Range Resources pitches merger with Aussie peer

AIM oil explorer Range Resources has made an all-share merger offer for Australian listed peer International Petroleum.

AIM oil explorer Range Resources has made an all-share merger offer for Australian listed peer International Petroleum.

The off-market takeover offer values International Petroleum at A$105m, with three Range shares being offered for every two of the target company's.

Range, which is dual-listed on AIM and the ASX, has already received commitments to a A$20m institutional fundraising and has agreed to provide a US$15m secured loan to International Petroleum over its Russian assets.

As well as Russia, International, which is listed on Australia's secondary National Stock Exchange, holds highly prospective assets in Kazakhstan and Niger with total proven, probable and possible reserves of 233m barrels of oil and best estimate prospective resources of 761m barrels of oil and 157bn cubic feet of gas.

If it goes ahead, the merger would create an entity with estimated 23.6m proven, 100m probable and 264m barrels possible reserves of oil respectively across six countries, best estimate prospective resources of 802m barrels of oil and 156bn cubic feet of gas, and combined current production of around 1,000 barrels of oil per day equivalent.

OH

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021