Range Ltd. Sells Chapman Ranch Assets

Plans to sell its interest in the North Chapman Ranch and East Clarksville fields for $30 million.

Range Resources Ltd. (AIM: RRL) plans to sells its interest in the North Chapman Ranch and East Clarksville fields to an undisclosed buyer for $30 million.

The purchase price includes $25 million due at closing, which is scheduled to occur in the coming weeks, and another $5 million in royalty payments from future production. Range holds a 25% interest in the initial Smith #1 well and a 20% interest in further wells on the North Chapman Ranch project, which encompasses about 1,680 acres in Texas. total proven reserves in the project are estimated at 16.4 million barrels of oil equivalent (BOE).

In addition, Range holds a 21.75% interest in the East Texas Cotton Valley Prospect in Red River County, Texas, which encompasses about 1,570 acres. Proven reserves in this prospect are estimated at1 million BOE.

"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,” said Pete Landau, Executive Director for Range.

“The 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,” he said.