In a deal worth US$3.2mln, paid out of existing cash resources, the company is acquiring an initial 23% stake in the Perlak field which is said to have a long history of oil production - with some 60mln barrels produced to date – albeit it is presently offline.
Perlak, located in northeast Sumatra, still has up to 500mln barrels of remaining in-place oil, according to Range, and it described that field as having high prospectivity and substantial reserves and resources growth potential.
The company intends to participate in a low-risk, low-cost work programme to re-start production from existing wells.
Range’s share of work programme costs is expected to be around US$2.3mln over three years. Once the initially agreed work programme is complete, Range’s stake in Perlak will increase to 42%.
Kerry Gu, Range chairman, in a statement, said: “The low acquisition cost, minimal work programme commitment and protection from underperformance present a very attractive opportunity for the Company to expand its footprint and potentially grow its reserves base.
“We look forward to the commencement of the work programme and unlocking the full potential of this highly prospective asset, which should deliver significant benefits to our shareholders in the form of increased production, reserves, and new development opportunities.”
Gu added: “In the meantime, we continue to progress with further acquisition opportunities of oil and gas assets in line with our stated acquisition-led growth strategy.”