Range Resources is proposing a tie-up with International Petroleum that will see the combined group focused on the expansion and development of projects in Russia, Trinidad and onshore Africa. Range said Thursday that a share-swap deal between the companies would see International Petroleum taken over for approximately $108 million.
Range already holds assets in the Republic of Georgia, Texas, Trinidad, Colombia and Guatemala, while International Petroleum has assets in Russia, Kazakhstan and Niger. The merged entity would hold estimates proved (1P) reserves of 23.6 million barrels, with proved, probable and possible (3P) reserves amounting to 264 million barrels.
The combined production for the enlarged group would be approximately 1,000 barrels of oil equivalent per day, based on current output.
Key assets for the new business will include International Petroleum's interests in five projects in Russia. During the period from August 2012 to December 2012, the firm produced 25,000 barrels of oil from well number 52 at its 100-percent owned Zapadno-Novomolodezhny Project at an average flow rate of 197 barrels of ol per day.
The new business will see Chris Hopkinson appointed as managing director. Hopkinson, the current CEO of International Petroleum, has more than 23 years' experience in the oil and gas industry, including management positions with BG Group, TNK-BP, Yukos, Imperial Energy Corporation and Lukoil.
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