Range Resources buys minority stake in Indonesia's Perlak field

Range Resources acquired an interest in Indonesia's Perlak field, which throughout its long history had produced close to 60m barrels, the group announced on Tuesday.

The AIM-listed outfit purchased a 23% interest in Perlak, which was located in Northeastern Sumatra for $3.2m to be funded from the existing cash resources of the company, payable in tranches.

Upon completion of the minimum work programme, its interest in Perlak would rise to 42%, the company said in a statement.

Range estimated material remaining oil in place, covering all resoruce and reserve categories, at as much as 500m barrels.

That, the company said: "demonstrates the high prospectivity of the field and substantial reserves and resources growth potential."

Under the terms of the deal, the group was also granted a long term licence expected to expire in 15 years on 31 March 2032.

Furthermore, the outfit was given a 'put' option, allowing it to sell its shares to the vendor at full investment cost as protection against possible underperformance.

The low risk low cost work programme was aimed at re-initiating production from the existing wells, firming up the field development plan and fully exploiting the potential resources.

The company's shares were flat at 0.340 by 9:20 BST