Range Energy {CSE: RGO} announce a commercial light oil discovery for their Khalakan JV project located in Iraqi Kurdistan.

Sadly Range are prevented from releasing full details of the discovery due to their Gas Plus Khalakan partners not sharing this information with them!

Range Energy Resources Inc. {CSE: RGO} announces that, on October 16, 2014, Gas Plus Khalakan (“GPK”), the sole contractor of the Khalakan Block in the Kurdistan Region of Iraq, announced by press release that it has declared the Shewashan light oil discovery commercial under the terms of the Khalakan Production Sharing Contract (the “PSC”) and is preparing a Field Development Plan for submission to the Ministry of Natural Resources (“MNR”) of the Kurdistan Regional Government.

The Company is a 24.95% indirect shareholder of GPK through its ownership of 49.9% of the shares of New Age Alzarooni 2 Limited (“NAAZ2”).  NAAZ2 owns 50% of the shares of GPK.

Toufic Chahine, the Chairman of the Company’s Board of Directors said:  “We are pleased to hear the news although the Company still hopes for more cooperation with our joint venture partners so that we could work together to achieve the best possible result for all.”

Range has no additional information on the extent of the discovery, including the number of barrels of oil that tests show can be produced from the Shewashan-1 well.

This is despite the favourable arbitration award that an arbitration panel issued last May that supports the Company’s right to obtain material information as to its investments in the Khalakan Block, neither NAAZ2 nor Black Gold Khalakan Limited, the other shareholder in NAAZ2, have complied with the arbitration award and provided Range with material information regarding the operations on the Khalakan Block.

The Company will continue to pursue its rights and remedies in an effort to obtain material information on Khalakan Block operations that it can report to its shareholders.

Comment

Great news for Range shareholders, only tempered by the fact that the company is unable to confirm the finer details of the actual discovery, as their partners on the project are not sharing information of the extent of the discovery.

Range Chairman, Toufic Chahine rightly points out that it would be so much better if all the partners worked together to create shareholder value for their respective companies.

This situation is absolutely ridiculous, and prevents Range from informing its own shareholders news that they ae legally obliged to!

What value is an arbitration award when, after the event, the companies concerned can simply refuse to comply?