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RRL Range Resources Limited

0.035
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Range Resources Limited LSE:RRL London Ordinary Share AU0000065989 ORD NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.035 0.03 0.04 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Range Resources Limited Annual Report 2016 (3696L)

03/10/2016 7:00am

UK Regulatory


Range Resources (LSE:RRL)
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TIDMRRL

RNS Number : 3696L

Range Resources Limited

03 October 2016

Annual Report 2016

Range today releases the financial report for the year ending 30 June 2016. A copy of the full Annual Financial Report is available on the Company's website www.rangeresources.co.uk and also the Australian Securities Exchange website www.asx.com.au (ASX code: RRS).

Commenting on today's announcement, Yan Liu, Chief Executive Officer, said:

"During the period, the Company has achieved a number of significant milestones as we move towards full implementation of the waterflood projects and growth in production. We continue to firmly believe in the long-term prospects of the Trinidad assets to deliver value to shareholders and look forward to continued progress. There is a lot of work to be done to start generating long-term sustainable profitability, but we are confident that the right building blocks are now in place and will remain focused on improving performance in the years ahead."

HIGHLIGHTS OF THE FINANCIAL YEAR

Completion of funding: The Company has established a stable funding position to underpin its growth by completing a US$30 million equity financing at a 50% premium to the share price.

Increase in reserves: The Company commissioned an independent reserves audit with 2P reserves increasing by 11% to 24.4 million barrels, which validates the quality and potential of the Trinidad assets.

Commencement of waterflood projects: Water injection on two waterflood projects commenced, which account for the majority of the Company's reserves. These projects will be crucial to increasing Trinidad production towards 2,500 bopd target by the end of 2017.

Significant improvement in HSE performance: During the year, all key HSE indicators substantially improved, including the Lost Time Incident frequency rate which decreased by 75%.

Royalty rates reduced in Trinidad: Range signed an agreement to reduce the overriding royalty rates on the Company's producing fields in Trinidad, which is particularly encouraging during the period of lower commodity prices.

Licences: The Company signed an amendment agreement to double its interest in the Guayaguayare block.

Strengthened technical team: Two new independent Directors and a Trinidad General Manager appointed, all bringing significant technical experience and broad industry knowledge.

Refined strategy of acquisition-led growth: The Company continues to pursue acquisition opportunities of new transformational assets, whilst continuing implementation of waterflood projects in Trinidad.

Continued strengthening of the relationship with LandOcean: The strategic partnership not only allows Range to benefit from LandOcean's technical expertise and vast experience, but also provides Range with financial flexibility from the beneficial credit terms.

Financial:

- Cash outflow from operating activities was significantly lower than the prior year at US$4.2 million (2015: US$7.0 million). Range benefits from the credit terms offered by LandOcean which minimises cash outflow whilst production growth is achieved from implementation of the waterflood programme and selected development drilling;

- The Group's revenue was US$7.1 million (2015: US$13.2 million), a decrease of approximately 46%. Group production was broadly stable for the year and the fall in revenue is due to reduced average oil price realised of US$36.40/barrel (2015: US$69.46/barrel);

- This fall in revenues contributed to an increase in the gross loss of US$7.8 million (2015: US$2.9 million). The other main factor in the gross loss was an increase for the year overall in operating costs to US$7.3 million (2015: US$6.4 million);

- General and administrative costs decreased materially by 66% overall during the year and totaled US$3.4 million (2015: US$9.9 million). This was achieved as a result of stringent cost cutting measures implemented with significant reduction seen in discretionary expenditure, lower staff costs and elimination of corporate management costs;

- During the year Range reduced the carrying value of the Trinidad assets by US$20.6 million to US$78.8 million, which was principally due to the substantial, and sustained drop in oil prices seen throughout the year. The majority of this impairment was reported during the half-year unaudited results announced in March and a small further impairment of US$3.4 million has been adopted to recognise historic wells which are no longer in production. This valuation does not take into consideration the inherent value in the exploration acreage and resource potential with the Trinidad assets and the Company continues to firmly believe in the long-term prospects of these assets to deliver value to shareholders;

- Total loss after tax for the year of US$43.9 million (2015: US$30.3 million). Excluding impairments however, the underlying loss after tax has improved by 15% to US$17.4 million (2015: US$20.4 million);

- Despite the impairments during the year and the loss from operations, the balance sheet overall remains strong with total assets of US$158.0 million (2015: US$161.9 million) and net assets of US$72.2 million (2015: US$95.0 million); and

- Total cash (including restricted cash) of US$21.0 million, together with the remaining funding available from LandOcean for the Trinidad work programme positions Range in a strong position to meet its growth ambitions during 2017.

Included with this announcement is a summary of Range's full year audited annual accounts for the year ended 30 June 2016 as extracted from the annual report, being:

   -      Consolidated Statement of Profit or Loss and Other Comprehensive Income; 
   -      Consolidated Statement of Financial Position; 
   -      Consolidated Statement of Changes in Equity; 
   -      Consolidated Statement of Cashflows; and 
   -      Notes to Financial Statements. 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

Statement from the Chairman and Chief Executive Officer

Dear fellow shareholder

2016 has been another year of low oil prices which continue to impact our industry. Despite this challenging environment, as a result of ongoing initiatives and a proactive approach to running a successful company, we have shown that Range is a fundamentally strong and resilient business.

The actions undertaken during the year were firmly focused on pursuing new projects, cutting costs, strengthening the balance sheet, and progressing waterflood projects in Trinidad. We have achieved a number of significant operational and corporate milestones, including:

   -- Increased 2P reserves in Trinidad by 11% to 24.4 mmbbl; 
 
   -- US$30 million equity financing completed at a 50% premium to the share price; 
 
   -- Extended credit terms agreed with LandOcean Energy Services Co., Ltd ("LandOcean") for oilfield work undertaken 
      in Trinidad; 
 
   -- Further Board and management restructuring completed, with Mr Zhiwei Gu appointed as a Non-Executive Chairman and 
      three new Non-Executive Directors appointed to the Board. Mr Lijun Xiu, an oil industry veteran with long and 
      distinguished career of over 30 years, appointed as Trinidad General Manager; 
 
   -- Significant progress on the waterflood programme continued with water injection commencing on two projects; 
 
   -- Four development wells successfully drilled during the period, with two further wells drilled subsequently to the 
      period end; 
 
   -- Substantial, positive progress achieved in obtaining acceptable outcomes to a number of historic legal issues; 
      and 
 
   -- Strong cash position of circa US$21 million (including restricted cash of US$8m). 

We have ended the financial year with increased reserves in Trinidad, strengthened technical expertise on the Board, cash position of circa US$21 million, and a mutually beneficial relationship with our strategic partner LandOcean. Range is a leaner, stronger and better organised company than ever before, ready to take on new opportunities that lie ahead and fulfil our growth ambitions.

Acquisition-led growth strategy

Following a Board review, our strategy has been refined and can be summarised as follows:

1. Optimise Trinidad assets by focusing on waterflood projects and continuing low cost production and reserves growth;

   2.   Pursue growth opportunities through acquisition of new assets; 

3. Build an asset base demonstrating significant production, reserves and cashflows, whilst maintaining further growth potential through selective exploration;

4. Continue to evolve through strong technical strategic partnerships, applying the best talent and the best technologies; and

   5.   Maintain financial strength, flexibility and stringent cost control. 

During the period, we have actively vetted numerous acquisition prospects. We are confident in the longer term oil price recovery and focused on taking advantage of the opportunities presented in this lower commodity price environment, which is favourable for acquirers and presents unique opportunities for companies with strong cash positions, like Range.

We have not limited ourselves to looking at traditional E&P projects and have expanded our search globally. Those projects that are in development / production stage, with near term cashflows, are of particular interest to Range. Attractive valuation is key, and having reviewed numerous opportunities, we have turned down a number of potential targets that we believed were overvalued.

We are continuing to actively pursue numerous new projects. We believe the Company and its team have all the credentials to take advantage of the current downturn in the industry and maximise future shareholder value through opportunistic acquisitions.

Realising value from Trinidad

2016 has been a year of record investment into our Trinidad operations, with over US$16 million incurred during the period. As a result of this investment, we expect to see a notable increase in production as we realise the inherent value in these assets from the successful implementation of the waterflood projects. Our ongoing commitment in Trinidad is to ensure that the business is self-sustaining over the long-term, and generates returns for shareholders particularly in a lower commodity price environment.

We have been working to reorganise our operations in Trinidad to cut costs, improve efficiencies and position ourselves for the future. We have already implemented material and sustainable cost reductions but there is a lot more to be done, particularly to reduce operating costs. We will continue to actively work with our partner LandOcean to drive costs down even further.

Mr Xiu has been appointed as Trinidad General Manager, to oversee all Trinidad operations and strengthen the local management team. He has a long and distinguished geological career of over 30 years working for China National Petroleum Corporation, and is a valuable addition to our management team.

Our assets in Trinidad provide a balance of exploration, appraisal, development and production activities. We are encouraged with the increase in our independently audited 2P reserves by 11% to 24.4 mmbbls during the year, which validates the quality and potential of the Trinidad assets.

During the period, we produced 193,868 bbls net to Range, which is broadly unchanged from our production last year. The production was line with our expectations, given the limited number of wells drilled during the period and our continued longer term focus on commencing production from waterflood projects.

During the period, waterflood projects were the biggest component in our capex programme, with approximately US$13.5 million incurred as follows:

-- Waterflood development work (well workovers, gathering station, water injection system, power supply, road improvements) - US$9.4 million;

   --      Design work (drilling engineering design, surface facility design) - US$1.2 million; 
   --      Studies and evaluation reports - US$1.6 million; and 

-- Infrastructure (power systems, roads, civil engineering, communication systems) - US$1.3 million.

As a result of this continued work, initial water injection commenced on two waterflood projects. Together with LandOcean, we are continuing to commission the remaining facilities and infrastructure, in order to increase water supply and achieve projected production rates towards our goal of 2,500 bopd by the end of 2017 (calendar year).

The exploration component also gives much to look forward to, and we are hopeful to commence drilling on the Canari North exploration prospect early in 2017 once the drilling rig becomes available.

Our commitment to Health, Safety and Environment ("HSE") is a number one priority for all our operations and is crucial to our success as a growing business. During the year, we have seen a substantial improvement in all key HSE indicators including Lost Time Incident ("LTI") frequency and environmental incidents, which is a notable achievement. The Company is proud to have decreased the LTI frequency rate by 75% to 0.61, which is significantly below the average of 1.35 reported by the International Association of Drilling Contractors for the onshore US Oil & Gas Industry.

We are encouraged by the support of Petroleum Company of Trinidad and Tobago Limited ("Petrotrin") and the Trinidad government who signed an agreement to reduce the overriding royalty rates on our producing fields in Trinidad. These incentives are particularly welcome during the period of lower commodity prices for producers like Range. We are hopeful that the government will continue to incentivise operators to invest into growing production onshore Trinidad through further incentives, such as reduced rates of Supplemental Petroleum Tax.

Our strategic partners

We always aim to build and maintain high quality long lasting relationships with our communities, governments and partners. We are delighted to have the ongoing support from our partner and oilfield services provider LandOcean, one of the largest listed oilfield services providers in China.

LandOcean provides an extensive range of services to the oil and gas industry internationally, from research and development of software technology to various product sales and the provision of technical services. Headquartered in Beijing, LandOcean has over 400 employees, and attracts top talent including professors, senior engineers, post-doctorates, doctors and masters in the fields of geology, geophysics, and reservoir engineering.

The two companies have been working together since 2014 and LandOcean has continued to support Range throughout the period despite the challenging macro-environment.

During the year, Range and LandOcean have focused on implementing the waterflood projects targeting to bring them into first production towards the end of 2016, with substantial progress made to date. The initial water injection has commenced on both projects as a result of the hard work of both teams, and the main effort now will be aimed at completing the full schemes and increasing water injection rates. LandOcean provides Range with credit terms of 720 days for up to US$50 million which covers work related to these waterflood projects.

During the period, LandOcean also added four brand new rigs to its fleet in Trinidad. The addition of these modern rigs has been extremely beneficial in delivering safe and efficient drilling operations and continuing Range's drilling campaign. Two of the rigs are already being successfully used, which has seen wells being completed ahead of schedule, and in line with high safety standards.

The strategic partnership not only allows Range to benefit from LandOcean's technical expertise and vast experience, but also provides Range with financial flexibility from the generous credit terms, as it allows the Company to repay LandOcean from future cashflows once the expected production levels ramp up. In addition, LandOcean has agreed to further extend its credit terms for drilling services and earlier work undertaken under the first purchase order. We look forward to continued strengthening of our relationship and mutually benefitting from our joint success.

During the year, we were also pleased to have completed funding with a new cornerstone investor, Beijing Sibo Investment Management LP ("Sibo"), which invested US$30 million into Range at a significant premium to the share price at the time of the transaction. This investment came at a time when securing funding was particularly challenging for oil juniors, therefore it is a true testimony of the underlying value of the Company's assets and the team.

Sibo has played a key role in strengthening our balance sheet and providing us with financial flexibility to consider new acquisitions. Sibo currently holds 32% interest in Range's share capital and has appointed Mr Yu Wang, as a representative Director during the period.

Platform for growth

During the period, we have appointed two new independent Non-Executive Directors, Mr Lubing Liu and Dr Yi Zeng, both bringing significant experience and broad industry knowledge. We are very fortunate to have attracted such high calibre oil industry veterans, from which Range will benefit considerably. We have the right mix of technical and management expertise to further strengthen Range's prospects and fulfil our growth ambitions.

The Company has gone through a significant investment phase in Trinidad over the last 12 months and the focus going forward will be on driving efficiencies to ensure the Trinidad business is self-sustaining over the long-term. The continued focus in the next year will be on the waterflood projects which account for the majority of reserves and is a critical element in our goal of increasing production and generating returns for shareholders.

We will continue to adapt to changes in the industry and are determined to maximise shareholder value. The remainder of 2016-2017 holds significant potential to add exciting new projects to our portfolio and build upon the share price recovery.

We would like to thank all shareholders for your support, and welcome those who joined during the year. We also thank our fellow Directors, staff and management team for their hard work over the past year and look forward to the continuing growth into the future.

Yours Faithfully

   Zhiwei Gu                                              Yan Liu 
   Chairman                                               Chief Executive Officer 

DIRECTORS' REPORT

The Directors of Range Resources Limited ("Range" or "the Company") and the entities it controls (together, the "Group") present the financial report for the year ended 30 June 2016.

DIRECTORS

The names of the directors in office and at any time during or since the end of the year are:

 
 Mr Zhiwei    Non-Executive 
  Gu           Chairman            appointed 25 May 2016 
              Non-Executive 
               Director 
 Mr Yan Liu   Executive Director   resigned 31 January 2016, 
                                    re-appointed 25 May 2016 
              Non-Executive        appointed 31 January 2016, 
               Director             resigned 25 May 2016 
 Mr David     Non-Executive 
  Yu Chen      Director            appointed 25 May 2016 
              Non-Executive 
               Chairman            resigned 25 May 2016 
 Ms Juan      Non-Executive 
  Wang         Director 
 Mr Yu Wang   Non-Executive        appointed 30 September 
               Director             2015 
 Mr Lubing    Non-Executive 
  Liu          Director            appointed 16 June 2016 
 Dr Yi Zeng   Non-Executive 
               Director            appointed 16 June 2016 
 

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

COMPANY SECRETARY

The following persons held the position of company secretary during the financial year:

Mr Nick Beattie

Ms Sara Kelly

PRINCIPAL ACTIVITIES

The principal activity of the Group during the financial year was oil and gas exploration, development and production in Trinidad. The Company holds further interests in non-core oil and gas projects in Georgia and Guatemala and continues to explore potential disposal options of its interests.

In line with the growth strategy of the Company to create value for shareholders, Range continues to evaluate potential acquisitions of high quality value-generating assets.

FINANCIAL RESULTS

-- The Consolidated Statement of Profit or Loss and Other Comprehensive Income for the financial year shows a net loss attributable to owners of US$43,874,885 (2015: net loss of US$30,279,054).

-- The Group's revenue was US$7,062,226 (2015: US$13,152,954). The decrease of US$6,090,728 (46% from prior year) was primarily due to lower oil prices in the 2016 financial year which averaged US$36.4/bbl. (2015: US$69.5/bbl.).

-- The net loss after tax from continuing operations was US$38,994,885 (2015: US$22,581,895). The increased loss is primarily due to an impairment charge against the carrying value of the Trinidad assets in the current year which totalled US$20,564,829

-- Net cash outflow from operating activities for the period was US$4,186,035 (2015: outflow US$6,955,264).

-- General and administrative costs overall decreased by US$6,548,456 (65% reduction) to US$3,400,038 (2015: US$9,948,494) as a result of material cost cutting measures implemented across the Group.

-- The net assets of the Group decreased by US$21,786,324 to US$72,237,132 (2015: US$95,023,456). This decrease is primarily due to the loss reported from operations combined with impairments made in the year to the Group's Trinidad asset (impairment of US$20,564,829), Georgian asset (US$3,750,000) and Guatemalan asset (impairment of US$1,000,000).

DIVIDS

No dividends have been declared, provided for or paid in respect of the financial year ended 30 June 2016 (2015: Nil).

Operations

TRINIDAD

The Company holds 100% interest in three onshore production licences - Morne Diablo, South Quarry and Beach Marcelle, as well as interests in two exploration blocks - St Mary's and Guayaguayare.

Given the continued lower oil price environment and in line with ongoing cost management, during the period the Company completed a review of its work programme for 2016 (calendar year). As a result, the Company identified implementation of its waterflood projects as the highest priority, which have subsequently been the focus of operations.

Production

The Company's oil and gas production for the period in Trinidad was 193,868 bbls (average of 531 bopd) net to Range. Production during the year was broadly unchanged from the previous year (2015: average of 562 bopd). This production is in line with internal expectations, given a limited number of development wells drilled during the period as well as reduced number of workovers undertaken.

Range continues with implementation of its waterflood projects and completion of the development work programme, aiming towards achieving production guidance of 2,500 bopd by the end of 2017 (calendar year).

Reserves

Range commissioned an independent reserves audit as at 30 June 2016 for the Company's licences in Trinidad. The audit report was compiled by the independent petroleum consultants, Rockflow Resources Limited ("Rockflow").

The audit showed an increase in the Company's total 2P reserves by 11% from the previously reported 22.0 MMBOE (30 June 2015) to 24.4 MMBOE. The reserve increase was a result of the adoption of a wider range of in-place volumes, and recovery estimates from waterflooding for the Beach Marcelle licence.

