Story from ArtraderIs this then finally 'Game On'BRIEF-China's...

Story from Artrader
Is this then finally 'Game On'

BRIEF-China's LandOcean Energy Services signs contract with Australia's Range Resources Fri 30/05/2014 13:22

May 30 (Reuters) - LandOcean Energy Services Co Ltd

300157.SZ

* Says signs services contract with Australia's Range Resources for $400 million in Trinidad

Source text in Chinese: http://link.reuters.com/fyg79v

Further company coverage: 300157.SZ

(Reporting by Hong Kong and Singapore newsrooms)
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Securities Code: 300157 Securities referred to: LandOcean Announcement Number :2014-042 LandOcean National Petroleum Technical Services Corporation Significant progress on the contract announcement Risk Warning: 1. Risk of contract performance "General Services contract" to perform for a period of eight years, due to the longer period of contract performance, the performance may be present during the Uncertainties. 2. Performance capabilities risk Range Company, since the implementation of oil exploration and development projects results have some uncertainty on the The purpose of sustained performance capabilities can bring a corresponding uncertainty; LandOcean, despite already has integrated oilfield services Ability, but to fulfill integrated oilfield services in the execution of the contract in the first time, to high-quality completion of the project still has a Given challenge. 3. The risk of exchange rate changes The contract is denominated in U.S. dollars, the contract amount of exchange rate fluctuations might be involved in the contract have an impact, there is a certain risk. 4. Government approval risk Range operations in Trinidad more than two years, has cultivated a well-known local political, economic, legal, Cultural environment management team, and established good contacts with government agencies. Nevertheless, Range Trinidad oil Part of the drilling field blocks, water and other construction projects may still need government approval. Therefore, the government approved by the uncertain Factors still exist, may lead to the workload and duration of construction projects are affected. 5 total contract revenue estimate and the risk of error The total amount of the contract shall be signed by the actual total order prevail. Revenue estimates may differ from the actual results of the implementation. 6 contract performance risks exist by force majeure. The Company and all members of the Board to ensure that the information disclosed is true, accurate and complete, no imaginary False records, misleading statements or material omissions.
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LandOcean National Petroleum Technical Services Corporation (hereinafter referred to as the "Company" or "Hengtai Epps "or" contractor ") and Range Resources Limited (hereinafter referred to as the" Range "or" Range Company ") has on 21 April 2014 in Beijing signed a" strategic alliance letter of intent. "By Negotiations, the two sides in May 29, 2014 signed the "General Services contract." Now the major Progress of the contract notice as follows: First, the main contents of the contract According to "General Services contract," LandOcean shall Range provides oilfield project in Trinidad Exploration and development of integrated services. The country is currently in development yield three blocks and two exploration projects Range Company Blocks, is the country's largest onshore operators. The following is the main content of the contract: (A) the contract amount Both sides expect total orders under this contract is four hundred million U.S. dollars (lowercase: USD 400,000,000.00), This amount can be adjusted according to actual needs, specific tasks will be agreed by the order. (B) the duration of the contract This contract since May 29, 2014 came into force, the contract is valid for eight (8) years, as both sides Agreed to extend. (C) contractors and contract managers Contractor (LandOcean) should be appointed as the contract with the engineering, procurement and construction of properties under the There oilfield services contract manager. (D) Contract Margin RANGE LandOcean three phases to provide a total $ 50 million contract deposit, where the first Of providing $ 20 million. Before the contract deposit paid, Range will first provide accredited by LandOcean on margin and earnings Bank guarantees or other financial institution guaranteed service costs. Range will pay the financial costs of the contract deposit. Among them, the financial cost of the first phase of the contract margin 10% per year, for the first time to pay deposit finance costs for the first time 13 months guarantee payment date, every six Months in arrears. Second, the financial cost of the third phase of the contract will be agreed margin. Range deposit will begin receiving date 2 years after the return of the contract deposit. Will be divided into 36 equal monthly installments Returned. (E) compensation for services
