Mr. Donald Sheldon reports
RANGE ENERGY RESOURCES INC. ANNOUNCES FINANCING WITH STRATEGIC PARTNER
Range Energy Resources Inc. has signed a term sheet for an investment of up to $16.35-million from Texas-based Gulf LNG America, LLC. The transaction involves the issuance of up to 109 million common shares of Range. Gulf is an investment firm based in Houston, Tex., specializing in energy investments, including projects in the Middle East. Gulf president John Howland states, "We are very happy to commence investment in Range and become a strategic partner in Range's future growth."
The transaction contemplates an initial private placement of $4-million ($2-million from institutional investors and $2-million from Gulf) by the issuance of units at a price of 15 cents per unit. Each unit will consist of one common share and one share purchase warrant. Each share purchase warrant will entitle the holder to purchase one additional common share at 15 cents for a period of one year from the date of issue. The first closing is expected to occur by May 6. Range may pay finders' fees with respect to this placement, in accordance with applicable securities laws and the policies of the CNSX.
Subject to further due diligence and entering into a definitive agreement, and the completion of the first closing, Gulf will make a further $6,175,000 investment upon execution of the definitive agreement for Range's common shares at a price of 15 cents per common share. The second closing is expected to occur during the month of July, 2011. Gulf will make a further $8,175,000 investment in Range's common shares at a price of 15 cents per common share within one year of the second closing. Finances will be used to continue the exploration and development of Range's Khalakan block in Kurdistan, pursue other management and administrative, and oil and gas projects, and general corporate purposes.
All securities issued in the private placements will be subject to applicable regulatory hold periods. The contemplated transactions mentioned above are subject to regulatory approval. All dollar amounts in this press release are in Canadian dollars, unless denoted otherwise.
More about Gulf LNG America
Gulf LNG America is an affiliate of Crest Investment Company with the Crest group owning or controlling the majority of the Gulf capital. The Crest group has a history of investing in companies involved in oil and gas exploration, development, and production. Crest and Gulf share management and administrative duties for their global energy investments.
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