To buy interest in the North Chapman Ranch project in East Texas with 228 Bcf of natural gas, 18 million bbls of oil and 17 million bbls of NGLS.
Range Resources Ltd., which is listed on the Australian and London exchanges, announced Aug. 9 that it finalized documentation for a $30 million sale of its Texas assets.
Range holds a 25% interest in the initial Smith #1 well and a 20% interest in further wells on the North Chapman Ranch project, Texas. The project area encompasses 1,680 acres. It has assessed proved, probable and possible reserves of 228 billion cubic feet (Bcf) of natural gas, 18 million barrels of oil and 17 million barrels of natural gas liquids.
Range holds a 21.75% interest in the East Texas Cotton Valley Prospect in Red River County, , where the prospect’s project area encompasses approximately 1,570 acres encompassing a recent oil discovery. The prospect has an assessed volume of 3.3 million barrels of oil.
The purchaser has agreed to pay $25 million at closing by Aug. 30 and $5 million in future royalty payments, Range said.
The purchaser also paid a $1 million non-refundable deposit because of previous delays in completing the transaction.
Peter Landau, Range executive director, said the finalization of the sale documentation will significantly strengthen Range's balance sheet and allow the company to redeploy proceeds into international assets, including Colombia and Trinidad.
“In addition to the proceeds from the sale, we are also in the final stages of completing the reserve based lending facility for Trinidad, which will leave the company well positioned for significant operational growth,” he said.