Development and workover programme

During the year, the Company drilled four development wells, as follows:

 
 Well     Field            Total Depth   Status 
                            (ft) 
-------  ---------------  ------------  ----------------- 
 MD 249   Morne Diablo     2,610         On production 
-------  ---------------  ------------  ----------------- 
 GY 679   Beach Marcelle   2,000         On production 
-------  ---------------  ------------  ----------------- 
 GY 680   Beach Marcelle   1,685         On production 
-------  ---------------  ------------  ----------------- 
 MD 250   Morne Diablo     4,100         Under production 
                                          testing 
-------  ---------------  ------------  ----------------- 
 

In February 2016, the Company identified five development wells for drilling, based on their risk and economic returns. The first of the five wells, the MD 250 well was drilled during the period (included in the table above).

Subsequently to the period end, the Company drilled two further wells, the MD 251 and the QUN 159 wells. The MD 251 well is a follow on well which was drilled to a total depth of 3,900 feet from the same drilling pad as the MD 250 well. The QUN 159 well was also successfully drilled to a total depth of 2,600 feet at the Morne Diablo field.

All three wells (the MD 250, MD 251 and QUN 159) are undergoing production testing. The remaining scheduled development wells to be drilled during 2016 (calendar year) include one well in Morne Diablo and one well in Beach Marcelle.

Given the Company's continued focus on delivery of the waterflood projects, Range will be scaling back on its other work programme in Trinidad, with no development wells currently planned for 2017.

The Company also reduced the number of workovers being undertaken, which contributed to the production decline during the period. Range will keep the workover programme under regular review and intends to continue workover operations on the most profitable wells.

Waterflood programme

Beach Marcelle South East block

The Company and LandOcean have been making continued progress with implementing the full waterflood scheme on the South East block of the Beach Marcelle project during the period, including workovers on the selected waterflood wells; repair work on these selected wells; installation of injection stations; engineering design of the gathering station; and installation of pipeline network.

Initial water injection commenced during the period at an average rate of approximately 600 barrels of water per day ("bwpd"). This is the maximum rate that can be achieved based on one water source well being used and power and infrastructure in the area. The water source well can produce higher volumes depending on power availability, which is expected to increase once power network installation has been upgraded.

In order to achieve the expected average production of 1,600 bopd from this block, Range estimates that approximately 11,000 bwpd of water injection rate is required. The Company will initially use water from water source wells, which will be supplemented by produced water as the project progresses. The number of water source wells will be adjusted as the availability of surface facilities is increased, and depending on the response from the aquifer. Water injection volumes will increase accordingly as additional wells are commissioned.

The Company has been working on the installation of a high pressure pipeline network, with the majority of work (7,220 m) already completed. Given that Range's Beach Marcelle field is located on the eastern side of Trinidad where numerous major operators have processing facilities and oil and gas pipelines that pass through the field, Range requires various permissions in areas where it plans to install the remaining water injection pipeline.

The Company has been working with the relevant operators to obtain the necessary approvals and is focused on securing these approvals as soon as possible. The remaining pipeline network (530 m) is expected to be completed once the agreement is reached with these operators.

The average production from the field over an 8-year period is expected to be approximately 1,600 bopd, subject to approvals in respect of the remaining pipeline installation and access to higher water injection volumes. Beach Marcelle waterflood production is estimated to be the largest contributor towards the 2,500 bopd production target by the end of 2017.

Morne Diablo Expansion project

The initial water injection on the project commenced in December 2015 and is continuing at an average rate of 200 bwpd, which is the maximum volume of water available at present from Range's producer wells.

To get access to additional water supply, Range has been negotiating with Petrotrin to use produced water from Petrotrin's existing operations, which will increase water injection by 3,000 bwpd. The agreement with Petrotrin has been reached and Range expects to execute final agreements during the remainder of 2016 (calendar year).

The Company will be constructing a new water pipeline to connect the gathering and injection stations at the Morne Diablo field to Petrotrin's water treatment facility. Range is pleased to advise that the environmental approvals for use of the additional water and construction of the new water pipeline have been granted by the regulatory body in Trinidad.

The average production over an 8-year period is expected to be approximately 200 bopd, and is forecast to be achieved when water injection is increased to approximately 3,000 bwpd.

Additional waterflooding areas

The Company has identified additional areas around the previously drilled development wells in the South Quarry and Morne Diablo fields, which could be suitable for waterflooding. The Company continues to evaluate these areas and study the field for waterflooding potential.

Exploration programme

Guayaguayare block

During the period, Range signed an amendment agreement to acquire the full remaining interest of Niko Resources Ltd. ("Niko") in the Guayaguayare block. Following completion of the agreement, Range holds an 80% interest in the Deep PSC and a 65% interest in the Shallow PSC (subject to final government approvals). Range is the Operator of the block.

Range also applied for the extension of the PSCs which expired during July 2015. Following ongoing discussions with the Ministry of Energy and Energy Industries ("MEEI"), Range is confident that the extension will be granted once the first shallow commitment well on the license (Canari North well) completed. The well location has been prepared with the well expected to spud during early 2017 once the drilling rig is available.

The Canari North well will be the first exploration well to be drilled by Range in Trinidad, and any success with the well is expected to de-risk the Moruga sub-basin and could result in material potential upside in the Guayaguayare block with multiple follow-on prospects and leads to be tested by further exploration drilling. The planned drilling programme is for a vertical well to be drilled to a target depth of 5,000 ft. The well is expected to spud once the rig is approved for drilling by the government.

St Mary's block

During the period, Range completed a comprehensive evaluation of all existing data on the block which was presented to Range's management team. The Company has also been working with the government of Trinidad and Tobago to obtain high resolution gravity surveys and additional seismic data for the block. Subsequent to the period end, this technical data was received. The Company now intends to conduct further studies utilizing the data provided. This completed work will guide future work programme to be undertaken.

Royalty rates reduced

During the period, Range signed an agreement with Petrotrin to reduce the overriding royalty rates ("ORRs") on the Company's producing Morne Diablo, Beach Marcelle and South Quarry fields in Trinidad. The revised ORRs apply when the received oil price is below US$50 per barrel. The changes took effect from 16 March 2016 and apply retrospectively to sales made from 1 February 2016 onwards.

The reduced ORRs are particularly encouraging for producers like Range and are a welcome incentive introduced by Petrotrin during the period of lower commodity prices.

Range is also encouraged by the comments in the 2016 Mid-Year Budget Review that the government of Trinidad and Tobago intends to review the level of Supplemental Petroleum Tax on crude oil prices moderately higher than US$50 per barrel. This review is anticipated to be completed during 2016.

Strategic partnership

During the period, Range continued its strategic partnership with LandOcean. LandOcean acts as the preferred oilfield services contractor to Range in Trinidad, as part of the Integrated Master Services Agreement entered into during 2014.

During the period, LandOcean added four brand new drilling rigs to its fleet in Trinidad with drilling capabilities of 13,000 ft. (4,000 m), 6,500 ft. (2,000 m), 4,900 ft. (1,500 m) and 3,200 ft. (1,000 m). Two of these rigs (4,000 m and 1,500 m) have been granted all necessary regulatory and government approvals and were successfully brought into operations. These rigs are currently being used for Range's drilling programme. Range continues to assist RRDSL in obtaining the necessary certification and approvals for the remaining two new drilling rigs.

During the period, LandOcean agreed to further extend its credit terms on drilling services to 24 months (previously 12 months). It is a rolling credit facility and payments will be due after 24 months from the date each invoice is agreed. The terms of the credit terms have not changed and in line with the previous agreement announced on 1 May 2015, and interest will be payable by Range at the rate of 10% per annum.

LandOcean also agreed to defer the outstanding payment of US$2.5 million for work in relation to Purchase Order 1 by a further 12 months. In addition, LandOcean provides Range with credit terms of 720 days for all work undertaken as part of Purchase Order 2 for US$50 million which covers work relating to waterflooding projects.

NON-CORE ASSETS

Georgia

During the period, the Company along with the other investors in Strait Oil & Gas ("SOG") have continued to pursue disposal of their shareholding in SOG (SOG holds interests in Block VIa in Georgia). SOG advised Range that the Production Sharing Agreement ("PSA") across Block VIa remains in good standing. Ongoing sale negotiations continue with a potential interested party.

Guatemala

During the period, the Company was unable to engage with the Operator of the project, Latin American Resources ("LAR") or obtain any information with regards to operations. The Company is seeking legal advice with regards to this matter and will update shareholders as appropriate.

Corporate

Equity financing completed

During the period, the Company secured a new cornerstone investor, Sibo. The total investment by Sibo was US$30 million at a subscription price of GBP0.008 per share - the first tranche of the proceeds had been received in the previous financial year, and the remaining US$22.1 million was received during the period. The Company's Directors and senior management also subscribed for ordinary shares totalling US$0.3 million at the same subscription price.

Acquisition strategy

In line with the growth strategy of the Company to create value for shareholders, and to provide Range with additional production and revenue, the Board continues to evaluate potential acquisitions of high quality assets at attractive valuations. During the period, the Company has witnessed an increase in the available attractive opportunities, and is hoping to conclude an acquisition in the coming months. The Board believes the Company is well positioned to take advantage of this opportune environment for acquirers.

Directorate and management changes

During the period, Mr Zhiwei Gu, who joined the Board in January 2015 as a Non-Executive Director, was appointed to the role of Non-Executive Chairman. Mr David Chen has stepped down from the role of Chairman of the Board but continues as a Non-Executive Director of the Company,

The Company also announced the appointment of three new Non-Executive Directors to the Board: Mr Yu Wang, a nominee of Sibo; Mr Lubing Liu and Dr Yi Zeng.

During the period, the Company also appointed Mr Lijun Xiu as Trinidad Deputy General. Mr Xiu has a long and distinguished geological career of over 30 years working for Jilin Oilfield Research Institute of Petroleum Exploration & Development (a division of China National Petroleum Corporation). Mr Xiu has extensive experience in oilfield exploration and development planning, drilling design, research on geological conditions for oil and gas accumulations and target selection, evaluation of oil reservoir properties and productivity construction, evaluation of well logging, and assessment of hydrocarbon reserves.

Unmarketable parcels sale

During the period, Range completed a share sale facility for holders of unmarketable parcels on ASX. As a result, the Company has reduced its ASX shareholders by 63% to 1,854 holders at 22 December 2015, which significantly reduced the ongoing administrative and other share registry costs to the Company associated with these very small holdings.

Legal proceedings

Lind

During the period, Range was pleased to announce that it reached a binding agreement with Lind Asset Management LLC ("Lind") to settle all outstanding claims and disputes between the parties. As previously announced, Lind initiated legal action in New South Wales Supreme Court seeking payment of approximately US$600,000 in respect of interest and legal costs. Lind also sought other damages for breach of contract. Range filed a defence against the claims and a cross-claim for damages. Under the terms of the settlement agreement, Range made a payment to Lind of US$325,000 and Lind retains the beneficial ownership of the 38 million collateral shares which were issued by Range in 2014 as part of the original funding agreement. Range is pleased to have reached a mutually acceptable settlement agreement with Lind which enables the Company to draw a line under this long-running dispute.

Mark Patterson

During the period, the Company was involved in an arbitration hearing with Mr Mark Patterson who had claimed approximately US$5.8million. In February 2016, the Company received the final award of the arbitration tribunal who found fully in favour of the Company (with just an immaterial award of costs being made to Mr Patterson).

Colombia

During the period, Range received notification from the Agencia Nacional de Hidrocarburos ("ANH") in Colombia advising that the licences over three exploration blocks PUT-5, VMM-7, and VSM-1 had been revoked. The licenses had been awarded to a consortium of Optima Oil Corporation ("Optima") and the Company in December 2012.

ANH alleges that various obligations and commitments contained within the exploration licences had not been fulfilled and that invalid letters of credit had been presented by Optima to support the minimum work obligations. Under the terms of the JOA it was agreed between the consortium that it was the sole responsibility of Optima to complete the minimum work obligations and to provide all necessary funding, including the provision of valid letters of credit in favour of ANH. Under the JOA, Range has an indemnity to recover from Optima any payment incurred by Range for any contractual obligations under the licences which were not paid by Optima.

Subsequent to the period end, Range received a demand notice from ANH addressed to the consortium seeking payment of the full amount of the outstanding obligations due to ANH totalling up to approximately US$53 million.

The consortium submitted a comprehensive response to ANH on 7 September 2016. This defence addressed the numerous areas in which Range and the consortium object to the demand which was received from ANH.

The Company continues to work with Optima and legal advisers to defend its position to the maximum extent possible and is considering what further action can be taken to challenge the actions taken by ANH.

Geeta Maharaj

Range has received an invoice from Geeta Maharaj, a Trinidad based attorney seeking payment of approximately US$1.9million. The invoice purports to relate to legal work undertaken during mid-2014 in the preparation of inter-company loan agreements. Range strongly refutes the amount of this purported invoice and intends to vigorously defend its position. Range has engaged Trinidad legal counsel to assist in this matter. Range considers that that the amount of the purported invoice is vastly excessive and is not payable.

Financial

The Group reports a loss after tax for the year of US$43.9million which compares to a loss for the prior year of US$30.3million. Despite reporting an increased loss for the year, Range believes that there continues to be positive overall momentum seen in the underlying business as we continue to reposition the group towards sustainable long-term profitability and positive operating cashflow.

Range has reported consecutive losses for over the last 10 years and the current Board are focused on, once and for all, turning around performance and creating value and returns for all shareholders through the delivery of the strategy outlined in the report. Range has endured significant losses and expenses in recent years as a result of legacy issues and non-core assets. Regrettably this has had an effect once again this year with further impairments seen for the investments in Georgia, Guatemala and International Petroleum. Range believes that these legacy issues, which have proved a drag on financial performance and management time over recent years, are now under control and the remaining balance sheet value for these previous projects and investments is now minimal.

During the year Range reduced the carrying value of the Trinidad assets on the balance sheet and this was principally due to the substantial, and sustained drop in oil prices which have been seen throughout the year. The majority of this impairment was reported during the half-year unaudited results announced in March and a small further impairment of US$3.4million has been adopted at this stage to recognise historic wells which are no longer in production, and have no likely future use. This valuation does not take into consideration the inherent value in the exploration acreage and resource potential with the Trinidad assets and the Company continues to firmly believe in the long-term prospects of these assets to deliver value to shareholders.

The following table summarises performance including on a normalised basis excluding impairments:

 
 Measure                   Unit       2016           2015           Change         % 
------------------------  ---------  -------------  -------------  -------------  ------- 
     Total production      barrels 
      (Trinidad)            of oil    193,868        205,209        (11,341)       -5.5% 
------------------------  ---------  -------------  -------------  -------------  ------- 
     Revenue               US$        7,062,226      13,152,954     (6,090,728)    -46.3% 
------------------------  ---------  -------------  -------------  -------------  ------- 
     Average received 
      oil price            US$/bbl    36.42          64.10          (27.68)        -43.2% 
------------------------  ---------  -------------  -------------  -------------  ------- 
     Reported NPAT 
      / (loss)             US$        (43,714,086)   (29,823,747)   (13,890,339)   -46.6% 
------------------------  ---------  -------------  -------------  -------------  ------- 
     Underlying NPAT 
      / (loss)             US$        (17,429,295)   (20,397,109)   2,967,814      14.6% 
------------------------  ---------  -------------  -------------  -------------  ------- 
     Underlying EBITDAX    US$        (5,658,343)    (7,461,927)    1,803,584      24.2% 
------------------------  ---------  -------------  -------------  -------------  ------- 
 

Underlying NPAT (Net Profit after Tax) and Underlying EBITDAX (Earnings before interest, tax, depreciation, amortisation and exploration expenditure written off) are not defined measures under Australian Accounting Standards or IFRS, and are not audited. These measures have been calculated by the Company who believe they provide meaningful analysis of underlying 'normalised' performance of the Company.

On an underlying basis, excluding impairments and other asset write-offs, the underlying NPAT for the year would be a loss of US$17.4million which is a 15% improvement on prior year (prior year comparable loss US$20.4million). On an EBITDAX basis, there is a similar positive trend evident with underlying EBITDAX 24% improved for the year with a loss of US$5.7million seen (2015: loss of US$7.5million).

Looking at key areas in the income statement:

-- The Group's revenue was US$7.1 million (2015: US$13.2 million), a decrease of approximately 46%. Group production was broadly stable for the year and the fall in revenue is due to reduced average oil price realised of US$36.42/bbl (2015: US$64.10/bbl);

-- This fall in revenues contributed to an increase in the gross loss which increased to US$7.8 million (2015: US$2.9 million). The other main factor in the gross loss was an increase for the year overall in operating costs to US$7.3million (2015: US$6.4million). This increase in operating cost is partially reflective of the first full year following the disposal of Range Resources Drilling Services Limited in 2015. Following completion of the sale, Range is now exposed to 3(rd) party rates for a majority of operating costs, as opposed to previous periods where it was just the incurred cost which was reflected (with no 3(rd) party margin). Additionally, certain activities during the year including swabbing and workovers were completed which did not result in increased revenue to compensate for the cost incurred. Range is focused on delivering improvements in this during the current financial year and the effective cost per barrel will also reduce as production grows. Production growth is the key to reducing operating costs on a per barrel basis, given the inherent fixed cost element within the operations in Trinidad;

-- General and administrative costs decreased materially by 66% overall during the year and totalled US$3.4 million (2015: US$9.9 million). This was achieved as a result of stringent cost cutting measures implemented with significant reduction seen in discretionary expenditure, lower staff costs and elimination of corporate management costs.

Cash management is an absolutely critical function within Range and total cash (including restricted cash) at year end was US$21.0mlllion (2015: US$10.5million). This increase was largely as a result of the new equity raising completed during the year with Sibo combined with the effect of lower G&A costs and credit terms in place.

Importantly, cash outflow from operating activities was significantly lower than the prior year at US$4.2million (2015: US$7.0million). Range benefits from the credit terms offered by our principal service provider (LandOcean Energy Services Co. Ltd.) which minimises cash outflow whilst production growth is achieved from implementation of the waterflood programme and selected development drilling.

As previously announced, LandOcean are providing Range with credit terms on the work under purchase order 2, of 720 days from issuance of each invoice. The total value of PO2 is US$50milion and as detailed in the operations review substantial progress has been seen during the year in implementation of the waterflood programme. This work is reflected within the growth seen in long-term interest-bearing liabilities on the balance sheet which total US$14.0million (2015: $nil) and accrued expenses of US$9.8million (2015: $nil); these principally reflect the payable balance to LandOcean which will be paid on a progressive basis in future years. Range anticipates that this balance will continue to increase during the 2017 financial year as the waterflood programme is further advanced and other planned development drilling is completed.

Despite the impairments during the year and the loss from operations, the balance sheet overall remains strong with total assets of US$158.0million (2015: US$161.9million) and net assets of US$72.2million (2015: US$95.0million). Total cash (including restricted cash) of US$21.0million, together with the remaining funding available from LandOcean for the Trinidad work programme positions Range in a strong position to meet its growth ambitions during 2017.

