Range Resources buys minority stake in Indonesia's Perlak field

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