17 June 2014
ASX Code: RRS and AIM Code: RRL
Range Resources Limited ("Range" or "the Company") Trinidad Approves New Positive Fiscal IncentivesRange is pleased to confirm that, further to announcement of 16 September 2013, the Government of Trinidad and Tobago has approved and adopted the proposed budget incentives for oil and gas companies introduced by the Minister of Finance and Economy of Trinidad and Tobago in the 2014
Budget Statement. These newly proposed budget incentives, which especially reward companies with accelerated development and exploration programmes including Range, are expected to have a significant positive impact on the Company's cash flows and returns from its ongoing production growth. These changes will be effective retrospectively from January 1, 2014.
Commenting on today's announcement, Rory Scott Russell, CEO, said:"Range is fully committed to growing its business in Trinidad and we are therefore delighted with the ratification of these new positive fiscal incentives. Operating in a favourable economic environment will bring significant benefits to the Company as we continue to increase production and unlock value from our core development assets in Trinidad."
The key changes to the fiscal regime that impact Range can be found in the table at the end of this announcement.
Yours faithfully
Rory Scott Russell Chief Executive OfficerAustralia
Ground Floor, 1 Havelock Street, West Perth WA 6005, Australia t: +61 8 9488 5220, f: +61 8 9324 2400e: admin@rangeresources.com.au
London
Suite 1A, Prince's House, 38 Jermyn Street, London SW1 6DNt: +44 (0)207 025 7040, f: +44 207 287 8028
w: www.rangeresources.com.au
Contacts Range Resources Limited Rory Scott Russell | Buchanan (Financial PR - UK) Ben Romney / Helen Chan T: +44 (0) 20 7466 5000 E: rangeresources@buchanan.uk.com |
GMP Securities Europe LLP (Joint Broker) Rob Collins / Liz Williamson T: +44 (0) 207 647 2800 | Cantor Fitzgerald (Nominated Advisor and Joint Broker) David Porter / Tom Sheldon / Julian Erleigh (Corporate finance) / Richard Redmayne (Corporate broking) T: +44 (0) 20 7894 7000 |
PPR (Financial PR - Australia) David Tasker T: +61 (8) 9388 0944 E: david.tasker@ppr.com.au |
The key changes to the fiscal regime that impact Range are summarised in the table below.
Current Revised (effective January 1, 2014) Investment tax credit · Tax credit of 20% on qualifying capex · Unchanged
· Tax credit can only be used in year incurred · Excess investment tax credit may be carried forward
and offset in arriving at the SPT liability for the year immediately following the financial year in which the credit were generated
Intangible expenditure
· 2014 to 2017 - Allowance of 100% of costs
· Initial allowance (Yr 1) - 10% of costs
· Annual Allowance (Yr 1) - 20% of residue
Balance
· Annual allowance (Subsequent years) - 20%
reducing balance
Tangible expenditure
· Initial allowance (Yr 1) - 20% of costs
· Annual Allowance (Yr 1) - 20% of cost less
Initial allowance
· Annual allowance (Subsequent years) - 20% of cost less initial allowance
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DevelopmentIntangible expenditure
Intangible & tangible expenditure
· Initial allowance (Yr 1) - 10% of costs
· Annual Allowance (Yr 1) - 20% of residue balance
· Annual allowance (Subsequent years) - 20%
reducing balance
Tangible expenditure
· Initial allowance (Yr 1) - 50% of costs
· Annual Allowance (Yr 2) - 30% of costs
· Annual allowance (Yr 3) - 20% of costs
· Initial allowance (Yr 1) - 20% of costs
· Annual Allowance (Yr 1) - 20% of cost less initial allowance
· Annual allowance (Subsequent years) - 20% of cost less initial allowance
Workovers & Qualifying Sidetracks
· 100% deduction of intangible costs incurred
in the current year
· 100% deduction of all tangible and intangible costs
incurred
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