The Board recognise that there is a lot of work to be done to start generating long-term sustainable profitability. Range is confident that the right building blocks are now in place and will remain focused on improving financial performance in the years ahead.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

The following significant changes in the state of affairs of the Company occurred during the financial year:

   --      Equity financing of US$30 million completed with Sibo. 

Further details on the above matters can be found in the Review of Operations.

EVENTS SUBSEQUENT TO REPORTING DATE

Colombia

Subsequently to the period end, Range received a demand notice from ANH addressed to the consortium seeking payment of the full amount of the outstanding obligations due to ANH totalling up to approximately US$53 million.

The consortium submitted a comprehensive response to ANH on 7 September 2016. This defence addressed the numerous areas in which Range and the consortium object to the demand which was received from ANH.

The Company continues to work with Optima and legal advisers to defend its position to the maximum extent possible and is considering what further action can be taken to challenge the actions taken by ANH.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

The Company intends to continue with its work programme in Trinidad by implementing and bringing into production the secondary recovery projects (waterflood). In line with the growth strategy of the Company to create value for shareholders, and to provide Range with additional production and revenue, the Board continues to pursue potential acquisitions of new assets.

Please refer to the Review of Operations for full details on likely developments and future prospects of the Group

Corporate sustainability

Range is committed to operating in a socially responsible way with the highest standards of Business Ethics, Environmental Awareness and Health & Safety by:

   --      Ensuring the health and safety of its employees and contractors; 
   --      Preserving and protecting the environment; and 
   --      Cultivating a harmonious relationship with the local communities and key stakeholders. 

Health, Safety and Environment ("HSE")

Range is committed to "Operational Excellence", a core value that drives achievement of its sustainable growth and financial performance. The Company's vision of "Zero Harm" is that "no one gets hurt and nothing gets harmed" and as a result HSE performance is a critical element of our Operational Excellence goal. It is, therefore, the Policy of the Company, and far as is reasonably practicable, to:

-- Implement and maintain HSE management systems to prevent accidents, occupational injuries, illnesses and environmental incidence;

   --      Meet or exceed compliance with all applicable HSE laws and regulations; 

-- Ensure the provision and maintenance of a safe work environment, safe equipment and work procedures;

-- Foster a culture where all employees and contractors are held accountable for following all Company Policies and Procedures;

-- Provide appropriate training, re-training and supervision to maintain the competence levels of all employees to safely perform their duties;

   --      Promote the development of a positive Health and Safety culture; 
   --      Ensure timely investigation and reporting of all HSE related incidents; and 
   --      Conduct regular reviews of the Company's Policies and Procedures. 

Concern for the environment is of utmost importance to Range where our policy is to minimise our potential environmental impact by striving to:

   --      Protect the natural environment; 

-- Implement a cost effective waste and emissions management programme to prevent and control pollution;

   --      Manage, monitor and communicate our environmental performance; and 

-- Integrate environmental considerations into all our business processes and strive for continuous improvement.

Environmental regulation

The Group's operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory.

The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy use. The directors have assessed that there are no current reporting requirements, but may be required to do so in the future.

Ethics and principles

Range's employees share a responsibility for ensuring that they conduct business in an open, honest, and ethical manner and maintain the highest standards of integrity; and through corporate governance measure, audit and publicly report performance on Corporate Social Responsibility programmes.

Anti-bribery & corruption ("ABC")

Range has a zero tolerance approach with respect to its Anti-bribery and Corruption policy, procedures and implementation and complies with all applicable laws and regulations of the countries in which it operates. It is the responsibility of all Range employees to ensure that none of Range's businesses engage in practices which infringe legal or regulatory requirements or which fall below the highest standards of ethical business conduct.

Any Range employee engaging in business practices which infringe legal or regulatory requirements or fall below the highest standards of ethical business conduct may be subject to disciplinary action which may lead to dismissal and may face personal criminal or civil liability.

It is the responsibility of all Range employees to ensure that they report any infringement or suspected infringement of legal or regulatory requirements or the highest standards of ethical business conduct to the management of the Company.

Social responsibility and community involvement

Range strives to grow and strengthen the social and economic relationships within the communities we operate in, through the support and employment opportunities, as well as innovative programmes in local health, education, environment, and cultural activities. Our people and partners play a key role in creating value for our shareholders.

We recognise the need for our business to provide direct support to our local communities which rely on sponsorships and donations to survive. We will continue our involvement through various activities and will encourage the participation of our employees in the relevant events.

Supporting schools and awarding scholarships: educating and training future talent

Range aims to foster and promote the success of children in the communities and provide assistance to students from local schools. During the year, Range partnered with the Mayaro Past Pupils Association (MPPA) and provided a scholarship grant to a local primary school in an effort to promote and develop the young people living in the Mayaro / Guayaguayare area.

Range has also engaged with the Guayaguayare Roman Catholic Primary School located near the Company's Beach Marcelle field and provided a scholarship grant and stationery supplies. Range's employees held workshops at the school, educating students about prospects of working in the oil and gas industry. This programme is a concrete example of our commitment to educating, training and developing young local talent.

Trinidad and Tobago Society of Petroleum Engineers

During the year, Range participated in the Trinidad and Tobago Section of the Society of Petroleum Engineers. The event included a meet and greet opportunity, career development session, a young professional interactive workshop and a resume review session.

This was an excellent opportunity for engineering and geoscience students, recent graduates and young professionals to learn more about the energy industry and available career opportunities, as well as to meet with potential employers and key industry players. Range's participation in the event introduced the Company to the young talent and most importantly, allowed the opportunity to provide guidance and knowledge to those who are seeking to enter the industry. Range will continue its contribution to training and development of young local professionals in years to come.

Steel orchestra for youth

Range continues its support for the Morne Diablo Funk-a-delic steel orchestra in Trinidad. First formed in 2004, the steel orchestra band consists of around 40 local children between the ages of 6 and 18. Providing the children with an outlet for team building and community participation, the programme provides music lessons up to three times a week, where they learn how to play the steel pan (Trinidad and Tobago's national musical instrument) and to read music. The orchestra has performed at a number of ceremonies, including events hosted by the government of Trinidad and Tobago.

During the period, Range provided financial assistance to the Morne Diablo Funk-a-delics to build a pan shelter for the summer camp, as well as oil drums to be used as steel pans. Range is also looking to provide a cash donation towards constructing a pan theatre for orchestra's practice.

Principal risks and uncertainties

The achievement of the business strategy, production growth outlook and future financial performance is subject to various risks including the material business risks. Range continually monitors the effectiveness of the Company's risk management, internal compliance and control systems. The Board has identified the following principal business risks and adopted mitigating strategies as described below. It is not an exhaustive list of all risks that may affect the Company nor have they been listed in any particular order of importance.

 
 Risk                                        Description                    Mitigation 
------------------------------------------  ----------------------------  ------------------------------ 
 Exploration and development activities      There is a significant         The Company aims 
                                              element of technical           to continuously improve 
                                              risk in exploring              the quality of its 
                                              for and developing             operations through 
                                              oil and gas fields.            rigorous reviews. 
                                              Exploration activities         Technical work processes 
                                              are inherently uncertain       are used to ensure 
                                              in their outcome.              each opportunity 
                                              Failure to discover            has been thoroughly 
                                              and develop hydrocarbons       evaluated before 
                                              in commercially viable         investment decisions 
                                              quantities could               are made. 
                                              have a material adverse        Range is focused 
                                              effect on the Company's        on lowering its exploration 
                                              business.                      risk by applying 
                                                                             disciplined capital 
                                                                             allocation processes 
                                                                             and investing in 
                                                                             technologies such 
                                                                             as seismic. 
------------------------------------------  ----------------------------  ------------------------------ 
 Oil and gas reserves                        Estimations of recoverable     Range has established 
                                              oil and gas reserves           reserves committee 
                                              and resources contain          which undertakes 
                                              significant uncertainties      annual audits and 
                                              attributable to the            evaluations of the 
                                              reservoir geology,             Company's reserves 
                                              seismic data, well             and resources consistent 
                                              data, operating costs,         with the Society 
                                              commodity prices               of Petroleum Engineers' 
                                              etc.                           Petroleum Resource 
                                                                             Management System. 
------------------------------------------  ----------------------------  ------------------------------ 
 Safety and Health                           Exploration, development       Health and safety 
                                              and production of              are a very high priority 
                                              oil and gas involve            for Range. The Company 
                                              risks which may impact         is committed to maintaining 
                                              the health and safety          robust HSE policies, 
                                              of personnel, the              and cultivating an 
                                              community and the              organizational culture 
                                              environment.                   committed to superior 
                                              Failure to manage              HSE performance. 
                                              these risks could              The Company maintains 
                                              result in injury               strict reporting 
                                              or loss of life,               requirements in respect 
                                              damage or destruction          of any incidents, 
                                              of property, and               hazards or near misses. 
                                              damage to the environment.     Training, procedures 
                                              In addition, impacts           and competency are 
                                              may include reputational       performed throughout 
                                              damage and fines.              the organisation. 
                                                                             Appropriate insurances 
                                                                             are in place. 
------------------------------------------  ----------------------------  ------------------------------ 
 HR                                          Key personnel and              The Company identifies 
                                              positions are required         the key positions 
                                              in order to implement          and personnel and 
                                              the Company's strategy.        ensures that the 
                                              The risk occurs when           incentive package 
                                              the appropriate personnel      offered reflects 
                                              are difficult to               the key needs of 
                                              recruit and retain.            the business. 
------------------------------------------  ----------------------------  ------------------------------ 
 Access to funding                           Range's growth aspirations     The Board reviews 
                                              require the investment         and approves the 
                                              of significant capital         allocation of cash 
                                              to generate returns.           resources via the 
                                              The ability to explore         annual budget. The 
                                              for and develop oil            Board also considers 
                                              and gas reserves               longer term cash 
                                              is dependent on its            forecasts to ensure 
                                              ability to generate            sufficient funds 
                                              and otherwise access           to meet its goals. 
                                              capital to fund these          Range continues to 
                                              activities.                    assess long-term 
                                                                             funding needs and 
                                                                             manage capital efficiently. 
------------------------------------------  ----------------------------  ------------------------------ 
 Commodity price change                      The Company's revenues,        Range does not currently 
                                              profitability, cash            hedge its oil price 
                                              flows and rate of              exposure. 
                                              growth are significantly       Price hedging arrangements 
                                              impacted by prevailing         would be implemented 
                                              oil prices. Sustained          if deemed appropriate 
                                              periods of low oil             for financial planning 
                                              price may impact               and to mitigate commodity 
                                              the viability of               price risks. 
                                              growth projects. 
------------------------------------------  ----------------------------  ------------------------------ 
 Exchange rate fluctuations                  The Company is exposed         Range does not currently 
                                              to financial market            hedge its US Dollar 
                                              volatility and fluctuation     exposure. 
                                              in various foreign             Given the proportion 
                                              exchange rates.                of development capital 
                                                                             expenditure and operating 
                                                                             costs incurred in 
                                                                             currencies other 
                                                                             than the US Dollar, 
                                                                             the Company routinely 
                                                                             reviews potential 
                                                                             hedges and will execute 
                                                                             hedges if necessary 
                                                                             to mitigate foreign 
                                                                             exchange rate risk. 
------------------------------------------  ----------------------------  ------------------------------ 
 Political, economic, and regulatory risks   A substantial amount           Range continuously 
                                              of Range's properties          monitors the political, 
                                              and operations are             economic, and regulatory 
                                              located in Trinidad            environments in which 
                                              and Tobago and the             it operates and actively 
                                              Group's results of             cooperates with the 
                                              operations and financial       government of Trinidad 
                                              condition are affected         and Tobago on strategies 
                                              by policy, taxation            that might impact 
                                              and other political            the Company. 
                                              or economic developments 
                                              in or affecting Trinidad 
                                              and Tobago. Approvals 
                                              for Range's projects 
                                              may be delayed or 
                                              denied, or costs 
                                              associated with the 
                                              projects may impact 
                                              their economic viability. 
------------------------------------------  ----------------------------  ------------------------------ 
 Litigation risks                            The nature of Range's          Range and its legal 
                                              business means that            advisers actively 
                                              it is likely to be             monitor and manage 
                                              involved in litigation         potential and actual 
                                              or regulatory actions          claims, actions and 
                                              arising from a wide            disputes. 
                                              range of matters, 
                                              as well as investigations, 
                                              inquiries or disputes, 
                                              debt recoveries, 
                                              commercial and contractual 
                                              disputes, environmental 
                                              claims, occupational 
                                              health and safety 
                                              claims etc. 
                                              Any of these claims 
                                              or actions could 
                                              result in delays, 
                                              increase costs or 
                                              otherwise adversely 
                                              impact Range's operations, 
                                              and adversely impact 
                                              on financial performance 
                                              and future financial 
                                              prospects of the 
                                              Group. 
------------------------------------------  ----------------------------  ------------------------------ 
 

RESERVES & RESOURCES STATEMENT

For the year ended 30 June 2016

Reserves attributable to Trinidad assets (net to Range)

 
 MMBOE                   Developed   Undeveloped   Total 
----------------------  ----------  ------------  ------ 
 Proved reserves (1P)       0.5         16.8       17.3 
----------------------  ----------  ------------  ------ 
 Proved plus probable 
  reserves (2P)              -           7.1       24.4 
----------------------  ----------  ------------  ------ 
 Proved plus probable 
  plus possible (3P)         -          12.5       36.9 
----------------------  ----------  ------------  ------ 
 

Resources attributable to Trinidad assets (net to Range)

 
 MMBOE                    Total 
-----------------------  ------ 
 Contingent resources 
  (2C)                     3.1 
-----------------------  ------ 
 Prospective resources    14.8 
-----------------------  ------ 
 

Reserves and resources movement

 
 MMBOE           30 June      Revisions      30 June   %Change 
                   2015     and production     2016 
                                (FY16) 
--------------  --------  ----------------  --------  -------- 
 1P reserves      19.4          (2.1)         17.3      (11%) 
--------------  --------  ----------------  --------  -------- 
 2P reserves      22.0           2.4          24.4       11% 
--------------  --------  ----------------  --------  -------- 
 3P reserves      27.6           9.3          36.9       34% 
--------------  --------  ----------------  --------  -------- 
 2C resources      3.2          (0.1)          3.1      (3%) 
--------------  --------  ----------------  --------  -------- 
 Prospective 
  resources       91.3         (76.5)         14.8      (84%) 
--------------  --------  ----------------  --------  -------- 
 

Notes to the statement

1. During the financial period, Range engaged independent petroleum consultants, Rockflow Resources Limited, to prepare an updated reserve report for Range's Trinidad assets for the period ended 30 June 2016.

2. Range estimates and reports its petroleum reserves and resources in accordance with the definitions and guidelines of the SPE Petroleum Resources Management System (SPE-PRMS).

3. The reserve and resource estimates were calculated using probabilistic method.

4. All estimates of petroleum reserves reported by Range are reviewed by a qualified petroleum reserves and resources evaluator.

5. Range reviews and updates its oil and gas reserves position on an annual basis and reports the updated estimates as of 30 June each year. Separately, Range reviews and updates its oil and gas reserves position as frequently as required by the magnitude of the petroleum reserves and changes indicated by new data.

6. Range's Morne Diablo and South Quarry fields are operated under farm-out agreements, with rights to production net of Trinidad government royalties, overriding royalties, and production taxes.

7. Range's Beach Marcelle field is operated under the terms of an Incremental Production Service Contract, entitling Range to a defined portion of the future revenue stream. No oil and gas reserves are owned by Range.

8. The reserve figures (1P, 2P and 3P) include reserves associated with the Company's Morne Diablo, South Quarry and Beach Marcelle licences in Trinidad. The change in reserves from the previously reported figures is due to the adoption of a different calculation approach, using a wider range of in-place volumes, and recovery estimates from waterflooding for the Beach Marcelle licence.

9. The Central block and the deeper sands of the North East block of the Beach Marcelle waterflood project were considered uneconomic at current oil prices and will require further studies. These have been classified as contingent resources.

10. The reported prospective resources relate solely to the Guayaguayare licence.

11. The St Mary's exploration licence was not included in any of the estimates, as further technical studies had not been finalised at the time of the audit.

Qualified Petroleum Reserves and Resources evaluator

This report contains information on petroleum reserves which is based on and fairly represents information and supporting documentation reviewed by Dr Douglas Field. Dr Field is a petroleum and reservoir engineer who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves, and holds a PhD in Organic Chemistry. Dr Field is a member of the SPE (Society of Petroleum Engineers) and the PESGB (Petroleum Exploration Society of Great Britain). Dr Field holds a role of an Engineering Consultant with the Company.

Glossary - SPE Definitions

MMBOE stands for Million Barrels of Oil Equivalent.

Proved Reserves are those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations. Probable Reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. 1P refers to Proved Reserves, 2P refers to Proved plus Probable Reserves, 3P refers to Proved, plus Probable, plus Possible Reserves.

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by their economic status.

