Range is pleased to announce that, further to the announcement on 22 April 2014, the Company has entered into an Integrated Master Services Agreement with LandOcean Energy Services Co Ltd (“LandOcean”) (SHE:300157). The agreement provides Range with an extremely capable and technically sophisticated preferred services provider. In addition, Range and LandOcean have agreed a financing package of up to US$50 million.
Integrated Master Services Agreement
According to the Integrated Master Services Agreement (“IMSA”), LandOcean will act as the preferred services contractor (subject to all tendering and procurement rules) for Range for oilfield services including geoscience, engineering, procurement and construction. Services provided under the IMSA will be agreed in individual purchase orders as the need for services arises. LandOcean will work for Range as a contractor on a "net cost plus" basis to be agreed in each Purchase Order. In addition, where services under a purchase order have been provided and have directly resulted in increased production for Range, LandOcean will be entitled to an incremental production bonus share of Range's after costs and capital expenditure. This incremental production bonus structure ensures LandOcean are incentivised to maximise production and cash flows for Range. The IMSA will last up to eight years and could cover a total contract value of up to US$400 million over this period.
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