despite less than 1% of the Company's shares being held
in accounts with Opes Prime and, consequently, being sold down by ANZ.
Opes Prime Update
As previously announced less than 1% of the Company's issued share capital was
held in Opes accounts (approximately 1.4m shares). The Company can confirm that
all Range shares previously held in Opes accounts have now been sold as part of
the ANZ liquidation process.
Of note, the Company is very keen to enhance media understanding and promotion
of its Puntland Project (especially with the imminent commencement of the
US$50m seismic and drilling programme) and hopes that an open dialogue will
avoid any unnecessary distraction from what is certainly going to be an
exciting 6 months for the Company.
ENDS
For further information please contact:
Range Resources Ltd. RFC Corporate Finance Fox-Davies Capital
(Nominated Adviser) (Broker)
Mike Povey / Pete Landau Stuart Laing Daniel Fox-Davies
+ 61 8 9488 5200 +61 8 9480 2500 +44 (0)207 936 5200
Media
Australia
David Tasker
Professional Public Relations
Tel: 08 9388 0944/ 0433 112 936
UK
Jonathan Charles
Conduit PR
Tel: +44 (0)20 7429 6611
jonathan@conduitpr.com
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Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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