Prospective resources are defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

DIRECTORS' REPORT (continued)

INFORMATION ON DIRECTORS

 
 Mr Zhiwei Gu              Non-Executive Chairman 
                            (appointed 25 May 2016) 
                            Non-Executive Director 
 Qualifications            LL.B, LL.M., MSc 
 Experience                Mr Gu, is an experienced 
                            corporate lawyer, who 
                            has worked with numerous 
                            companies seeking listing 
                            approval on various 
                            stock markets including 
                            Chinese A share, NASDAQ, 
                            TSX and HKSE. He is 
                            currently a partner 
                            of Dentons, which is 
                            one of the largest global 
                            law firms. Mr Gu has 
                            participated in several 
                            Venture Capital and 
                            Private Equity investment 
                            cases by various funds, 
                            such as London Asia 
                            Fund, Warburg Pincus, 
                            Korea Development Bank, 
                            China Venture Investment 
                            Co, and China Cinda 
                            AMC. During his time 
                            with China National 
                            Gold Group Corp., Mr 
                            Gu was in charge of 
                            mineral resource M&A 
                            activities. Mr Gu holds 
                            a LL.B. from the Jilin 
                            University in China; 
                            a LL.M. from the Northeast 
                            University in China; 
                            and a Master of Applied 
                            Finance from the Macquarie 
                            University in Australia. 
                            Mr Gu is a qualified 
                            lawyer and securities 
                            practitioner in China. 
 Interest in shares and    2,083,333 ordinary shares 
  options                   7,500,000 unlisted options 
                            (GBP0.01, 30 March 2020) 
 Directorships held in     None 
  other listed entities 
  during the past three 
  years 
 
 Mr Yan Liu                Executive Director (resigned 
                            31 January 2016, re-appointed 
                            25 May 2016) 
                            Non-Executive Director 
                            (appointed 31 January 
                            2016, resigned 25 May 
                            2016) 
 Qualifications            B.Ec, MCom 
 Experience                Mr Liu, has over 19 
                            years of accounting 
                            and corporate advisory 
                            experience in China 
                            and Australia. Mr Liu 
                            was the Chief Financial 
                            Officer with AIM listed 
                            China Rerun Chemical 
                            Group Limited, a China-based 
                            lubricant oil company 
                            and a partner of Agile 
                            Partners, the financial 
                            advisory company based 
                            in China. Previously, 
                            Mr Liu was the Financial 
                            Controller at Legalwise 
                            Seminars Pty in Australia 
                            and he spent 8 years 
                            at Chinatex Corporation 
                            where he worked in project 
                            management positions. 
                            Mr Liu holds a Bachelor 
                            degree in Economics 
                            from Central University 
                            of Finance and Economics, 
                            China, and a Master 
                            degree in Commerce from 
                            the University of New 
                            South Wales, Australia. 
 Interest in shares and    6,333,333 ordinary shares 
  options                   10,000,000 unlisted 
                            options (GBP0.01, 30 
                            March 2020) 
 Directorships held in     None 
  other listed entities 
  during the past three 
  years 
 
 
   Mr David Yu Chen          Non-Executive Director 
                             (appointed 25 May 2016) 
                             Non-Executive Chairman 
                             (resigned 25 May 2016) 
 Qualifications            B.Ec. 
 Experience                Mr Chen has over 18 
                            years of corporate experience, 
                            having served as Chief 
                            Executive and Board 
                            member for companies 
                            listed on US and Hong 
                            Kong stock markets. 
                            He founded Huashan Capital 
                            in 2009 to invest in 
                            the resources sector. 
                            His investment experience 
                            includes the establishment 
                            of a US-listed special 
                            purpose acquisition 
                            fund and venture capital 
                            investments in China. 
                            Mr Chen is currently 
                            the Vice Chairman and 
                            President of Hengxing 
                            Gold, a Hong Kong Stock 
                            Exchange listed gold 
                            mining company. Mr Chen 
                            has served as a director 
                            of several technology 
                            companies in China, 
                            including Payeco, a 
                            leading mobile payment 
                            service provider; Cardvalue, 
                            a data driven online 
                            small business loan 
                            provider; and Freshfresh 
                            eCommerce, an online 
                            fresh produce retailer. 
 Interest in shares and    18,288,070 ordinary 
  options                   shares 
                            42,742,654 unlisted 
                            options (GBP0.01, 14 
                            July 2018) 
                            30,000,000 unlisted 
                            options (GBP0.01, 30 
                            March 2020) 
 Directorships held in     Hengxing Gold Holding 
  other listed entities     Company Limited (from 
  during the past three     March 2013) 
  years                     Zhonglu Company Limited 
                            (from May 2009 to November 
                            2014) 
 
 Ms Juan Wang              Non-Executive Director 
 Qualifications            BA, MBA 
 Experience                Ms Wang is currently 
                            a president of Energy 
                            Prospecting Technology 
                            USA, Inc. and LandOcean 
                            Energy Canada Ltd. where 
                            she is responsible for 
                            overall management work 
                            for the subsidiary companies 
                            of LandOcean Energy 
                            Services Co. Ltd. in 
                            Houston and Calgary. 
                            Prior to the current 
                            position, she was an 
                            investment manager at 
                            Anterra Energy Inc. 
                            responsible for Chinese 
                            investor liaisons. Prior 
                            to joining Anterra, 
                            Ms Wang was manager 
                            of corporate mergers 
                            and acquisitions at 
                            LandOcean Energy Services 
                            Co. Ltd. Ms Wang has 
                            a commercial banking 
                            background, having previously 
                            worked for Deutsche 
                            Bank and Bank of East 
                            Asia. 
 Interest in shares and    2,083,333 ordinary shares 
  options                   7,500,000 unlisted options 
                            (GBP0.01, 30 March 2020) 
 Directorships held in     Anterra Energy Inc. 
  other listed entities     (from December 2014 
  during the past three     to June 2016) 
  years 
 
 
   Mr Yu Wang                Non-Executive Director 
                             (appointed 30 September 
                             2015) 
 Qualifications            BSc; MSc 
 Experience                Mr Wang has over five 
                            years of corporate experience 
                            in finance and investments, 
                            focusing on energy and 
                            mineral sectors. He 
                            is currently a senior 
                            investment manager at 
                            Shanghai Anjin Investment 
                            Co., Ltd., responsible 
                            for project investments 
                            and management, both 
                            domestically and overseas. 
                            Previously, he worked 
                            as an investment manager 
                            at Weihai International 
                            Economic & Technical 
                            Cooperative Co., Ltd, 
                            specialising in project 
                            analysis and evaluation 
                            of energy and mineral 
                            projects in Africa, 
                            including oil and gas 
                            projects in the Republic 
                            of the Congo. Prior 
                            to that, Mr Wang was 
                            an investment analyst 
                            at Beijing Golden Valley 
                            Investment Management 
                            Co., Ltd. Mr Wang holds 
                            an MSc in Economics 
                            from the University 
                            of Edinburgh, and a 
                            BSc in Financial Economics 
                            from the University 
                            of Dundee. 
 Interest in shares and    Nil 
  options 
 Directorships held in     None 
  other listed entities 
  during the past three 
  years 
 
 Mr Lubing Liu             Non-Executive Director 
                            (appointed 16 June 2016) 
 Qualifications            BSc 
 Experience                Mr Lubing Liu, has over 
                            20 years' extensive 
                            global experience in 
                            petroleum exploration, 
                            development, production, 
                            joint venture operations 
                            and new ventures. He 
                            is currently an independent 
                            consultant to MEO Australia 
                            Limited (an ASX listed 
                            company). Prior to that, 
                            he held various subsurface 
                            leader roles, including 
                            Chief Reservoir Engineer 
                            with MEO Australia Limited, 
                            Vice President of Exploration 
                            and Petroleum Technology 
                            with Sinopec East Puffin 
                            Pty Ltd, and other international 
                            E&P and energy service 
                            companies including 
                            ConocoPhillips, CNOOC, 
                            Woodside, RPS and Senergy. 
                            Mr Liu has an extensive 
                            waterflooding experience 
                            having worked at the 
                            Penglai oilfield in 
                            China, the Chinguetti 
                            oilfield in Mauritania 
                            and Block 95 in Peru. 
                            Mr Liu holds a BSc in 
                            Petroleum Engineering 
                            from the Southwest Petroleum 
                            University, China. He 
                            is a Member of the Society 
                            of Petroleum Engineers. 
 Interest in shares and    Nil 
  options 
 Directorships held in     None 
  other listed entities 
  during the past three 
  years 
 
 
   Dr Yi Zeng                Non-Executive Director 
                             (appointed 16 June 2016) 
 Qualifications            BSc; MSc; PhD 
 Experience                Dr Yi Zeng, has over 
                            30 years of experience 
                            in the oil and gas and 
                            mining industries. Dr 
                            Zeng has held various 
                            technical and research 
                            positions with global 
                            companies, including 
                            BHP Billiton and Santos 
                            Asia Pacific. Dr Yi 
                            Zeng holds a PhD in 
                            Geophysics from the 
                            Victoria University 
                            of Wellington, New Zealand; 
                            MSc in Applied Geophysics; 
                            and BSc in Geophysical 
                            Exploration from the 
                            Chengdu University of 
                            Technology, China. 
 Interest in shares and    Nil 
  options 
 Directorships held in     None 
  other listed entities 
  during the past three 
  years 
 
 
 INFORMATION ON COMPANY 
  SECRETARIES 
 
 Mr Nick Beattie           Joint Company Secretary 
 Qualifications            BA (Hons), FCIBS, AMCT 
 Experience                Mr Nick Beattie has 
                            over twenty years of 
                            experience in finance 
                            working with a range 
                            of international banks. 
                            Most recently he was 
                            a Managing Director 
                            in the BNP Paribas Upstream 
                            Oil and Gas team in 
                            London where he was 
                            responsible for leading 
                            the bank relationships 
                            with UK focused independent 
                            E&P companies. Nick 
                            has approximately ten 
                            years' experience specifically 
                            financing the E&P sector 
                            and whilst at BNP Paribas, 
                            he structured and led 
                            numerous reserve based 
                            loans, development financings 
                            and other debt facilities. 
                            Prior to working with 
                            BNP Paribas, Nick worked 
                            as a Director within 
                            the Oil and Gas finance 
                            team at Fortis Bank 
                            covering Europe, Middle 
                            East and Africa and 
                            in a variety of roles 
                            with National Australia 
                            Bank Group. Nick is 
                            an Associate Member 
                            of the Association of 
                            Corporate Treasurers 
                            and a Fellow of the 
                            Chartered Institute 
                            of Bankers in Scotland. 
 
 Interest in shares and    2,916,667 ordinary shares 
  options                   25,000,000 unlisted 
                            options (GBP0.01, 30 
                            March 2020) 
 Directorships held in     None 
  other listed entities 
  during the past three 
  years 
 Ms Sara Kelly             Joint Company Secretary 
 Qualifications            B.Com, LLB 
 Experience                Ms Sara Kelly is an 
                            experienced Company 
                            Secretary and Corporate 
                            Lawyer with over 11 
                            years' experience. Sara 
                            has comprehensive knowledge 
                            of and experience in 
                            administering regulatory 
                            frameworks and processes 
                            in a listed company 
                            environment and practised 
                            as a corporate lawyer 
                            specialising in acquisitions, 
                            takeovers, capital raisings 
                            and listing of companies 
                            on ASX and AIM. Sara 
                            has acted as the company 
                            secretary of a number 
                            of ASX listed companies. 
 Interest in shares and    1 ordinary share 
  options 
 Directorships held in     None 
  other listed entities 
  during the past three 
  years 
 Directorships held in     None 
  other listed entities 
  during the past three 
  years 
 

REMUNERATION REPORT (AUDITED)

This report details the nature and amount of remuneration for each director of Range Resources Limited.

Remuneration Policy

The remuneration policy of Range Resources Limited has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives based on key performance areas affecting the Group's financial results. The Board of Range Resources Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the Group, as well as create alignment of goals between directors, executives and shareholders.

The Board's policy for determining the nature and amount of remuneration for Board members and senior executives of the Company is as follows:

The remuneration policy, setting the terms and conditions for the executive directors and other senior executives, was developed and approved by the Board.

Non-executive directors, executive directors and senior executives receive a base salary (which is based on factors such as length of service and experience), which is calculated on a total cost basis and includes any FBT charges related to employee benefits including motor vehicles, as well as employer contributions to superannuation funds.

Executive and Non-Executive directors can be employed by the Company on a consultancy basis, on Board approval, with remuneration and terms stipulated in individual consultancy agreements.

The Board exercises its discretion in determining remuneration performance of executives. Given the size and nature of the entity, the Board does not deem it to be realistic to measure performance against defined criteria. As such remuneration and performance have historically not been linked.

All remuneration paid to directors and executives is valued at the cost to the Company and expensed. Shares given to directors and executives are valued as the difference between the market price of those shares and the amount paid by the director or executive. Unlisted options are valued using the Black-Scholes methodology.

The Board policy is to remunerate non-executive directors at market rates for comparable companies taking into consideration time, commitment and level of responsibility. As approved by shareholders in 30 November 2011, the aggregate non-executive remuneration per annum is currently A$350,000 (US$260,555). The Remuneration and Nomination Committee determines payments to the non-executive directors and reviews their remuneration annually. Independent external advice is sought when required. Fees for non-executive directors are not linked to the performance of the Group. The directors are not required to hold any shares in the Company under the Constitution of the Company; however, to align Directors' interests with shareholder interests, the directors are encouraged to hold shares in the Company.

Options may be issued to directors and executives as part of remuneration. Options issued to directors have historically not been based on performance criteria. However, the options issued to the current directors on 27 March 2015 and the Key Management Personnel on 1 September 2015 principally vest upon satisfaction of set company performance criteria detailed in Note 31.

Under the Company's share trading policy, all employees and directors of the Company and its related companies are prohibited from trading in the Company's shares or other securities if they are in possession of inside information.

The Board believes that it has implemented suitable practices and procedures that are appropriate for an organisation of this size and maturity.

Remuneration Committee

A Remuneration Committee was established during the year ended 30 June 2015. One meeting was held during the current year to undertake annual review of performance remuneration for senior executives and directors.

Company Performance, Shareholder Wealth and Directors and Executives Remuneration

No relationship exists between shareholder wealth, director and executive remuneration and Company performance.

Use of remuneration consultants

During the year ended 30 June 2015, the Group contracted the service of a remuneration consultant, The Curzon partnership, to provide market comparison for executive and non-executive remuneration. The fee for this service was GBGBP480 (US$755). No such services were contracted in the year ended 30 June 2016.

Voting and comments made at the company's 2015 Annual General Meeting

Range Resources Limited received 99% of "yes" votes on its remuneration report for the 2015 financial year. Range notes this was a significant improvement on the previous year and reflects the conservative remuneration practices of the company.

Key Management Personnel

 
 Name              Position Held        Appointment / Resignation 
                                         Date 
 Mr Zhiwei         Non-Executive        appointed 25 May 
  Gu                Chairman             2016 
                   Non-Executive 
                    Director 
 Mr Yan Liu        Executive Director   resigned 31 January 
                                         2016 
                                        re-appointed 25 
                                         May 2016 
                   Non-Executive        appointed 31 January 
                    Director             2016 
                                         resigned 25 May 
                                         2016 
 Mr David Yu       Non-Executive        appointed 25 May 
  Chen              Director             2016 
                   Non-Executive        resigned 25 May 
                    Chairman             2016 
 Ms Juan Wang      Non-Executive 
                    Director 
 Mr Yu Wang        Non-Executive        appointed 30 September 
                    Director             2015 
 Mr Lubing         Non-Executive        appointed 16 June 
  Liu               Director             2016 
 Dr Yi Zeng        Non-Executive        appointed 16 June 
                    Director             2016 
 
 Officers 
 Mr Nick Beattie   CFO & Company        appointed 23 May 
                    Secretary            2014 (as CFO) and 
                                         30 March 2015 (as 
                                         Company Secretary) 
 Ms Sara Kelly     Company Secretary    resigned 21 Jul 
                                         2014, re-appointed 
                                         7 January 2015 
 
 

Details of Remuneration

The remuneration for the Key Management Personnel of the Group during the year was as follows:

 
                      Short-term benefits          Post-employment    Share-based 
                                                       benefits         payments 
-------------  ---------------------------------  -----------------  ------------  -------- 
 2016            Cash     One-off    Termination   Super-annuation/     Options      Total 
                 salary    payment     benefits        pensions 
                  and 
                  fees 
-------------  --------  ---------  ------------  -----------------  ------------  -------- 
                  US$       US$          US$             US$              US$         US$ 
 Directors 
  & officers 
 Mr Gu           53,065          -             -                  -        38,317    91,382 
 Mr Y Liu       113,605          -             -              3,052        50,120   166,777 
 Mr Chen        141,437          -             -                  -        67,058   208,495 
 Ms Wang         30,000          -             -                  -        16,764    46,764 
 Mr Wang              -          -             -                  -             -         - 
 Mr L Liu        10,375          -             -                  -             -    10,375 
 Dr Zeng          1,042          -             -                  -             -     1,042 
 Mr Beattie     211,943     15,700             -             21,194        62,165   311,002 
                561,467     15,700             -             24,246       234,424   835,837 
               --------  ---------  ------------  -----------------  ------------  -------- 
 
 
                           Short-term benefits          Post-employment    Share-based 
                                                            benefits         payments 
------------------  ---------------------------------  -----------------  ------------  ---------- 
 2015                  Cash       Cash    Termination   Super-annuation/     Options       Total 
                       salary     bonus     benefits        pensions 
                      and fees 
------------------  ----------  -------  ------------  -----------------  ------------  ---------- 
                        US$       US$         US$             US$              US$          US$ 
 Directors 
  & officers 
 Sir Sam 
  Jonah                 37,609        -             -                  -             -      37,609 
 Mr Scott 
  Russell              103,137        -       150,253                  -             -     253,390 
 Mr Beattie            228,342        -             -             28,152             -     256,494 
 Mr Edwards-Jones       37,609        -             -                  -             -      37,609 
 Mr Macliver             5,584        -             -                  -             -       5,584 
 Mr Lyon 
  (i)                   50,093        -             -                  -             -      50,093 
 Dr Bukovics            37,889        -             -                  -             -      37,889 
 Mr Riekie 
  (ii)                  45,836        -             -                  -             -      45,836 
 Mr Olson               21,265        -             -                  -             -      21,265 
 Mr Chen                88,710        -             -                  -        34,186     122,896 
 Mr Liu                 86,418        -             -                  -        34,186     120,604 
 Ms Wang                19,152        -             -                  -         8,546      27,698 
 Mr Gu                  16,694        -             -                  -         8,546      25,240 
                    ----------  -------  ------------  -----------------  ------------  ---------- 
                       778,338        -       150,253             28,152        85,464   1,042,207 
                    ----------  -------  ------------  -----------------  ------------  ---------- 
 

(i) Fees paid to Mr Lyon comprised US$37,299 received in his capacity as a non-executive director and US$12,794 received for additional consulting work.

(ii) Fees paid to Mr Rieke comprised US$31,416 received in his capacity as a non-executive director and US$14,420 received for additional consulting work.

Equity instrument disclosures relating to Key Management Personnel

Year ended 30 June 2016

i. Share-based payments

The following options were issued to key management personnel:

 
 Name              Number of options   Grant date 
 Mr Nick Beattie   25,000,000          1 September 
                                        2015 
 Mr Yan Liu        20,000,000          25 May 2016 
                                        (i) 
 Mr Kerry Gu       22,500,000          25 May 2016 
                                        (i) 
 
   (i)         Options to be granted on gaining shareholder approval 

The options expire on 30 March 2020 with an exercise price of GBP0.01 per share.

