viewRange Energy Resources Inc

Range Energy completes first tranche of private placement

Majority shareholder Gulf LNG America gave strong backing to the fund-raising

Earlier this month, Range revealed positive results from the Shewashan-2 well.

Range Energy Resources Inc. (CNSX:RGO) has closed the first tranche of the non-brokered private placement announced last week.

The Kurdistan-focused oil junior placed 18.84mln units at a price of 3.5 cents per unit, raising gross proceeds of around C$659,260.

A unit comprises one common share and one transferable share warrant. Each warrant entitles the holder to buy one additional common share for a period of five years, at a price of five cents.

Majority shareholder Gulf LNG America LLC bought a large chunk of the shares, coughing up around C$449,260 for 12.84mln units. The purchase took its holding in Range Energy up to 571mln shares, representing 69.71% of the share capital of the company, on top of which hit has warrants that could be converted into a further 441mln shares.

Were Gulf to fully exercise its share purchase warrants, it would own 1,012mln Range Energy shares, which would represent 80.31% of the company's share capital as enlarged by the newly issued shares.

Immediately prior to the private placement, Gulf held 558.4mln common shares of Range, giving it a 69.75% stake.

The capital from the offering will be used by the company to continue to fulfill its obligations to joint venture participants so that the development of the Khalakan block in the Kurdistan region of Iraq can continue, as well as to provide general working capital.

The company has an indirect 24.95% interest in Gas Plus Khalakan Limited, which as the sole contractor of the Khalakan production sharing contract has an 80% stake in the asset alongside the Kurdistan Regional Government (which retains a 20% carried stake).

Quick facts: Range Energy Resources Inc

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