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1 LandOcean borne by the task, the smallest margin orders return of 15%; 2 After the tender shall be borne by the third party tasks LandOcean will get 10 percent of their contract amount as Contract Manager service charge. (Vi) increase the bonus Range will be a certain percentage of the bonus value of net oil recovery as part LandOcean services increase. Specific agreement include: 1 In the Block Production Sharing Contract in the applicable prize to increase to 10% of net recovery value of crude oil. Crude oil net recovery value = Cost + Profit Oil - non-recoverable costs Note: After internal company estimates, the net recovery value could be expected between 25-45 U.S. dollars a barrel. 2 in block production sharing contract does not apply, the prize was a net increase of 12.8% oil recovery values. Net recovery value = crude oil sales revenue - operating expenses - Capital expenditures - Oil Tax Note: After internal company estimates, the net recovery value could be expected between 0-30 U.S. dollars per barrel. (Vii) Risk Management The two sides agreed to fine reservoir studies prepared by the LandOcean and optimize reservoir engineering, production engineering, Drilling and ground engineering construction engineering program, pursuant to formulate plans to increase investment projects implemented in phases, Also at the end of each stage of the implementation of the results were summarized, and adjust the next phase of technical solutions and, if necessary Implementation plan to ensure that the entire project implementation to fully avoid the risk, obtain desired results. (H) order signed circumstances In the same time, "General Services contract" signed by the two sides signed the first contract under the total order, Orders contents into three blocks increase research development program, amounting to five hundred ten thousand U.S. dollars (lowercase: 5,000,000 Dollars). Second, the impact of contracts on listed companies (A) The contract will not have a significant impact on the Company's 2014 results. (B) Since 2015, the revenue of the contract depends on the service workload corresponding increase in gross profit and the yield on The prize money should be in two parts. Internal estimates by the company:
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1, is expected to total service orders annually approximately $ 30 million to $ 60 million, corresponding to the gross Run around 4.5 to 9 million U.S. dollars per year; 2, according to the U.S. Forrest A. Garb & Associates, Inc. Estimate, and by British Gaffney, Clines and Associates Audit, Range in Trinidad three blocks have been developed projects increase Remaining recoverable proved reserves of 1,750 million barrels of proved plus probable remaining 2,200 million barrels of recoverable reserves. When The day before the oil production of 500-600 barrels. But prize money increased production and increased oil production in the corresponding need to Hengtai Economic evaluation of the results of technology development plan prepared Epps estimate. (C) through the implementation of this project will further enhance LandOcean provide oilfield production to the international market Integrated service capabilities. Third, the contract review process (A) the company's internal review process 1, the second session of the 21st meeting of the Board of Directors adopted the "major contract signed Motion ", the company agreed to sign this major contract. 2, the second session of the eleventh meeting of the Board of Supervisors passed the "on major contracts signed Motion ", the company agreed to sign this major contract. 3 independent directors issued a separate opinion on this: The company signed a major contract, the company is out of consideration for future development, in line with the company established hair Development strategies conducive to long-term development, in the interests of the company and all the shareholders, there is no damage to the majority of Behavior interests of minority shareholders, the company does not have a significant impact on the operational independence. (B) the sponsor views CITIC Securities Co., Ltd. sponsor after checking that: (1) LandOcean have to Range Provides oilfield services capabilities. (2) Range and LandOcean integrated services contract signed agreement The contents belong to the scope of its operations, Range rich oil reserves, with the likelihood of compliance. (3) LandOcean and Range of integrated services contract signed strategic cooperation and currently only the overall size of the contract Was confirmed. The longer term performance of the contract, LandOcean actual services under the contract in accordance with Progress and timely disclosure of information on important matters, this sponsor Teti please investors have been Concerns related to investment decisions should be made ??in a comprehensive understanding of LandOcean information disclosure, can not rely solely
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The verification opinion investment decisions. Verification opinion (three) lawyer Zhong Lun Law Firm After verification after that: on "General Services contract" transactions The other - the basic situation of the company is real RANGE, RANGE possess with LandOcean signed the "Comprehensive The total aggregate service contract "main qualifications obtained by each of the parties has signed the" General Services contract "required Approval and authorization to sign the contract and the contract is legal, real and effective. Four other instructions (A) The Company will disclose the fulfillment of major contracts in the periodic reports; (B) the reference documents: 1, "CITIC Securities Co., Limited on LandOcean shares of oil and gas technology services Secretary for the daily operations of major contracts the parties ability to perform verification opinion "; 2, "RANGE RESOURCES LIMITED and LandOcean shares of oil and gas technology services limited Total consolidated service contract "; 3, "Zhong Lun Law Firm Limited on LandOcean shares of oil and gas technology services RANGE RESOURCES LIMITED Division and signed 's legal opinion. " LandOcean National Petroleum Technical Services Corporation Director Thing Can May 30, 2014