The vesting conditions of these options are as follows:

   a)   25% became exercisable on 31 March 2016 

b) 25% will become exercisable upon the Company reaching production of 1,500 barrels of oil per day for a continuous 15 day period in Trinidad

c) 25% will become exercisable upon the Company reaching production of 2,500 barrels of oil per day for a continuous 15 day period in Trinidad

d) 25% will become exercisable upon the Company reaching production of 4,000 barrels of oil per day for a continuous 15 day period in Trinidad

Mr Nick Beattie options:

The value per option at the grant date was 0.56 cents, determined using the Black Scholes option price model using the following key inputs:

Volatility: 100% Probability of meeting vesting conditions: 100%

   Risk free rate: 1.92%                                           Exercise price: GBP0.01 
   USD/GBP exchange rate: 0.6509                        Share price on grant date GBP0.0057 

Mr Kerry Gu and Mr Yan Liu options:

The value per option at the grant date was 0.30 cents, determined using the Black Scholes option price model using the following key inputs:

Volatility: 100% Probability of meeting vesting conditions: 100%

   Risk free rate: 1.92%                                           Exercise price: GBP0.01 
   USD/GBP exchange rate: 0.7468                        Share price on grant date GBP0.0037 

Year ended 30 June 2015

On 27 March 2015, the following options were issued to key management personnel:

 
 Name              Number of options 
 Mr Yan Liu        30,000,000 
 Mr David Chen     30,000,000 
 Mr Zhiwei Gu      7,500,000 
 Ms Juan Wang      7,500,000 
 
 
 

All options expire on 30 March 2020 with an exercise price of GBP0.01 per share.

The vesting conditions of these options are as follows:

   a)   25% will become exercisable on the date that is one year from the issue date 

b) 25% will become exercisable upon the Company reaching production of 1,500 barrels of oil per day for a continuous 15 day period in Trinidad

c) 25% will become exercisable upon the Company reaching production of 2,500 barrels of oil per day for a continuous 15 day period in Trinidad

d) 25% will become exercisable upon the Company reaching production of 4,000 barrels of oil per day for a continuous 15 day period in Trinidad

The value per option at the grant date was 0.51 cents, determined using the Black Scholes option price model using the following key inputs:

   Volatility: 100%                                                  Grant date: 27 March 2015 
   Risk free rate: 1.92%                                           Exercise price: GBP0.01 
   USD/GBP exchange rate: 0.7752                        Share price on grant date GBP0.054 

ii. Shares provided on exercise of remuneration options

No options issued in prior years affects remuneration in the current or future financial years.

   iii.      Fully paid share holdings 

The numbers of shares in the company held during the financial year or at time of resignation by Key Management Personnel of the Company, including their personally related parties, are set out below.

 
 2016           Balance         Granted          Other       Balance       Balance 
                 at the      as compensation     changes      at the         held 
                  start                                       end of      indirectly 
                 of the                                      the year 
                  year 
 
 Mr Gu             -               -           2,083,333    2,083,333         - 
 Mr Chen       10,288,070          -           8,000,000    18,288,070        - 
 Mr Y Liu          -               -           6,333,333    6,333,333         - 
 Ms Wang           -               -           2,083,333    2,083,333         - 
 Mr Wang           -               -               -            -             - 
 Mr L Liu          -               -               -            -             - 
 Dr Zeng           -               -               -            -             - 
 Mr Beattie        -               -           2,916,667    2,916,667         - 
              -----------  -----------------  -----------  -----------  ------------ 
 Total         10,288,070          -           21,416,666   31,704,736        - 
              -----------  -----------------  -----------  -----------  ------------ 
 
   iv.      Options held by key management personnel 

The numbers of options in the company held during the financial year or at time of resignation by Key Management Personnel of the Company, including their personally related parties, are set out below:

 
 
 2016            Balance         Granted           Other         Balance          Vested 
                  at the      as compensation      changes        at the      and exercisable 
                  start                                           end of 
                  of the                                         the year 
                   year 
 Mr Gu 
  (ii)          7,500,000       22,500,000           -         30,000,000       7,500,000 
 Mr Y Liu 
  (i)(ii)      30,000,000       20,000,000      (20,000,000)   30,000,000       7,500,000 
 Mr Chen       72,742,654           -                -         72,742,654       50,242,654 
 Ms Wang        7,500,000           -                -          7,500,000       1,875,000 
 Mr Wang            -               -                -              -               - 
 Mr L Liu           -               -                -              -               - 
 Dr Zeng            -               -                -              -               - 
 Mr Beattie         -           25,000,000           -         25,000,000       6,250,000 
 Mr L Liu           -               -                -              -               - 
 Mr Zeng            -               -                -              -               - 
              ------------  -----------------  -------------  ------------  ----------------- 
 Total         117,742,654      67,500,000      (20,000,000)   165,242,654      73,367,654 
              ------------  -----------------  -------------  ------------  ----------------- 
 

(i) During the year 20,000,000 options were cancelled following Yan Liu's change in position from executive to non-executive director. An amount of US$22,791 was reversed in the current year.

   (ii)         Options to be granted on gaining shareholder approval 

Loans to Key Management Personnel

There were no loans made to directors of Range Resources Limited and other Key Management Personnel of the Group, including their personally related parties during the 2015 or 2016 financial years.

Transactions with Key Management Personnel

The following transactions occurred during the year with Key Management Personnel or their related parties:

 
 Balances at year end due to Key and Former 
  Key Management Personnel 
 
                                                   US$ 
 David Chen and related entities                12,267 
 Lubing Liu and related entities                10,375 
 Dr Zeng                                         1,042 
 Kiki Wang and related entities                  2,500 
 Kerry Gu and related entities                  20,833 
 Sir Sam Jonah (i)                             152,943 
 Soncer Limited (i)                              1,519 
 
   (i)     These were related parties throughout the prior financial year until 28 November 2014. 

Employment contracts of Directors and other Key Management Personnel

On appointment, Executive Directors and Other Key Management Personnel enter into an employment contract with the Company (or another company within the Group). This contract sets out their duties, remuneration and other terms of employment. These contracts may be terminated by either the Company or the employee as detailed below.

All non-executive directors are eligible to receive consulting fees for services provided to the Company over and above the services expected from a non-executive director.

Mr Zhiwei Gu as Non-Executive Chairman (appointed as Non-Executive Chairman on 25 May 2016)

Non-Executive Chairman contract

Contract start date -25 May 2016

Total compensation including executive services - US$250,000 per annum

Superannuation - no superannuation entitlement

Notice period - 3 months

Termination benefits - payment in lieu of notice at Company option for termination without cause

Non-executive Director contract

Contract start date -19 January 2015

Base payment - US$30,000 per annum

Superannuation - no superannuation entitlement

Termination benefits - none

Mr Yan Liu as Chief Executive Officer and Executive Director (resigned as CEO and Executive Director on 31 January 2016, re-appointed as CEO and Executive Director on 25 May 2016)

Contract start date -25 May 2016

Base payment - AU$215,000 per annum

Superannuation - 10% of base salary

Notice period - 3 months

Termination benefits - payment in lieu of notice at Company option for termination without cause

Non-Executive Director contract

Contract start date -31 January 2016

Base payment - US$30,000 per annum

Superannuation - no superannuation entitlement

Notice period - none

Termination benefits - none

Prior Executive Director contract

Contract start date -11 December 2014

Base payment - US$155,000 per annum

Superannuation - no superannuation entitlement

Notice period - 3 months

Termination benefits - payment in lieu of notice at Company option for termination without cause

Mr David Chen as Non-Executive Director (resigned as Non-Executive chairman on 25 May 2016)

Non-Executive Director contract

Contract start date -25 May 2016

Base payment - US$30,000 per annum

Superannuation - no superannuation entitlement

Notice period - none

Termination benefits - none

Non- Executive Chairman contract

Contract start date -11 December 2014

Total compensation including executive services - US$155,000 per annum

Superannuation - no superannuation entitlement

Notice period - 3 months

Termination benefits - payment in lieu of notice at Company option for termination without cause

Ms Juan Wang as Non-Executive Director

Contract start date -19 January 2015

Base payment - US$30,000 per annum

Superannuation - no superannuation entitlement

Termination benefits - none

Mr Yu Wang as Non-Executive Director (appointed 30 September 2015)

No remuneration received

Mr Lubing Liu as Non-Executive Director (appointed 16 June 2016)

Contract start date -16 June 2016

Base payment - US$25,000 per annum

Superannuation - no superannuation entitlement

Termination benefits - none

Consulting services - Mr Liu may provide additional consulting services over and above services rendered to the Company as a Non-Executive Director from time to time as required at a rate of between US$600 and $1,200 per day.

Dr Yi Zeng as Non-Executive Director (appointed 16 June 2016)

Contract start date -16 June 2016

Base payment - US$25,000 per annum

Superannuation - no superannuation entitlement

Termination benefits - none

Mr Nick Beattie as Chief Financial Officer

Contract start date - 23 May 2014

Base payment - GBGBP135,000 per annum, reviewed annually

Pension - 10% of base

Bonus - Eligible to receive bonus at the discretion of the board

Notice period - 3-6 months

Termination benefits - 6 months' salary

End of Audited Remuneration Report

MEETINGS OF DIRECTORS

During the financial year 5 meetings of the board of directors were held. Attendances by each director during the year were as follows:

 
                             Board meetings 
 Director                  Eligible    Attended 
                           to attend 
 
 Zhiwei Gu                    5           5 
 Yan Liu                      5           5 
 David Chen                   5           5 
 Juan Wang                    5           4 
 Yu Wang (appointed 30 
  September 2015)             4           4 
 Lubing Liu (appointed        -           - 
  16 June 2016) 
 Yi Zeng (appointed 16        -           - 
  June 2016) 
 

INDEMNIFYING OFFICERS OR AUDITOR

In accordance with the constitution, except where prohibited by the Corporations Act 2001, every director, principal executive officer and secretary of the Company shall be indemnified out of the property of the Company against any liability incurred by him/her in his/her capacity as director, principal executive officer or secretary of the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in defending any proceedings whether civil or criminal.

During the financial year, the Company has paid premiums to insure the Directors and Officers against certain liabilities arising out of the conduct of acting as an officer of the Company. Under the terms and conditions of the insurance contract, the nature of liabilities insured against and the premium paid cannot be disclosed.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the Company or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.

The Company was not a party to any such proceedings during the year.

OPTIONS

As at 30 June 2016, the unissued ordinary shares of Range Resources Limited under option are as follows:

 
 Date of expiry       Exercise price    Number under 
                                         option 
 11 July 2016         GBP0.037          5,000,000 
 25 July 2016         GBP0.021          476,190 
 29 July 2016         GBP0.021          952,381 
 31 August 2016       GBP0.021          6,714,284 
 31 August 2016       GBP0.020          9,000,000 
 30 September 2016    GBP0.019          3,947,368 
 30 September 2016    GBP0.018          8,666,670 
 31 October 2016      GBP0.018          694,445 
 31 October 2016      GBP0.017          2,205,885 
 31 October 2016      GBP0.016          1,250,000 
 31 October 2016      GBP0.015          17,333,336 
 30 November 2016     GBP0.015          3,000,001 
 30 November 2016     GBP0.013          5,153,846 
 11 December 2016     A$0.0321          2,000,000 
 31 December 2016     GBP0.012          2,000,000 
 31 December 2016     GBP0.011          5,000,000 
 31 January 2017      GBP0.075          5,180,000 
 31 January 2017      GBP0.011          23,636,364 
 9 September 2017     GBP0.03           7,500,000 
 15 October 2017      GBP0.01203        31,000,000 
 31 January 2018      A$0.05            1,000,000 
 14 July 2018         GBP0.01           161,472,247 
 14 July 2018         GBP0.02           118,729,593 
 31 August 2018       GBP0.01           14,000,000 
 3 September 2019     GBP0.01           194,585,862 
 3 September 2019     GBP0.02           172,557,274 
 30 March 2020        GBP0.01           80,000,000 
 Total                                  883,055,746 
 

During the year ended 30 June 2016 no ordinary shares of Range Resources Limited were issued on the exercise of options (2015: 49,051,468).

The holders of these options do not have any rights under the options to participate in any share issues of the Company.

NON-AUDIT SERVICES

The total value of non-audit services provided by a related practice of BDO Audit (WA) Pty Ltd in respect to the Company's tax compliance is US$34,149 (2015: US$72,570).

The board of directors has considered the position and is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of non-audit services by the auditor did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

-- all non-audit services have been reviewed by the Board to ensure they do not impact the impartiality and objectivity of the auditor; and

-- none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

AUDITOR'S INDEPENCE DECLARATION

The auditor's independence declaration, as required under Section 307C of the Corporations Act 2001, for the year ended 30 June 2016 has been received and can be found on the following page.

Signed in accordance with a resolution of the Board of Directors.

Zhiwei Gu

Chairman

30 September 2016

 
                   CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 
                                        FOR THE YEARED 30 JUNE 2016 
                                      Note                                              Consolidated 
                                                                                     2016           2015 
                                                                                      US$            US$ 
 
 Revenue from continuing 
  operations                                                             3          7,062,226     13,152,954 
 
 Operating expenses                                                               (7,266,830)    (6,440,734) 
 Royalties                                                                        (2,104,894)    (4,654,241) 
 Depreciation, depletion 
  and amortisation                                                                (5,490,676)    (4,917,053) 
                                                                                -------------  ------------- 
 Cost of sales                                                          4a       (14,862,400)   (16,012,028) 
                                                                                -------------  ------------- 
 
 Gross loss                                                                       (7,800,174)    (2,859,074) 
 Other income and expenses 
  from continuing operations 
 Other income                                                            3             51,193        428,588 
 Finance costs                                                          4b          (934,321)    (4,347,575) 
 General and administration 
  expenses                                                              4b        (3,400,038)    (9,948,494) 
 Assets written-off                                                     4c        (1,000,761)      (692,929) 
 Exploration expenditure 
  and land fees                                                         4d        (4,261,435)    (2,202,748) 
 Impairment of non-current 
  assets                                                               16,19     (20,564,829)              - 
 Loss on disposal of subsidiary                                         4e                  -    (1,491,857) 
 Loss before income tax expense 
  from continuing operations                                                     (37,910,365)   (21,114,089) 
 
   Income tax expense                                                     6       (1,084,520)    (1,467,806) 
                                                                                -------------  ------------- 
 Loss after income tax from 
  continuing operations                                                          (38,994,885)   (22,581,895) 
 Loss from discontinued operations, 
 net of tax                                                             5a        (4,880,000)    (7,697,159) 
                                                                                -------------  ------------- 
 Loss for the year attributable 
  to equity holders of Range 
  Resources Limited                                                              (43,874,885)   (30,279,054) 
 
   Other comprehensive income 
 Items that may be reclassified 
  to profit or loss 
 Exchange differences on 
 translation of foreign operations                                      26c           160,799        455,307 
                                                                                -------------  ------------- 
 Other comprehensive income 
  for the year, net of tax                                                            160,799        455,307 
                                                                                -------------  ------------- 
 
 Total comprehensive loss 
  attributable to equity holders 
  of Range Resources Limited                                                     (43,714,086)   (29,823,747) 
                                                                                =============  ============= 
 
 
   Loss per share from continuing operations attributable to the ordinary equity 
   holders of the Company: 
 Basic loss per share (cents 
  per share)                                                            8a             (0.54)            (0.44) 
 Diluted loss per share (cents                                          8b 
  per share)                                                                              n/a               n/a 
 
 
                                  Loss per share attributable to the ordinary equity holders of the Company: 
 Basic loss per share (cents 
  per share)                                                            8a             (0.60)         (0.59) 
 Diluted loss per share (cents                                          8b 
  per share)                                                                              n/a            n/a 
 
 
 
 

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

 
             CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
                           AS AT 30 JUNE 2016 
                                  Note                 Consolidated 
                                                  2016            2015 
                                                   US$             US$ 
 Assets 
 Current assets 
 Cash and cash equivalents         9        13,001,252      10,530,104 
 Restricted deposits               10        8,000,000               - 
 Trade and other receivables       11        4,620,266       5,148,978 
 Other current assets              12          178,158         783,385 
                                        --------------  -------------- 
                                            25,799,676      16,462,467 
 Assets classified as 
  held for sale                    13        1,250,000       6,000,000 
                                        -------------- 
 Total current assets                       27,049,676      22,462,467 
                                        -------------- 
 
 Non-current assets 
 Deferred tax asset                6         3,959,803         286,693 
 Available for sale financial 
  assets                           14           45,238         446,000 
 Goodwill                          16       28,985,014      46,198,974 
 Property, plant and 
  equipment                        17        2,329,228       1,502,442 
 Exploration & evaluation 
  expenditure                      18          645,801         668,951 
 Producing assets                  19       95,077,882      90,350,492 
 
   Total non-current assets                131,042,966     139,453,552 
                                        --------------  -------------- 
 
 Total assets                              158,092,642     161,916,019 
                                        --------------  -------------- 
 
 Current liabilities 
 Trade and other payables          20       12,244,873      13,654,195 
 Current tax liabilities                       286,723         296,894 
 Borrowings                       21a                -       7,518,077 
 Option liability                 21b          835,714         808,083 
 Provisions                        22          740,268         734,858 
                                        --------------  -------------- 
 Total current liabilities                  14,107,578      23,012,107 
                                        --------------  -------------- 
 
 Non-current liabilities 
 Trade and other payables          20       23,764,005               - 
 Deferred tax liabilities          23       47,561,612      43,359,199 
 Employee service benefits         24          422,315         521,257 
 Total non-current liabilities              71,747,932      43,880,456 
                                        --------------  -------------- 
 
   Total liabilities                        85,855,510      66,892,563 
                                        --------------  -------------- 
 
 Net assets                                 72,237,132      95,023,456 
                                        ==============  ============== 
 
 Equity 
 Contributed equity                25      383,882,192     363,205,277 
 Reserves                          26       24,227,125      29,748,880 
 Accumulated losses                      (335,872,185)   (297,930,701) 
                                        --------------  -------------- 
 
   Total equity                             72,237,132      95,023,456 
                                        ==============  ============== 
 
 

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARED 30 JUNE 2016

 
 Consolidated                                                  Foreign 
                                                               currency     Share-based     Option 
                               Contributed    Accumulated     translation     payment       premium       Total 
                        Note      equity         losses         reserve       reserve       reserve       equity 
                                   US$            US$            US$            US$          US$           US$ 
                              ------------  --------------  -------------  ------------  -----------  ------------- 
 Balance at 1 
  July 2014                    352,599,569   (271,166,312)      3,004,632    14,226,861   10,630,513    109,295,263 
 Other comprehensive 
  income                                 -               -        455,307             -            -        455,307 
 Loss attributable 
  to members of 
  the company                            -    (30,279,054)              -             -            -   (30,279,054) 
                              ------------  --------------  -------------  ------------  -----------  ------------- 
 Total comprehensive 
  loss for the 
  year                                   -    (30,279,054)        455,307             -            -   (29,823,747) 
 Transactions 
  with owners in 
  their capacity 
  as owners: 
 Issue of share 
  capital                25     11,044,172               -              -             -            -     11,044,172 
 Exercise of options     26        923,880               -              -             -    1,426,850      2,350,730 
 Cancellation 
  of partly paid 
  shares                 26    (1,362,344)       1,362,344              -             -            -              - 
 Expired options 
  - Reclassified                         -       2,152,321              -   (2,152,321)            -              - 
 Cost of share-based 
  payments                               -               -              -     2,157,038            -      2,157,038 
                              ------------  --------------  -------------  ------------  -----------  ------------- 
 Balance at 30 
  June 2015                    363,205,277   (297,930,701)      3,459,939    14,231,578   12,057,363     95,023,456 
                              ============  ==============  =============  ============  ===========  ============= 
 
