Range Resources Limited Update on LandOcean payment arrangements (0058N)
August 03 2017 - 3:03AM
UK Regulatory
TIDMRRL
RNS Number : 0058N
Range Resources Limited
03 August 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
UPDATE ON LANDOCEAN PAYMENT ARRANGEMENTS
As announced on 2 May 2017, Range has an outstanding payable
amount of approximately US$39.5 million due to LandOcean Energy
Services Co., Ltd ("LandOcean") which is due for payment no later
than April 2020. This amount has been incurred since 2014 to date
under various purchase orders for drilling and other oilfield
services provided by LandOcean to Range in Trinidad.
Range has received notification from LandOcean that it has
entered into a short-term factoring arrangement with Huayuan
Commercial Factoring Ltd and Sichuan XW Bank Co Ltd (the "Factor").
Range has consented to the factoring arrangement and has provided a
confirmation that if required, it will pay the invoices when due to
the Factor, instead of LandOcean.
The factoring arrangement entered into by LandOcean with Factor
has a maturity date of 30 April 2018 which results in a mismatch
between the maturity date by when LandOcean require to repay Factor
and the due date for payment by Range of the amounts due. There has
been no change to the contractual obligation of Range to repay the
invoices before April 2020 and Range has no express obligation to
repay Factor prior to that date. However, Range recognises there is
a potential risk that should LandOcean default on their repayment
obligation, the Factor may attempt to demand payment of the
invoices by Range at the maturity date. To provide Range with
further comfort on this point, LandOcean has provided Range with a
guarantee and indemnity to ensure that Range does not have to pay
any party (either LandOcean or the Factor), and LandOcean further
indemnifies Range to ensure that Range is only liable to pay no
later than April 2020.
Contact Details
Cantor Fitzgerald Europe
Range Resources Limited (Nominated Advisor and
Evgenia Bezruchko (Group Corporate Broker)
Development Manager) David Porter / Sarah Wharry
e. admin@rangeresources.co.uk (Corporate Finance)
t. +44 (0)20 3865 8430 David Banks (Corporate
Broking)
t. +44 (0)20 7894 7000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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