Range Resources has announced it will acquire the remaining 90 per cent stake it does not already own in holding and subsidiary companies that hold three onshore oilfield production licenses in Trinidad.
Range said it would pay $US52 million and issue 35.8 million shares to purchase the interest through SOCA Petroleum.
The total production acreage covers 16,253 acres on the southern coast of onshore Trinidad, which are currently producing 600 barrels of oil per day.
Range said it would embark on a minimal work program to lift production to more than 4,000 barrels of oil per day within 36 months.
The proposed acquisition also includes a 100 per cent interest in a Trinidad-based drilling company, which owns onshore drilling equipment and related facilities.
Range Resources executive director Peter Landau said the acquisition was an "incredible opportunity" to complement range's asset base.
"Onshore Trinidad is a low cost, high operating margin environment with oil production sold at the wellhead and transported to the Pointe-a-Pierre Refinery, which has capacity for all additional planned production," Mr Landau said.
"The company believes there is significant potential for value enhancement gfiven the known management team and will target an ultimate production profile of up to 10,000 bopd over the next two to three years."
To fund the acquisition, Range has embarked on a £20 million share placement, at £0.17 per share.
Range said the placement was well oversubscribed and it was considering accepting an additional £5 million in oversubscriptions.
At close of trade today Range shares had shed 8.9 per cent to trade at 30 cents.