 
                                 US$            US$           US$          US$          US$           US$ 
                            ------------  --------------  ----------  ------------  -----------  ------------- 
 Balance at 1 
  July 2015                  363,205,277   (297,930,701)   3,459,939    14,231,578   12,057,363     95,023,456 
 Other comprehensive 
  income                               -                     160,799             -            -        160,799 
 Loss attributable 
  to members of 
  the company                          -    (43,874,885)           -             -            -   (43,874,885) 
                            ------------  --------------  ----------  ------------  -----------  ------------- 
 Total comprehensive 
  loss for the 
  year                                 -    (43,874,885)     160,799             -            -   (43,714,086) 
 Transactions 
  with owners in 
  their capacity 
  as owners: 
 Issue of share 
  capital               25    20,676,915               -           -             -            -     20,676,915 
 Expired options 
  - Reclassified                       -       5,933,401           -   (5,933,401)            -              - 
 Cost of share-based 
  payments                             -                                   250,847            -        250,847 
 Balance at 30 
  June 2016                  383,882,192   (335,872,185)   3,620,738     8,549,024   12,057,363     72,237,132 
                            ============  ==============  ==========  ============  ===========  ============= 
 

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

 
                    CONSOLIDATED STATEMENT OF CASH FLOWS 
                               FOR YEARED 
                                30 JUNE 2016 
                                         Note          Consolidated 
                                                    2016           2015 
                                                    US$            US$ 
 Cash flows from operating 
  activities 
 Receipts from customers                           7,171,488     13,313,284 
 Payments to suppliers and 
  employees                                     (10,790,650)   (19,472,258) 
 Payments for exploration 
  and evaluation expenditure                               -      (392,219) 
 Income taxes paid                                  (32,940)      (208,536) 
 Interest received                                    45,210          3,390 
 Interest & other finance 
  costs                                            (449,143)      (198,925) 
 Payments relating to held 
  for sale asset                                   (130,000)              - 
 
 Net cash outflow from operating 
  activities                              30     (4,186,035)    (6,955,264) 
                                               -------------  ------------- 
 
 Cash flows from investing 
  activities 
 Payment for property, plant 
  & equipment                                      (140,474)    (1,576,298) 
 Proceeds from sale of available 
  for sale financial assets                                -        450,643 
 Payment for producing assets                      (260,888)    (3,992,670) 
 Payments for exploration 
  and evaluation assets                                    -      (145,346) 
 Proceeds from disposal of 
  property, plant and equipment                       11,799              - 
 Proceeds from sale of assets 
  held-for-sale                                            -      5,202,379 
 Transfer to restricted deposit                  (8,000,000)              - 
 Receipts from loan repayments/(Loans 
  to external parties)                                     -        500,000 
 
 Net cash (outflow)/inflow 
  from investing activities                      (8,389,563)        438,708 
                                               -------------  ------------- 
 
 Cash flows from financing 
  activities 
 Proceeds from issue of equity 
  (net of capital raising costs)                  22,338,344      8,890,800 
 Proceeds from borrowings                                  -      5,250,000 
 Repayment of borrowings                         (7,225,997)              - 
 
 Net cash inflow from financing 
  activities                                      15,112,347     14,140,800 
                                               -------------  ------------- 
 
 Net increase in cash and 
  cash equivalents                                 2,536,749      7,624,244 
 Net foreign exchange differences                   (65,601)       (71,550) 
 Cash and cash equivalents 
  at beginning of financial 
  year                                            10,530,104      2,977,410 
 Cash and cash equivalents 
  at end of financial year                9       13,001,252     10,530,104 
                                               =============  ============= 
 
 
 
 

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Note 1: Significant accounting policies

These financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Range Resources Limited is a for-profit entity for the purpose of preparing the financial statements.

The financial statements cover the Group consisting of Range Resources Limited and its controlled entities. Financial information for Range Resources Limited as an individual entity is disclosed in Note 33. Range Resources Limited is a listed public company, incorporated and domiciled in Australia.

The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial statements. The accounting policies have been consistently applied, unless otherwise stated.

Basis of preparation

Reporting basis and conventions

The financial statements have been prepared on an accruals basis and are based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Compliance with IFRS

The financial statements of Range Resources Limited also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The financial statements were approved by the Board of Directors on 29 September 2015.

Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "Functional Currency"). The consolidated financial statements are presented in United States Dollars (USD), which is Range Resources Limited's functional and presentation currency.

Going concern

The Directors have prepared the financial statements on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.

As disclosed in the financial statements, the Group incurred losses of US$43.9m for the year ending 30 June 2016 which includes significant non-cash items of U$32.0m. The Group also had net cash outflows from operating activities for the year totalling US$4.2m. Range considers that with anticipated production growth from its waterflood programme, this cash outflow will be eliminated in the 2017 financial year.

At the reporting date, Range had US$13.0m of unrestricted cash at bank. Range has net current liabilities (excluding cash, restricted deposits, option liability and provisions) of US$6.5m. This cash, net revenue from production, and extended credit terms of 720 days provided by LandOcean for all oil field work undertaken in Trinidad is more than sufficient to cover the Group's cash requirements for the 12 months from date of sign off including any net current liabilities due.

The Company will seek to rationalise the portfolio of non-core assets and redeploy capital to maximise current production from its assets in Trinidad and pursue growth opportunities that enhance cash generation and returns to shareholders.

Adoption of new and revised accounting standards

In the year ended 30 June 2016, the directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current annual reporting period.

As a result of this review, the directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Company and, therefore, no material change is necessary to Group accounting policies.

(a) Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Range Resources Limited ("Parent Entity" or "Company") as at 30 June 2016 and the results of all subsidiaries for the year then ended. Range Resources Limited and its subsidiaries together are referred to as the "Group".

Subsidiaries are all those entities (including special purpose entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its investment with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

Where controlled entities have entered or left the Group during the year, their operating results have been included/excluded from the date control was obtained or until the date control ceased. A list of controlled entities is contained in Note 15 to the financial statements. All controlled entities have a June financial year-end.

All inter-company balances and transactions between entities in the Group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the Company.

Associates are all entities over which the Group has significant influence but not control or joint control, generally accompanying a shareholding of between 20-50% of the voting rights. Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting, after initially being recognised at cost.

(b) Income tax

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the reporting date within each jurisdiction.

Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Deferred tax is credited in profit or loss except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

(c) Property, plant and equipment

Owned assets

Plant and equipment are measured on the historical cost basis less accumulated depreciation and impairment losses.

The cost of fixed assets constructed within the Group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

Oil and gas assets

These properties represents the accumulation of all exploration, evaluation and development expenditure, pre-production development costs and ongoing costs of continuing the develop reserves for production incurred by or on behalf of the entity in relation to areas of interests.

Where further development expenditure is incurred in respect of a property after the commencement of production, such expenditure is carried forward as part of the cost of that property only when expected future economic benefits are to be received, otherwise such expenditure is classified as part of the cost of production.

Depreciation

The depreciable amount of all fixed assets including capitalised lease assets is depreciated on a straight-line basis over their useful lives to the Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable asset are:

 
 Class of Fixed Asset      Depreciation 
                            Rate 
 Plant & equipment         11.25% - 33% 
 Production equipment      10 - 20% 
 Motor vehicles, 
  furniture & fixtures     25 - 33% 
 Leasehold improvements    10 - 12.50% 
 

The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the asset's employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

An asset's carrying amount is written down to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in profit or loss. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to accumulated losses.

(d) Exploration and evaluation expenditure and the recognition of assets

Generally, exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

The carrying values of expenditures carried forward are reviewed for impairment at each reporting date when the facts, events or changes in circumstances indicate that the carrying value may be impaired.

Accumulated expenditures are written off to profit or loss to the extent to which they are considered to be impaired.

Range Resources Limited is applying AASB 6 Exploration for and Evaluation of Mineral Resources which is equivalent to IFRS 6. The carrying value of exploration and evaluation expenditure is historical cost less impairment.

Ongoing exploration costs incurred in respect of the Group's Trinidadian and Colombian interests are expensed as incurred. Initial acquisition costs to obtain the right to explore are capitalised.

(e) Producing assets

Upon the commencement of commercial production from each identifiable area of interest, the exploration and evaluation expenditure incurred up to that point is impairment tested and then reclassified to producing assets.

When production commences, the accumulated costs for the relevant area of interest are amortised on a units of production method based on the ratio of actual production to remaining proved reserves (P1) as estimated by independent petroleum engineers over the life of the area according to the rate of depletion of the economically recoverable reserves.

Subsequent costs are included in the asset's carrying amount, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

The carrying amount of producing assets is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount of an asset is the greater of its fair value less costs to sell and its value in use. In assessing value in use, an asset's estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where an asset does not generate cash flows that are largely independent from other assets or groups of assets, the recoverable amount is determined for the cash generating unit to which the asset belongs. For producing assets, the estimated future cash flows for the value-in-use calculation are based on estimates, the most significant of which are 2P hydrocarbon reserves, future production profiles, commodity prices, operating costs and any future development costs necessary to produce the reserves. Under a fair value less costs to sell calculation, future cash flows are based on estimates of 2P hydrocarbon reserves. Estimates of future commodity prices are based on the Group's best estimate of future market prices with reference to external market analysts' forecasts, current spot prices and forward curves. Future commodity prices are reviewed at least annually.

An asset's carrying amount is written down to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in profit or loss. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to accumulated losses.

The Group records the present value of the estimated cost of legal and constructive obligations to restore operating locations in the period in which the obligation arises. The nature of restoration activities includes the removal of facilities, abandonment of wells and restoration of affected areas. A restoration provision is recognised and updated at different stages of the development and construction of a facility and then reviewed on an annual basis. When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying amount of the related exploration and evaluation/development assets.

Over time, the liability is increased for the change in the present value based on a post-tax discount rate appropriate to the risk inherent in the liability. The unwinding of the discount is recorded as an accretion charge within finance costs. The carrying amount capitalised in oil and gas properties is depreciated over the useful life of the related asset.

Costs incurred that relate to an existing condition caused by past operation and do not have a future economic benefit are expensed.

   (f)   Financial instruments 

The Group's financial instruments include cash and cash equivalents, trade and other receivables and available-for-sale financial assets.

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition, these instruments are measured as set out below.

The Group classifies its financial assets in the following categories: loans and receivables and available-for-sale investments. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets include non-derivative financial assets designated in this category not included in any of the other categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to the available for sale investment revaluation reserve in equity. Investments are designated as available-for-sale if they do not have fixed maturities and fixed determinable payments and management intends to hold them for the medium to long term.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities held at cost less impairment, including recent arm's length transactions, reference to similar instruments and option pricing models.

Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are analysed between translation differences resulting from changes in amortised cost of the security and other changes in the carrying amount of the security. The translation differences related to changes in the amortised cost are recognised in profit or loss, and other changes in carrying amount are recognised in the available for sale investment revaluation reserve in equity. Changes in the fair value of other monetary and non-monetary securities classified as available-for-sale are recognised in equity.

Impairment of assets

The Group assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity and included in profit or loss. Impairment losses recognised in the statement of profit or loss and other comprehensive income on equity instruments classified as available-for-sale are not reversed through profit or loss.

Recognition and de-recognition

Regular purchases and sales of financial assets are recognised on trade-date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs. Financial assets are de-recognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and reward of ownership.

When the securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity are included in profit or loss as gains and losses for investment securities.

(g) Foreign currency transactions and balances

Functional and presentation currency

The functional currency of each entity within the Group is determined using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in United States dollars which is the Company's functional and presentation currency.

Transaction and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in profit or loss.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity; otherwise the exchange difference is recognised in profit or loss.

(h) Provisions

Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects the current market assessments of the time value of money and the risk specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

   (i)   Cash and cash equivalents 

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

   (j)   Trade receivables 

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Trade receivables are generally due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account (provision for impairment of trade receivables) is used when there is objective evidence that the Group will not be able to collect all amounts due, according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of impairment allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

The amount of impairment loss is recognised in profit or loss within other expenses. When a trade receivable, for which an impairment allowance had been recognised, becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.

(k) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. Revenue is recognised when the amount of revenue can be reliably measured, and it is probable that future economic benefits will flow to the Group.

Revenue from the sale of oil and gas and related products is recognised when the Group has transferred to the buyer the significant risks and rewards of ownership and the amounts can be measured reliably. In the case of oil, this usually occurs at the time of lifting.

Interest revenue is recognised on a time proportion basis taking into account the interest rates applicable to the financial assets.

   (l)   Goods and Services Tax (GST) 

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the consolidated statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(m) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(n) Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement for disclosure purposes.

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is the current bid price.

The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash follows at the current market interest rate that is available to the Group for similar financial instruments.

(o) Investments in associates

Investments in associates are accounted for using the equity method of accounting in the consolidated financial statements.

Under the equity method, the investment in the associate is carried in the consolidated statement of financial position at cost plus post-acquisition changes in the Group's share of net assets of the associate.

After application of the equity method, the Group determines whether it is necessary to recognise any additional impairment loss with respect to the Group's net investment in the associate.

The Group's share of the associate post-acquisition profits or losses is recognised in the statement of profit or loss and other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group's share of losses in the associate equals or exceeds its interest in the associate, including any unsecured long-term receivables and loans, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

The reporting dates of the associate and the Group are identical and the associate's accounting policies conform to those used by the Group for like transactions and events in similar circumstances.

(p) Prepayments for investments

Prepayments for acquisitions of financial assets are recorded at the fair value of consideration to acquire the assets.

On satisfaction of all terms of the acquisition contract have been satisfied the prepayment is transferred and accounted for as an investment.

(q) Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition unless alternative terms are agreed. The Group's most material balance is with LandOcean which has credit payment terms of 720 days.

   (r)   Dividends 

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the financial year but not distributed at reporting date.

   (s)   Contributed equity 

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

   (t)   Earnings per share 

Basic earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares.

(u) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the managing director.

(v) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which they are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

(w) Intangible assets (goodwill)

Goodwill is measured at cost less any impairment write downs. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose, identified according to operating segments (note 29).

(x) Share-based payments

The fair value of options granted is recognised as an expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted, which includes any market performance conditions and the impact of any non-vesting conditions but excludes the impact of any service and non-market performance vesting conditions.

(y) Employee benefits

Wages and salaries and annual leave

Liabilities for wages and salaries, including non-monetary benefits are recognised in current liabilities in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Long service benefit

The liability for long service benefit is recognised in current and non-current liabilities, depending on the unconditional right to defer settlement of the liability for at least 12 months after the reporting date. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

(z) Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased assets, and operating leases, under which the lessor effectively retains substantially all such risks and benefits.

Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased assets, or if lower, the present value of minimum lease payments. Lease payments are allocated between the principal component of the lease liability and the finance costs, so as to achieve a constant rate of interest on the remaining balance of the liability.

Leased assets acquired under a finance lease are depreciated over the asset's useful life or over the shorter of the asset's useful life and the lease term if there is no reasonable certainty that the company will obtain ownership at the end of the lease term.

Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-line basis over the term of the lease.

(aa) Borrowings

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are classified as non-current.

(bb) Compound financial instruments

Compound financial instruments issued by the Group comprise convertible notes that can be converted to ordinary shares at the option of the holder, when the number of shares to be issued is fixed.

The liability component of a compound financial instrument is recognised initially at the fair value of a similar liability that does not have an equity conversion option. The equity component is recognised initially at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the effective interest method. The equity component of a compound financial instrument is not remeasured subsequent to initial recognition.

Interest related to the financial liability is recognised in profit or loss. On conversion the financial liability is reclassified to equity and no gain or loss is recognised.

Convertible notes that can be converted to share capital at the option of the holder and where the number of shares is variable, contains an embedded derivative liability. The embedded derivative liability is calculated (at fair value) first and the residual value is assigned to the debt host contract. The embedded derivative is subsequently measured at fair values and movements are reflected in the profit and loss.

Certain convertible notes issued by the Group which include embedded derivatives (option to convert to variable number of shares in the Group are recognised as financial liabilities at fair value through profit or loss. On initial recognition, the fair value of the convertible note will equate to the proceeds received and subsequently the liability is measured at fair value at each reporting period until settlement. The fair value movements are recognised on the profit or loss as finance costs.

(cc) Finance costs

Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred.

(dd) Non-current assets classified as held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell. For non-current assets to be classified as held for sale, they must be available for immediate sale in their present condition and their sale must be highly probable.

An impairment loss is recognised for any initial or subsequent write down of the non-current assets to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of a non-current asset, but not in excess of any cumulative impairment loss previously recognised.

Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of assets held for sale continue to be recognised.

Non-current assets classified as held for sale are presented separately on the face of the consolidated statement of financial position, in current assets. The liabilities of disposal groups classified as held for sale are presented separately on the face of the statement of financial position, in current liabilities.

   (ee)        Discontinued operations 

A discontinued operation is a component of the Group's business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which:

   -      represents a separate major line of business or geographical area of operations 

- is part of a single co-ordinated plan to dispose of a separate major line of business or geographical are of operations

   -      is a subsidiary acquired exclusively with a view to re-sale. 

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale.

When an operation is classified as a discontinued operation, the comparative consolidated statement of profit or loss and other comprehensive income is re-presented as if the operation had been discontinued from the start of the comparative year.

Note 2: Critical accounting estimates and judgements

The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Areas involving a higher degree of judgement or complexity, or areas where estimations and assumptions are significant to the financial statements are disclosed here.

Producing asset expenditure

The classification of exploration and evaluation expenditure to producing assets is based on the time of first commercial production. Producing asset expenditure for each area of interest is carried forward as an asset provided certain conditions listed in Note 1(e) are met and depreciated on a unit of production basis on P1 reserves. P1 reserves have been determined by an independent expert.

Producing assets are assessed for impairment when facts and circumstances suggest that the carrying amount of a production asset may exceed its recoverable amount. These timings, calculations and reviews require the use of assumptions and judgement. The related carrying amounts are disclosed in Note 19.

Reserves and resources

Estimates of reserves requires judgement to assess the size and quality of reservoirs and their anticipated recoveries. Estimates of reserves are used to calculate depreciation, depletion and amortisation charges.

