Range Resources to sell Texas producing assets for 30m dollars

published 11 March 2013

Dual-listed oil and gas exploration companyRange Resources has agreed to the sale of its Texas producing assets for cash payments totalling 30m dollars.

The AIM-listed company reported that an agreement had been reached on total cash consideration of $30m with $25m payable at closing plus $5.0m in royalty payments from future production.

Subject to final due diligence, the company will sell its interest in the North Chapman Ranch and East Clarksville fields for $25m in cash at closing plus $5.0m in royalty payments from future production with closing expected to occur in the coming weeks.

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Pete Landau, Executive Director for Range Resources, commented: "Along with our recently announced corporate financing and the renewal and restructuring of our Trinidad concessions, divestiture of the Texas assets is consistent with the company's stated strategy to accelerate growth of production and cash flow in Trinidad while expanding the Range portfolio within select Latin American markets.

He added: "Sale of the company's Texas properties allows us to monetize significant gains from an area that has already reached payout and to redeploy proceeds from the sale into our core international areas."

Range Resources' share price was up 2.12% to 5.31p at 10:28 on Monday.