STAR PHOENIX GROUP LTD. Quarterly Activities Report
The Company provides its quarterly activities report for the period ended 31 March 2016.
Trinidad operations
· The Company's oil and gas production for the period was 50,148 bbls (average of 551 bopd) net to Range, which is broadly unchanged from 547 bopd in the previous quarter. This production is in line with the Company's expectations with the next material production increase expected once the new development wells are brought into production and the waterflood projects commence production.
· Following a completed review of the 2016 work programme, the Company identified implementation of its Morne Diablo and Beach Marcelle waterflood projects as the highest priority.
· Water injection on the Morne Diablo project commenced in December 2015 with first production as a result of waterflooding expected in 2H 2016.
· Water injection on the South East Block of the Beach Marcelle project is expected to commence in Q2 2016 with first production anticipated during Q4 2016.
· In addition, the management has prioritised four material development wells and one high impact exploration well for drilling in 2016. These wells were selected based on their risk and economic returns.
· The first of the four development wells, MD 250 has been drilled to a total depth of 4,100 feet during the quarter. The initial log evaluations have identified multiple hydrocarbon bearing zones which will be tested to determine the well's producing potential. The remaining wells will spud once RRDSL's drilling rigs are certified by the government in Trinidad.
· The capex budget for 2016 has been estimated at approximately US$26 million, funded by existing credit facility with LandOcean Energy Services Co., Ltd ('LandOcean').
· The production guidance was revised during the quarter with the expected stabilised production goal of 2,500 bopd by the end of 2017.
Non-core assets
· During the quarter, the Company received a notice from Agencia Nacional de Hidrocarburos, stating that the licences over the three exploration blocks, PUT-5, VMM-7, and VSM-1 in Colombia have been revoked.Both the Company and the consortium have obtained legal advice with regard to this matter and will lodge an appeal against the decision.
· The Company continues to pursue disposals of its interests in Georgia and Guatemala.
Corporate and Financial
Management changes: During the period, Mr Yan Liu tendered his resignation as Chief Executive Officer and Trinidad General Manager, effective 31 January 2016. Mr Liu remains on the Board as a Non-Executive Director. Mr Lijun Xiu has been appointed as Trinidad General Manager.
Acquisition strategy:In line with the growth strategy of the Company to create value for shareholders, and to provide Range with additional production and revenue, the Board continues to evaluate potential acquisitions of high quality assets at attractive valuations. The Board believes that Company is well positioned to take advantage of this opportune environment for acquirers.
US$50 million trade financing package:During the quarter, Range continued to work with LandOcean and Sinosure to finalise the US$50 million credit facility. Pending completion of the Sinosure facility, LandOcean will provide Range with credit terms of 720 days for all work undertaken as part of purchase order 2 of US$50 million (includes capex for waterflood and drilling programme).
Receipts from product sales and related debtors (for the 3 months to 31 March 2016):of US$1.4 million, compared with US$2.1 million in the previous quarter. The decrease was due to the lower oil price received during the period.
Payments for development, production and exploration(for the 3 months to 31 March 2016): of US$1.0 million,compared with US$1.7 million in the previous quarter. The decrease was primarily due to a decrease in royalties paid owing to the fall in revenue and continued close monitoring of cash expenditure.
Cashat 31 March 2016:of US$21.6 million, compared with US$21.9 million in the previous quarter reflecting only a minimal net outflow during the period.
Petroleum tenements held at the end of the quarter (Appendix A)
Tenement Reference | Location | Working Interest | Operator |
Morne Diablo | Trinidad | 100% | Range |
South Quarry | Trinidad | 100% | Range |
Beach Marcelle | Trinidad | 100% | Range |
Guayaguayare Shallow* | Trinidad | 65% | Range |
Guayaguayare Deep* | Trinidad | 80% | Range |
St Mary's | Trinidad | 80% | Range |
Block 1-2005 | Guatemala | 20% | Latin American Resources Ltd |
Block Vla | Georgia | 45% | Strait Oil & Gas |
Notes:
*Subject to final government approvals
During the quarter, the Company received a notice from Agencia Nacional de Hidrocarburos, stating that the licences over the three exploration blocks, PUT-5, VMM-7, and VSM-1 in Colombia have been revoked. Both the Company and the consortium have obtained legal advice with regard to this matter and will lodge an appeal against the decision.
No other petroleum tenements or farm-in, farm-out interests were acquired during the quarter.