Impairment of goodwill and producing assets

The Group tests annually whether goodwill or the producing assets has suffered any impairment in accordance with the accounting policies stated in notes 1(e) and 1(w). The recoverable amount of the cash-generating unit to which the assets belong is estimated based on the present value of future cash flows. The expected future cash flow estimation is always based on a number of factors, variables and assumptions, the most important of which are estimates of reserves, future production profiles, commodity prices and costs. In most cases, the present value of future cash flows is most sensitive to estimates of future oil price and discount rates. A change in the modelled assumptions in isolation could materially change the recoverable amount. Refer to note 16 for details of these key assumptions.

Deferred tax liability

Upon acquisition of SOCA Petroleum Ltd, in accordance with the requirement of AASB 112 Income Taxes, a deferred tax liability of US$46,979,878 was recognised in relation to the difference between the carrying amount for accounting purposes of deferred development assets and their actual cost base for tax purposes. The carrying value of this deferred tax liability has increased to US$47,344,960 at 30 June 2016. In the event that the manner by which the carrying value of these assets is recovered differs from that which is assumed for the purpose of this estimation, the associated tax charges may be significantly less than this amount.

Assets held-for-sale

As part of the Company's strategy to rationalise non-core assets, the Company committed to a plan to dispose its shares in Strait Oil & Gas Limited ("Strait"). The company is in advanced discussions and negotiations surrounding the sale of this asset which is currently anticipated to complete in the 2017 financial year. Given current market conditions around exploration assets, the Company anticipates that part of any consideration will be deferred or contingent. The asset is therefore recognised at fair value being the expected recoverable value on sale in relation to non-contingent or deferred aspects of that sale. No value is assigned to the contingent or deferred aspect.

An impairment loss in respect of assets held-for-sale is generally measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on re-measurement are recognised in profit or loss.

Share based payments transactions

The Group measures the cost of equity-settled share-based payment transactions with employees by reference to the fair value of the equity instruments at the grant date. The fair value is determined using a Black-Scholes model. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity.

Classification of operations to discontinued

The assets classified as discontinued operations represent separate major lines of business and geographical areas of operations.

 
 Note 3: Revenue                                             Consolidated 
                                                           2016                  2015 
                                                            US$                   US$ 
               From continuing operations 
  Revenue from sale of oil                                        7,062,226   13,152,954 
 
               Other income 
  Interest income                                                    45,210        3,390 
  Other income                                                        5,983      425,198 
                                              -----------------------------  ----------- 
                                                                     51,193      428,588 
                                              -----------------------------  ----------- 
 Note 4: Expenses                                              Consolidated 
                                                    2016                    2015 
                                                     US$                     US$ 
               Loss before income tax 
               includes 
               the following specific 
               expenses: 
 
   (a)           Cost of sales 
  Costs of production                                4,944,478                 3,125,464 
  Royalties                                          2,104,894                 4,654,241 
  Staff costs                                        2,322,352                 3,315,271 
  Oil and gas properties depreciation, 
   depletion and amortisation                        5,490,676                 4,917,052 
                                              ----------------  ------------------------ 
  Total cost of sales                               14,862.400                16,012,028 
                                              ----------------  ------------------------ 
 
 (b)           Finance costs 
  Interest and premium paid 
   on financial liabilities 
   at fair value                                       370,983                 2,550,028 
  Fair value movement of option 
   liability                                       (1,643,570)                 (127,883) 
  Facility fees settled in 
   shares                                                    -                 1,575,637 
               Foreign exchange loss                 1,507,714                         - 
  Interest expense                                     667,839                   349,793 
               Other finance expenses                   31,355                         - 
                                              ----------------  ------------------------ 
  Total finance costs                                  934,321                 4,347,575 
                                              ----------------  ------------------------ 
 
               General and administration 
                expenses 
  Equity based payments                                      -                 2,157,037 
  Directors' and officers' 
   fees and benefits                                   601,413                   999,571 
  Share based payments - employee, 
   director and consultant options                     250,849                   580,455 
  Other expenses                                     2,547,776                 6,211,431 
  Total general and administration 
   expenses                                          3,400,038                 9,948,494 
                                              ----------------  ------------------------ 
 
 (c)           Asset values written-down 
  Impairment of current receivables                    600,000                    17,937 
  Impairment of non-current 
   receivables                                               -                    20,992 
  Impairment of investment 
   in available for sale financial 
   assets                                              400,761                   654,000 
                                              ----------------  ------------------------ 
  Total assets written-down                          1,000,761                   692,929 
                                              ----------------  ------------------------ 
 
 During the current year the Group chose to 
  fully write down a current receivable due to 
  uncertainty over its recoverability. In addition 
  to this, the Group also fully wrote down its 
  investment in International Petroleum by US$346,000 
  due to the continued suspension of trading 
  of its shares and inability to therefore calculate 
  an appropriate carrying value. A further available 
  for sale asset was also written down by US$54,761, 
  being Range's estimate of its recoverable value 
  at the balance sheet date. 
 (d)             Exploration 
                 Expenditure 
                 Puntland                                1,812                   314,982 
                 Trinidad (i)                        4,123,048                 1,810,529 
                 Colombia                              136,575                    77,237 
                 Total exploration expenses          4,261,435                 2,202,748 
                                              ----------------  ------------------------ 
 
   (i) Amounts expensed in the year in Trinidad 
   relate to land fees in relation to Guayaguayare 
   and St Mary's for which the company policy 
   is to expense. 
 (e)             Loss on 
                 disposal of 
                 subsidiary 
                 Range Resources Drilling 
                  Limited                                    -                 1,491,857 
                 Total loss on disposal                      -                 1,491,857 
                                              ----------------  ------------------------ 
 
 

Details of loss on sale of subsidiaries

 
  Consideration received             -         4,870,000 
  Carrying amount of net 
   assets sold                       -         6,319,358 
                               -------  ---------------- 
  Loss on sale                       -       (1,449,358) 
  Reclassification of FX 
   reserve                           -          (42,499) 
  Income tax expense on gain         -                 - 
                               -------  ---------------- 
  Total loss on sale                 -       (1,491,857) 
                               -------  ---------------- 
 

Note 5: Discontinued operations

In 2013, the Company indicated that it was in the process of disposing of the Company's North Chapman Ranch and East Texas Cotton Valley assets hence the transfer from producing assets to assets classified as held-for-sale in that accounting period. As announced on 23 December 2014 a sale of Range's 100% equity interest in Range Australia (US) Ltd (holder of Texas assets) was agreed with Citation Resources Limited. It completed on 24 March 2015.

The Company is committed to a plan to dispose of its 45% interest in the unlisted company Strait Oil & Gas Limited (Strait).

 
                                            2016          2015 
                                             US$           US$ 
      (a) Results of discontinued 
       operations 
  Revenue                                          -       238,194 
  Cost of sales                                    -     (104,799) 
  Asset write off                        (4,750,000)   (6,779,476) 
  Other expenses                           (130,000)     (949,169) 
                                        ------------  ------------ 
  Results from operating 
   activities                            (4,880,000)   (7,595,250) 
  Income tax (expense)/benefit                     -             - 
                                        ------------  ------------ 
  Results from operating 
   activities, after tax                 (4,880,000)   (7,595,250) 
                                        ------------  ------------ 
  Loss on sale of subsidiary 
   asset                                           -     (101,909) 
                                        ------------  ------------ 
  Loss from discontinued 
   operations                            (4,880,000)   (7,697,159) 
                                        ------------  ------------ 
 
    The loss from the discontinued operations 
    of US$4,880,000 (2015: US$7,697,159) 
    is attributable entirely to the owners 
    of the Company. 
    (b) Cash flows gained from/(used 
     in) discontinued operations 
  Net cash used in operating 
   activities                              (130,000)     (801,003) 
                                        ------------  ------------ 
  Net cash flow for the 
   year                                    (130,000)     (801,003) 
                                        ------------  ------------ 
 

Note 6: Income tax expense

 
                                                     Consolidated 
                                                  2016           2015 
                                                   US$            US$ 
 (a)    Income tax expense 
 
  Current tax                                            -        624,618 
  Deferred tax                                   1,070,852        843,188 
        Adjustments for 
         current tax of 
         prior periods                              13,668              - 
                                                 1,084,520      1,467,806 
                                             -------------  ------------- 
 
        Income tax expense/(benefit) 
         is attributable 
         to: 
  Profit/(loss) from 
   continuing operations                         1,084,520      1,467,806 
        Profit/(loss) from 
         discontinued operations                         -              - 
                                             -------------  ------------- 
  Aggregate income 
   tax expense                                   1,084,520      1,467,806 
                                             -------------  ------------- 
 
 (b)    The prime facie 
         tax on profit from 
         ordinary activities 
         before income tax 
         is reconciled to 
         the income tax 
         as follows: 
  Loss from continuing 
   operations before 
   income tax                                 (37,910,365)   (21,114,089) 
  Loss from discontinuing 
   operations before 
   income tax                                  (4,880,000)    (7,697,159) 
                                             -------------  ------------- 
                                              (42,790,365)   (28,811,248) 
                                             -------------  ------------- 
 
        Prime facie tax 
         payable on profit 
         from ordinary activities 
         before income tax 
         at 30% (2015: 30%) 
  Group                                       (12,837,110)    (8,643,374) 
                                             -------------  ------------- 
                                              (12,837,110)    (8,643,374) 
                                             -------------  ------------- 
 
        Add tax effect 
         of: 
 
  Other taxes                                       13,668        477,852 
  Expenses not deductible 
   for tax                                      18,518,390      7,752,706 
  Income not assessable 
   for tax                                     (6,010,578)    (3,757,145) 
  Tax losses not 
   brought to account                           10,650,658      1,938,572 
  Benefit of tax 
   losses not previously 
   recognised                                            -      3,608,262 
 
  Deferred tax assets 
   not brought to 
   account                                       (242,740)      2,315,848 
  Differences in 
   tax rates                                   (9,007,770)    (2,224,915) 
                                                 1,084,520      1,467,806 
                                             -------------  ------------- 
        Unrecognised Deferred 
         tax asset 
  Capital losses                                   985,528      1,084,219 
  Revenue losses                                 9,462,107     10,033,815 
  Other                                          4,942,534      3,265,732 
                                             -------------  ------------- 
                                                15,390,169     14,383,766 
                                             -------------  ------------- 
 
 
 
 

Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in Note 1(b) occur.

 
                                                    Consolidated 
                                                 2016          2015 
                                                  US$           US$ 
(c)   Recognised deferred tax assets 
 Temporary differences                          3,959,803       286,693 
                                                3,959,803       286,693 
                                             ------------  ------------ 
      Recognised deferred tax liabilities 
 Accelerated depreciation                    (17,515,407)  (11,039,440) 
 DTL arising on business 
  combination                                (30,046,205)  (32,319,759) 
 Net deferred tax 
  liabilities                                (47,561,612)  (43,359,199) 
                                             ------------  ------------ 
 

Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in Note 1(b) occur.

Note 7: Auditors' remuneration

 
                                                         Consolidated 
                                                    2016          2015 
                                                     US$           US$ 
       Remuneration of the auditor of 
        the Parent Entity for: 
       Auditing or reviewing the financial 
        report by BDO Audit (WA) Pty Ltd            84,726          216,866 
       Non-audit services provided by 
        a related entity of BDO Audit (WA) 
        Pty Ltd in respect to Parent Entity's 
        tax compliance.                             34,149           72,570 
                                                  --------  --------------- 
       Total remuneration for the Parent 
        Entity                                     118,875          289,436 
                                                  --------  --------------- 
 
               Remuneration of the auditors of 
               the subsidiaries: 
       Auditing or reviewing the financial 
        report by BDO UK                             3,707            3,933 
       Auditing or reviewing the financial 
        report by BDO Barbados                      17,743           13,030 
       Auditing or reviewing the financial 
        report by BDO Trinidad                      25,188           40,530 
        Total remuneration for the subsidiaries     46,638           57,493 
                                                  --------  --------------- 
 

Note 8: Earnings per share

 
                                                    Consolidated 
                                                 2016           2015 
                                               US cents       US cents 
 
 (a)    Basic loss per share 
 
  (Loss) per share from continuing 
   operations attributable to the 
   ordinary equity holders of the 
   company                                         (0.54)         (0.44) 
 
    (Loss) per share attributable 
    to the ordinary equity holders 
    of the company                                 (0.60)         (0.59) 
 
 (b)    Diluted loss per share 
 
        (Loss) per share from continuing 
         operations attributable to the 
         ordinary equity holders of the 
         company                                      n/a            n/a 
 
          (Loss) per share attributable 
          to the ordinary equity holders 
          of the company                              n/a            n/a 
 
 (c)    Reconciliation of loss used 
         in calculating earnings per 
         share 
 
        Basic/ Diluted loss per share 
  Loss from continuing operations 
   attributable to the ordinary 
   equity holders of the company             (38,994,885)   (22,581,895) 
  Loss attributable to the ordinary 
   equity holders of the company             (43,874,885)   (30,279,054) 
 
 
 
 (d)      Weighted average number of shares 
           used as the denominator                              2016 No.        2015 No. 
  Weighted average number of ordinary 
   shares used as the denominator 
   in calculating basic EPS                                 7,266,100,594   5,095,406,444 
 
 Effect of dilutive securities 
 Options on issue at reporting date could potentially 
  dilute earnings per share in the future. The effect 
  in the current year is to reduce the loss per 
  share hence they are considered anti-dilutive. 
  Accordingly the diluted loss per share has not 
  been disclosed. 
 
 

Note 9: Cash and cash equivalents

 
                                   Consolidated 
                                 2016         2015 
                                  US$          US$ 
 Cash at bank and on hand     13,001,252   10,530,104 
 
 

Risk exposure

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 34.

   Note 10:           Restricted cash 
 
                            Consolidated 
                            2016      2015 
                             US$       US$ 
 
 Cash held in secured 
  account                 8,000,000      - 
 Total                    8,000,000      - 
                         ----------  ----- 
 

Restricted cash is held in a deposit account that is secured against a bank guarantee given in respect of the Group's work commitments on the St Mary's block in Trinidad. The funds are freely transferrable but alternative collateral acceptable to the bank, would need to be put in place to replace the cash security.

Note 11: Trade and Other Receivables

 
                                      Consolidated 
                                  2016           2015 
                                   US$            US$ 
 Current 
 Trade receivables 
  (i)                              375,348       672,331 
 Taxes receivable                3,960,541     3,820,265 
 Other debtors (ii)              3,373,820     3,145,825 
 Less provision for 
 impairment                    (3,089,443)   (2,489,443) 
                             -------------  ------------ 
                                 4,620,266     5,148,978 
                             -------------  ------------ 
 
 

Fair value approximates the carrying value of trade and other receivables at 30 June 2016 and 30 June 2015.

(i) Trade receivables are generally due for settlement within 30 days. They are presented as current assets unless collection is not expected for more than 12 months after the reporting date. Trade receivables are neither past due nor impaired.

(ii) Other debtors are comprised primarily of advances to unrelated third parties. Given the uncertainty over the likelihood of repayment these advances have been included within the provision for impairment raised at 30 June 2016 and 30 June 2015.

Risk exposure

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 34.

Note 12: Other current assets

 
                    Consolidated 
                   2016      2015 
                    US$       US$ 
 Current 
 Prepayments      178,158   352,724 
 Other assets           -   430,661 
                  178,158   783,385 
                 --------  -------- 
 

Note 13: Assets held-for-sale

Assets classified as held for sale are as follows:

 
                             Consolidated 
                          2016                          2015 
                           US$                           US$ 
 
 Strait Oil & Gas Limited - 45% 
 equity interest                         1,250,000   5,000,000 
 Latin American Resources - 20% 
 equity interest                                 -   1,000,000 
                                        ----------  ---------- 
 Total                                   1,250,000   6,000,000 
                                        ----------  ---------- 
 
 

Movements in assets classified as held for sale are as follows:

 
 Opening net book amount                       6,000,000    11,000,000 
 Transfer from investment in associate                 -     2,179,358 
 Sold in period                                        -   (1,000,000) 
 Impairment loss relating to discontinued 
  operations                                 (4,750,000)   (6,179,358) 
                                            ------------  ------------ 
 Closing net book amount                       1,250,000     6,000,000 
                                            ------------  ------------ 
 

Impairment losses of US$4,750,000 for write-downs of the disposal group to the lower of its carrying amount and its recoverable amount have been included in 'loss on discontinued operations' (see note 5 and note 36). The impairment losses have been applied to reduce the carrying amount of the assets held-for-sale within the disposal group. There is no cumulative income or expenses included in other comprehensive income relating to the disposal group.

Note 14: Financial assets available-for-sale

 
                                                   Consolidated 
                                                    2016        2015 
                                                     US$         US$ 
 Interest in other 
  corporations                                45,238         446,000 
                                          --------------  ---------- 
 Total available-for-sale 
  financial assets                            45,238         446,000 
                                          --------------  ---------- 
 
 Movement in financial assets available-for-sale 
 Opening balance                                 446,000     876,347 
 Shares received on settlement of loan 
  receivable                                           -     171,254 
 Shares sold in period                                 -   (947,601) 
 Transferred from other 
  current assets                                       -   1,000,000 
 Impairment recognised 
  in profit and loss                           (400,762)   (654,000) 
                                              ----------  ---------- 
 Closing balance                                  45,238     446,000 
                                              ----------  ---------- 
 
 
 
  Available-for-sale financial assets comprise investments 
   in the ordinary share capital of various entities. 
   There are no fixed returns or fixed maturity date 
   attached to these investments. 
 

Risk exposure

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 34.

Note 15: Controlled Entities

 
 The consolidated financial statements incorporate 
  the assets, liabilities and results of the following 
  subsidiaries in accordance with accounting policy 
  described in Note 1(a). 
   Controlled Entities Consolidated     Country of Incorporation     Percentage Owned (%) 
  -----------------------------------  --------------------------  ----------------------- 
                                                                     30 June      30 June 
                                                                       2016         2015 
  -----------------------------------  --------------------------  -----------  ---------- 
   Subsidiaries of Range Resources 
   Limited: 
   Range Resources (Barbados) Limited           Barbados               100          100 
   SOCA Petroleum Limited                       Barbados               100          100 
   West Indies Exploration Company 
    Limited                                     Trinidad               100          100 
   Range Resources Trinidad Limited             Trinidad               100          100 
   Range Resources (Barbados) GY 
    Limited                                     Barbados               100          100 
   Range Resources St. Mary's Limited           Trinidad                -           100 
   Range Resources GY Shallow Limited           Trinidad               100          100 
   Range Resources GY Deep Limited              Trinidad               100          100 
   Range Resources (Cayman) Limited          Cayman Islands             -           100 
   Range Resources HK Limited                   Hong Kong              100           - 
   Range Resources Upstream Services 
    Limited                                  United Kingdom            100          100 
  -----------------------------------  --------------------------  -----------  ---------- 
 

Note 16: Goodwill

Goodwill is measured as described in note 1(v). Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses.

