StockMarketWire.com - Range Resources announced a corporate restructure after it posted a deep first-half loss that included a complete write-off of its Indonesian assets.

Pre-tax losses for the six months through December amounted to $62.9m, widening from losses of $8.5m on-year.

Revenue rose 30% to $7m thanks to higher oil prices but production fell 4% due to extreme weather conditions; infrastructure constraints and strike action.

The company booked a $30.2m impairment charge on its Trinidad and Indonesia assets.

In Trinidad, it was due to a combination of lower assumed long-term oil prices together with a deferred work programme.

In Indonesia, the impairment was due to results from work programme being below expectations and continued difficulties experienced with operations.

'We have identified the need to improve efficiencies and cost base of our operations and initiated a corporate restructuring of the Trinidad business as a result,' chief executive Kerry Gu said.

'In Indonesia, disappointingly the results of the work programme have been below our expectations and the operator has continued to experience difficulties with establishing sustained and continuous production from the field,' he added

'We, therefore, have decided not to progress with any further investment in this project and are exploring opportunities to dispose of our interest.'

'We have fully impaired the investment to date in Indonesia. Additionally, we have made an impairment on the Trinidad asset value to reflect a lower assumed commodity pricing and a deferred work programme.

The company also said it had agreed to a medium term extension to its debt repayment obligations, with no payments of principal or interest due until 2022 at the earliest.

'I am delighted to report that we have been able to sign a conditional agreement to substantially restructure the payable balance and extend the repayment profile,' Gu said.

'This allows the company to move forward with growing the business, progressing with new opportunities and demonstrating profitability without any repayments due until 2022 at the earliest.'

'I remain optimistic of the company's future and once again thank all shareholders and finance partners for their continued support.'


At 9:13am: [LON:RRL] Range Resources Ltd share price was 0p at 0.03p



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