Range Resources to sell four drilling rigs to Wilson Energy

International oilfield services provider Range Resources has signed a sale and purchase agreement (SPA) with Canada-based Wilson Energy to sell four drilling rigs and related equipment.

Signed by Range Resources’ Trinidad and Tobago registered subsidiary Range Resources Drilling Services (RRDSL), the SPA with Wilson Energy includes the sale of four onshore drilling rigs number 16, 17, 18, and 19 and related equipment.

Upon completion of the deal, Wilson Energy will make a full payment of $3.6m to Range Resources.

The completion of the transaction is subject to final inspection of the rigs and equipment, as well as delivery of various documents related to the rigs by the seller to the buyer.

The transaction is also subject to required documentation on ownership of the rigs, which needs to be approved by the Trinidad Transport Board and the Licensing Authority.

Range Resources chairman Kerry Gu said: “Given challenges experienced by RRDSL at winning new service contracts, as well as our proposed sale of Trinidad upstream assets (RRTL sale) announced in September, we have been actively looking at options to further reduce costs of our operations, selectively streamline our assets and increase our liquidity.”

The asset value of the four rigs is valued at $17,361,885 as on 30 June and the estimated loss before tax with respect to these rigs for the year ended on 30 June is $2,155,488, Range said.

Upon successful completion of the transaction, RRDSL’s residual rigs will comprise seven workover and swabbing rigs, as well as one drilling rig.

In July, Range Resources agreed to sell a 2% proportionately reduced overriding royalty interest in 350,000 net surface acres in south-west Appalachia for $600m.