Range Resources erupts at Georgia government claim

Range Resources noted an article, published on 3 April by the Government of Georgia - represented by the LEPL State Agency of Oil and Gas of the Ministry of Energy of Georgia - announcing an open international tender on Block VIA in Georgia on Wednesday.

The AIM-traded firm claimed that it, through its 45% shareholding in Strait Oil and Gas, holds an interest in the production sharing contract over Block VIA dated 29 March 2007.

It said it had been involved in the project since 2009, and had invested “very substantial” capital since that time with funds used to complete the minimum work programme stipulated by the PSC.

The agency previously confirmed to SOG that the minimum work programme had been satisfactorily completed, it added.

“Range firmly believes that the PSC over Block VIA remains valid and is in good standing,” it said in a statement.

“Range believes that any purported relicensing of Block VIA by the agency pursuant to the tender announcement would be a flagrant breach of the terms of the PSC.”

The company confirmed it contacted the agency to seek an amicable resolution and requested an urgent meeting.

“In the meantime, Range has engaged legal advisers and is exploring relevant routes to preserve the value of its investment.”

As at 31 December, Range had a carried value of $1.25m attributed to its interest in the project on its balance sheet.