Contact Details | |
Range Resources Limited Evgenia Bezruchko (Group Corporate Development Manager) e.admin@rangeresources.co.uk t.+44 (0)20 7520 9486 | Cantor Fitzgerald Europe (Nominated Advisor and Broker) David Porter / Sarah Wharry (Corporate Finance) Richard Redmayne (Corporate Broking) t.+44 (0)20 7894 7000 |
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013
Name of entity |
RANGE RESOURCES LIMITED |
ABN | Quarter ended ('current quarter') | |
88 002 522 009 | 31 March 2016 |
Consolidated statement of cash flows
Cash flows related to operating activities | Current quarter $US'000 | Year to date (9 months) $US'000 | |
1.1 | Receipts from product sales and related debtors | 1,419 | 6,151 |
1.2 | Payments for (a) exploration & evaluation (b) development (c) production (d) administration | - (359) (616) (795) | (56) (4,014) (3,254) (3,512) |
1.3 | Dividends received | - | - |
1.4 | Interest and other items of a similar nature received | 19 | 29 |
1.5 | Interest and other costs of finance paid | - | (9) |
1.6 | Income taxes received/(paid) | - | 648 |
1.7 | Other | - | - |
Net Operating Cash Flows | (332) | (4,017) | |
Cash flows related to investing activities | |||
1.8 | Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets | - - - | - - (37) |
1.9 | Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets | - - - | - - - |
1.10 | Loans to other entities | - | - |
1.11 | Loans repaid by other entities | - | - |
1.12 | Other (provide details if material) | - | - |
Net investing cash flows | - | (37) | |
1.13 | Total operating and investing cash flows (carried forward) | (332) | (4,054) |
1.13 | Total operating and investing cash flows (brought forward) | (332) | (4,054) |
Cash flows related to financing activities | |||
1.14 | Proceeds from issues of shares, options, etc. | - | 22,316 |
1.15 | Proceeds from sale of forfeited shares | - | - |
1.16 | Proceeds from borrowings | - | - |
1.17 | Repayment of borrowings | - | (7,226) |
1.18 | Dividends paid | - | - |
1.19 | Other (provide details if material) | - | - |
Net financing cash flows | - | 15,090 | |
Net (decrease)/increase in cash held | (332) | 11,036 | |
1.20 | Cash at beginning of quarter/year to date | 21,921 | 10,692 |
1.21 | Exchange rate adjustments to item 1.20 | (21) | (160) |
1.22 | Cash at end of quarter | 21,568 | 21,568 |
Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities
Current quarter $US'000 | ||
1.23 | Aggregate amount of payments to the parties included in item 1.2 | 44 |
1.24 | Aggregate amount of loans to the parties included in item 1.10 | - |
1.25 | Explanation necessary for an understanding of the transactions | |
Payment of directors' fees | ||
Non-cash financing and investing activities
2.1 | Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows |
N/A |
2.2 | Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest |
N/A |
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available $US'000 | Amount used $US'000 | ||
3.1 | Loan facilities | - | - |
3.2 | Credit standby arrangements | - | - |
Estimated cash outflows for next quarter
$US'000 | ||
4.1 | Exploration and evaluation | - |
4.2 | Development | 360 |
4.3 | Production | 870 |
4.4 | Administration | 850 |
Total | 2,080 |
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. | Current quarter $US'000 | Previous quarter $US'000 | |
5.1 | Cash on hand and at bank | 13,568 | 13,921 |
5.2 | Deposits at call | - | - |
5.3 | Bank overdraft | - | - |
5.4 | Other (provide details)* | 8,000 | 8,000 |
Total: cash at end of quarter (item 1.22) | 21,568 | 21,921 | |
*US$8 million is held as cash collateral to support the performance bond issued to MEEI in respect of St Mary's work programme.
Changes in interests in mining tenements and petroleum tenements
Tenement reference and location | Nature of interest (note (2)) | Interest at beginning of quarter | Interest at end of quarter | ||
6.1 | Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed | PUT-5, Colombia VMM-7, Colombia VSM-1, Colombia | 10% 10% 10% | Nil Nil Nil | |
6.2 | Interests in mining tenements and petroleum tenements acquired or increased | Nil |
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number | Number quoted | Issue price per security (see note 3) (cents) | Amount paid up per security (see note 3) (cents) | ||
7.1 | Preference +securities(description) | Nil | |||
7.2 | Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions | ||||
7.3 | +Ordinary securities | 7,589,790,100 | 7,589,790,100 | ||
7.4 | Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs | NA | NA | ||
7.5 | +Convertible debt securities (description) | Nil | Nil | ||
7.6 | Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted | ||||
7.7 | Options(description and conversion factor) | 7,058,824 146,533,850 5,000,000 476,190 952,381 6,714,284 9,000,000 3,947,368 8,666,670 694,445 2,205,885 1,250,000 17,333,336 3,000,001 5,153,846 2,000,000 2,000,000 5,000,000 5,180,000 23,636,364 7,500,000 31,000,000 1,000,000 161,472,247 118,729,593 14,000,000 194,585,862 172,557,274 80,000,000 | Exercise price £0.17 £0.04 £0.037 £0.021 £0.021 £0.021 £0.020 £0.019 £0.018 £0.018 £0.017 £0.016 £0.015 £0.015 £0.013 A$0.0321 £0.012 £0.011 £0.075 £0.011 £0.03 £0.01203 A$0.05 £0.01 £0.02 £0.01 £0.01 £0.02 £0.01 | Expiry date 30 April 2016 30 April 2016 11 July 2016 25 July 2016 29 July 2016 31 August 2016 31 August 2016 30 September 2016 30 September 2016 31 October 2016 31 October 2016 31 October 2016 31 October 2016 30 November 2016 30 November 2016 11 December 2016 31 December 2016 31 December 2016 31 January 2017 31 January 2017 9 September 2017 15 October 2017 31 January 2018 14 July 2018 14 July 2018 31 August 2018 3 September 2019 3 September 2019 30 March 2020 | |
7.8 | Issued during quarter | 10,000,000 | £0.01 | 31 August 2018 | |
7.9 | Exercised during quarter | Nil | |||
7.10 | Expired during quarter | 80,508,341 5,000,000 5,000,000 20,000,000 | $0.05 $0.10 $0.06 £0.01 | 31 January 2016 31 January 2016 10 February 2016 18 March 2016 | |
7.11 | Debentures (totals only) | Nil | |||
7.12 | Unsecured notes(totals only) | Nil | |||
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Date: 21 April 2016
David Chen, Chairman
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The 'Nature of interest' (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securitiesThe issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resourcesand AASB 107: Statement of Cash Flowsapply to this report.
5 Accounting StandardsASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
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Range Resources Limited issued this content on 21 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 21 April 2016 06:20:25 UTC
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