..........bit better than a bridge: Trinidad focussed oil junior...

..........bit better than a bridge:

Trinidad focussed oil junior Range Resources Ltd (LON:RRL, ASX:RRS) has agreed a deal to acquire Range Resources Drilling Services Limited (RRDSL), the company that provides it with drilling and well services.
RRDSL owns a modern fleet of 12 rigs and currently employs over 160 staff.
Range expects the deal will significantly lower its operating and drilling costs and provide substantial operational flexibility.
At the same time, the company also anticipates RRDSL will be in a good position to take advantage of increasing activity levels in the exploration and production sector, and sees an opportunity to grow the unit into a leading oilfield services provider in the Caribbean.
Range will pay US$5.5mln, and it will assume RRDSL’s debts (a US$19.5mln loan to LandOcean). The company doesn’t have to pay the deal consideration for three years after completion, though the balance accrues interest at 6% per year.
Debt due to LandOcean is also due payable in three years from completion, and it too carries interest at 6% pa.
The deal constitutes a reverse takeover, under AIM rules, and the group’s shares will be suspended from trading on AIM while the acquisition process advances.