The Group reported goodwill of US$28,985,014, which was derived from the acquisition of SOCA Petroleum Limited through the parent's subsidiary Range Resources (Barbados) Ltd.

 
                                       Goodwill 
                                  2016           2015 
                                   US$            US$ 
 At 1 July 2015 
 
   Cost                         46,198,974     46,198,974 
 Impairment write down        (17,213,960)              - 
                             -------------  ------------- 
 Net book amount                28,985,014     46,198,974 
                             -------------  ------------- 
 
   Year ended 30 June 2016 
 
   Opening net book amount      46,198,974     46,198,974 
 Additions-acquisition                   -              - 
 Impairment charge            (17,213,960)              - 
                             -------------  ------------- 
 Closing net book amount        28,985,014     46,198,974 
                             -------------  ------------- 
 

(a) Impairment tests for goodwill

During the year ending 30 June 2016, the Group recorded an impairment of US$17,213,960 with respect to goodwill. The impairment principally arose due to the lower oil price environment.

Goodwill has been allocated for impairment testing purposes to a single cash-generating unit (CGU), identified according to operating segments, being Trinidad.

Estimates of the recoverable amount is based on an asset's value in use using a discounted cash flow method and is most sensitive to the following key assumptions:

   -      Obtaining all required approvals and permissions to undertake waterflood development 
   -      Obtaining lease extensions until 2030 
   -      P1 and P2 Recoverable reserves 
   -      Commodity price of between US$43 and US$81 per barrel dependent on the year. 
   -      Operating costs at 12%-43% of revenue, depending on oil price and production at that time. 
   -      Post-tax discount rate of 11.1% 

Economical recoverable reserves represent management's expectations at the time of completing the impairment testing and based on the reserves statements and exploration and evaluation work undertaken by appropriately qualified persons. A summary of the Company's Trinidad reserves and resources are published on the company's website.

The commodity price for oil was based on mean WTI forecast oil price data from a variety of different analysts and other sources. Estimates are US$43/bbl in 2016, US$57/bbl in 2017, US$66/bbl in 2018, US$66/bbl in 2019, US$67/bbl in 2020 and then escalating at 2% per annum for the remainder of the project.

Operating cost assumptions were based on FY17 budgets, actual costs incurred in FY16 and estimates of additional operating costs for waterflood activities received from LandOcean.

(b) Sensitivity to change of assumptions

An individual movement of 20% against any one key assumption would cause the carrying value of the cash generating unit to materially exceed its recoverable amount. An adverse movement of 20% in reserves and resources, commodity prices, operating costs, discount rate or capex would lead to an additional impairment of US$6.6million, US$34.4million, US$17.1million, US$8.3million and $10.1million respectively.

Any impairment charge in excess of the goodwill value would be applied against producing assets.

Note 17: Property, plant & equipment

 
 Consolidated       Production    Gathering     Leasehold        Motor         Total 
                     equipment      station     improvement     vehicle, 
                    and access     and field                   furniture, 
                       roads        office                      fixtures 
                                                    US$        & fittings        US$ 
                        US$           US$                         US$ 
 
 Year ended 
  30 June 
  2015 
 Opening 
  net book 
  amount             10,105,359      139,269        384,816       624,825     11,254,269 
 Foreign 
  currency 
  movement              143,202     (29,878)      (116,584)         2,167        (1,093) 
 Additions            1,413,411       23,543         24,181       115,163      1,576,298 
 Disposals                    -                                   (3,100)        (3,100) 
 Disposal 
  of subsidiary    (10,030,580)            -              -     (245,780)   (10,276,360) 
 Depreciation 
  charge              (793,660)     (15,844)       (45,098)     (192,970)    (1,047,572) 
                  -------------  -----------  -------------  ------------  ------------- 
 Closing 
  net book 
  amount                837,732      117,090        247,315       300,305      1,502,442 
 
 At 30 June 
  2015 
 Cost                 5,206,843      529,326        556,333     1,235,929      7,528,431 
 Accumulated 
  depreciation      (4,369,111)    (412,236)      (309,018)     (935,624)    (6,025,989) 
                  -------------  -----------  -------------  ------------  ------------- 
 Net book 
  amount                837,732      117,090        247,315       300,305      1,502,442 
 
 Year ended 
  30 June 
  2016 
 Opening 
  net book 
  amount                837,732      117,090        247,315       300,305      1,502,442 
 Foreign 
  currency 
  movement             (35,321)      (4,687)        (8,370)       (9,521)       (57,899) 
 Additions            1,140,919            -              -        68,887      1,209,806 
 Disposals                    -            -              -      (11,799)       (11,799) 
 Depreciation 
  charge              (173,165)     (14,284)       (24,645)     (101,228)      (313,322) 
                  -------------  -----------  -------------  ------------  ------------- 
 Closing 
  net book 
  amount              1,770,165       98,119        214,300       246,644      2,329,228 
                  -------------  -----------  -------------  ------------  ------------- 
 
 At 30 June 
  2016 
 Cost                 6,111,168      505,510        534,020     1,135,223      8,285,921 
 Accumulated 
  depreciation      (4,341,003)    (407,391)      (319,720)     (888,579)    (5,956,693) 
                  -------------  -----------  -------------  ------------  ------------- 
 Net book 
  amount              1,770,165       98,119        214,300       246,644      2,329,228 
                  -------------  -----------  -------------  ------------  ------------- 
 

Note 18: Exploration and evaluation expenditure

 
                                                   Consolidated 
                                   2016          2015 
                                    US$           US$ 
 
 Opening net book 
 amount                           668,951           523,605 
 Additions                              -           145,346 
 Foreign exchange                (23,150)                 - 
 Closing net book 
 amount                           645,801         668,951 
                            -------------  ---------------- 
 
 
 

At 30 June 2016, the US$645,801 (30 June 2015 - US$668,951) capitalised exploration and evaluation expenditure relates to the interests of the Group in the Guayaguayare and St Mary's Blocks in Trinidad.

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

The recoverability of the carrying amount of exploration assets is dependent on the successful development and commercial exploitation or sale of the respective mining permits.

No capitalised costs (2015: US$145,346) have been included in the statement of cash flows from investing activities.

Note 19: Producing assets

 
                                                  Consolidated 
                                             2016             2015 
                                              US$              US$ 
 
 Cost                                     134,697,008        122,141,667 
 Accumulated amortisation                (39,619,926)       (31,791,175) 
  Net book value                           95,077,082         90,350,492 
                                    -----------------  ----------------- 
 
 Opening net book amount                   90,350,492         82,517,820 
 Foreign currency movement                (1,747,957)                395 
 Additions                                 15,007,723         11,392,667 
 Impairment charge                        (3,350,869)                  - 
 Amortisation charge                      (5,181,507)        (3,560,390) 
 Closing net book amount                   95,077,882         90,350,492 
                                    -----------------  ----------------- 
 
 
 

Note 20: Trade and other payables

(a) Current

 
                              Consolidated 
                            2016         2015 
                             US$          US$ 
 Trade payables           1,048,601    4,991,035 
 Interest bearing 
  trade payables          1,556,463            - 
 Sundry payables and 
  accrued expenses        9,639,809    8,663,160 
                         12,244,873   13,654,195 
                        -----------  ----------- 
 

(a) Non- current

 
                        Consolidated 
                         2016      2015 
                          US$       US$ 
 Interest bearing 
  trade payables      13,998,006      - 
 Accrued expenses      9,765,999      - 
                      23,764,005      - 
                     -----------  ----- 
 

Risk exposure

Trade payables are non-interest bearing with the exception of debt due to LandOcean classed under interest bearing trade payables.

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 34.

Note 21: Borrowings at fair value

 
 
   (a) Borrowings 
   at fair value                             Consolidated 
                                       2016           2015 
                                        US$            US$ 
 Opening balance                       7,518,077            - 
 Proceeds from borrowings                      -    5,500,000 
 Face value premium                            -    2,250,000 
 Interest due on 
  outstanding balance                    137,920      330,577 
 Cash repayment                      (7,655,997)            - 
 Repayment via equity                          -    (562,500) 
 Closing net book 
  amount                                       -    7,518,077 
                                  --------------  ----------- 
 
 

All amounts due to Lind were repaid during the year.

(b) Option liability

 
                                Consolidated 
                               2016      2015 
                                US$       US$ 
 Option liability at fair 
  value through profit or 
  loss                        835,714   808,083 
                             --------  -------- 
                              835,714   808,083 
                             --------  -------- 
 

During 2016, no options were exercised prior to year-end and 367,143,136 options with a fair value of US$1,661,430 were issued to Beijing Sibo Investment Management LP under the share placement (refer Note 25). These options are recognised as a financial liability given the exercise price is stated in GPB. Total fair value movement recognised in P&L was a gain of US$1,633,799 (2015: US$127,883).

During the prior year 49,051,468 options with a face value of US$1,426,883 were exercised prior to year-end and 31,000,000 options with a fair value of US$172,926 were issued.

Note 22: Provision for rehabilitation

The Group records the present value of the estimated cost of legal and constructive obligations to restore operating locations in the period in which the obligation arises. The nature of restoration activities includes removal of facilities, abandonment of wells and restoration of affected areas.

 
                                          Consolidated 
                                         2016           2015 
                                          US$            US$ 
 Provision for rehabilitation                740,268     734,858 
                                       -------------  ---------- 
 
 

Movement in the provision for rehabilitation during the financial year are set out below:

 
 
 Carrying amount at the 
  start of the year                  734,858   696,224 
 Additional provision recognised       5,410    38,634 
 Carrying amount at the 
  end of the year                    740,268   734,858 
                                    --------  -------- 
 
 

Note 23: Deferred tax liability

 
                                Fair value     Accelerated 
                                  uplift       depreciation        Total 
                                on business 
                                combination 
                                   US$             US$             US$ 
 Movements 
 Year ended 30 June 2015 
 Opening balance                 35,010,572       9,365,461    44,376,033 
 Foreign currency movement          (1,041)        (32,147)      (33,188) 
 Disposal of subsidiary           (723,359)     (1,189,198)   (1,912,557) 
 Charged/(credited) 
 
   *    to profit or loss       (1,966,411)       2,895,322       928,911 
                              -------------  --------------  ------------ 
 Closing net book amount         32,319,761      11,039,438    43,359,199 
                              -------------  --------------  ------------ 
 
 Year ended 30 June 2016 
 Opening balance                 32,319,761      11,039,438    43,359,199 
 Foreign currency movement                -       (669,950)     (669,950) 
 Charged/(credited) 
 
   *    to profit or loss       (2,273,556)       7,145,919     4,872,363 
 Closing net book amount         30,046,205      17,515,407    47,561,612 
                              -------------  --------------  ------------ 
 
 

As a result of business combination, at the date of acquisition a deferred tax liability has been recognised in relation to the difference between the carrying amount of the deferred exploration and development costs for accounting purposes and the cost base of the asset for tax purposes in accordance with the requirements of Australian Accounting Standard AASB 112 Income Taxes. The Group does not have a tax payable in relation to the deferred tax liability at 30 June 2016 and it is anticipated that the deferred taxation liability will be reduced in the future as the deferred exploration and development costs are amortised in future periods.

Note 24: Other non-current liabilities

 
                                    Consolidated 
                                2016         2015 
                                 US$          US$ 
 Employee service benefits     422,315         521,257 
                              --------  -------------- 
                               422,315          521,257 
                              --------  ---------------- 
 

Risk exposure

Information about the Group's exposure to credit risk, foreign exchange risk and price risk is provided in Note 34.

Note 25: Contributed equity

 
                                                 Consolidated 
                                             2016            2015 
                                              US$             US$ 
 7,589,790,100 (2015: 5,767,169,188) 
 fully paid ordinary shares               404,874,079    382,535,744 
 Share issue costs                       (20,991,887)   (19,330,467) 
                                        -------------  ------------- 
                                          383,882,192    363,205,277 
                                        -------------  ------------- 
 
 
 
                                                      Consolidated 
                                   2016           2016           2015            2015 
                                    No.            US$            No.             US$ 
 (a)    Fully paid ordinary 
         shares 
 
  At the beginning 
   of reporting 
   period                      5,767,169,188   382,535,744   4,521,201,870     364,567,692 
  Shares issued 
   during year                 1,822,620,912    22,338,335   1,245,967,318      17,968,052 
  Total contributed 
   equity                      7,589,790,100   404,874,079   5,767,169,188     382,535,744 
                              --------------  ------------  --------------  -------------- 
 

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held.

On a show of hands every holder of ordinary shares present at a meeting of the Company, in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

 
 (b)    Unissued Fully Paid Ordinary        2016           2015 
         Shares 
                                            No.             No. 
  Opening balance (i)                     30,000,000     386,188,780 
  Issued in year (ii)                              -   (356,188,780) 
        Cancelled in year (i)           (30,000,000)               - 
                                       -------------  -------------- 
  Total contributed equity                         -      30,000,000 
                                       -------------  -------------- 
 
 

(i) Under the terms of an agreement between shareholders in Strait, the Company was required to issue 30,000,000 shares to other investors in Strait upon the completion of the next well in the Georgia drilling programme or upon disposal of Range's shareholding in Strait. The obligation to issue shares to Strait has expired.

(ii) During the 2013 financial year, the company entered into a US$12 million financing facility with a Hong Kong based private institutional investor, Abraham Ltd. Under the terms of the subscription agreement, Abraham was to subscribe for shares in the Company in two US$6 million tranches, with the first tranche issued during the year, whilst the second tranche was to be issued following shareholder approval. Shareholder approval for the issue of shares for the US$6 million second tranche was sought and obtained at the General Meeting of the Company on 11(th) July 2014.

 
 
 
   c)   Movements in fully paid ordinary share capital 
 
                                                                         Issue 
                                Details                  Number          price             US$ 
                                                       of shares          US$ 
 
            1 July 
              2015   Opening balance                 5,767,169,188                     382,535,744 
  (Tranche 2) Share 
   placement to Beijing 
   Sibo Investment Management 
   LP (i)                                            1,797,620,912       0.012          22,033,080 
  Share placement to 
   directors and employees                              25,000,000       0.012             305,255 
           30 June 
              2016   Closing balance                 7,589,790,100                     404,874,079 
                                                   ---------------  --------------  -------------- 
 
            1 July 
              2014   Opening balance                 4,521,201,870                     364,567,692 
  Transfer from unissued                               356,188,780       0.017           6,000,000 
  Shares issued as 
   loan repayment                                       58,440,891       0.010             562,500 
  Shares issued upon 
   option conversion                                    49,051,468    0.010-0.024          923,880 
  Shares issued as 
   Collateral Shares                                    38,000,000       0.008             300,979 
  Shares issued to 
   employees                                            19,987,481    0.013-0.040          580,458 
  Shares issued in 
   lieu of corporate 
   advisory/ capital 
   raising and loan 
   commencement fees                                    74,298,698     0.009-0.037       1,633,315 
  Issued to Beijing 
   Sibo Investment Management 
   LP                                                  650,000,000       0.012           7,966,920 
           30 June 
              2015   Closing balance                 5,767,169,188                     382,535,744 
                                                   ---------------  --------------  -------------- 
 
   (i)         Under the share placement, the following options were issued (refer Note 21): 
 
              Date of    Exercise    Number 
               Expiry     Price       Under Option 
              3 Sept 
 Tranche 1     2019      GBP0.01     194,585,862 
              3 Sept 
 Tranche 2     2019      GBP0.02     172,557,274 
 
 
                                                     Consolidated 
                                                 2016            2015 
                                                  No.             No. 
 (d)    Options 
  At the beginning of reporting 
   period                                      788,998,289    453,203,084 
  Options issued during year (refer 
   Notes 21 and 31)                            406,143,136    394,701,840 
  Options expired                            (312,085,678)    (9,855,166) 
  Options exercised during year                          -   (49,051,469) 
  Total options                                883,055,747    788,998,289 
                                            --------------  ------------- 
 

At 30 June 2016, the unissued ordinary shares of Range Resources Limited under option are as follows:

 
 Date of Expiry     Exercise      Number 
                     Price         Under Option 
 11 July 2016       GBP0.037      5,000,000 
 25 July 2016       GBP0.021      476,190 
 29 July 2016       GBP0.021      952,381 
 31 August 2016     GBP0.021      6,714,284 
 31 August 2016     GBP0.020      9,000,000 
 30 September 
  2016              GBP0.019      3,947,368 
 30 September 
  2016              GBP0.018      8,666,670 
 31 October 2016    GBP0.018      694,445 
 31 October 2016    GBP0.017      2,205,885 
 31 October 2016    GBP0.016      1,250,000 
 31 October 2016    GBP0.015      17,333,336 
 30 November 
  2016              GBP0.015      3,000,001 
 30 November 
  2016              GBP0.013      5,153,846 
 11 December 
  2016              A$0.0321      2,000,000 
 31 December 
  2016              GBP0.012      2,000,000 
 31 December 
  2016              GBP0.011      5,000,000 
 31 January 2017    GBP0.075      5,180,000 
 31 January 2017    GBP0.011      23,636,364 
 9 September 
  2017              GBP0.03       7,500,000 
 15 October 2017    GBP0.01203    31,000,000 
 31 January 2018    A$0.05        1,000,000 
 14 July 2018       GBP0.01       161,472,247 
 14 July 2018       GBP0.02       118,729,593 
 31 August 2018     GBP0.01       14,000,000 
 3 September 
  2019              GBP0.01       194,585,862 
 3 September 
  2019              GBP0.02       172,557,274 
 30 March 2020      GBP0.01       80,000,000 
                                 -------------- 
 Total number 
  under option                    883,055,746 
                                 -------------- 
 

The holders of these options do not have any rights under the options to participate in any share issues of the company.

During the year ended 30 June 2016, no ordinary shares of Range Resources Limited were issued on the exercise of options (2015: 49,051,468).

Note 26: Reserves

 
                                                              Consolidated 
                                                           2016          2015 
                                                            US$           US$ 
 (a) Share-based payment reserve 
            Balance 1 July                               14,231,578    14,226,861 
            Share based payment expenses (refer 
             note 31)                                       250,847     2,157,038 
            Expired options reclassified to retained 
             earnings                                   (5,933,401)   (2,152,321) 
            Balance 30 June                               8,549,024    14,231,578 
                                                       ------------  ------------ 
 

The share based payment reserve records items recognised as expenses on the fair valuation of shares and options issued as remuneration to employees, directors and consultants.

 
 (b) Option premium reserve 
            Balance 1 July                             12,057,363   10,630,513 
           Fair value movement of exercised options 
            that were originally classified as 
            a derivative liability                              -    1,426,850 
            Balance 30 June                            12,057,363   12,057,363 
                                                      -----------  ----------- 
 

The option premium reserve is used to recognise the grant date fair value of options.

 
 (c) Foreign currency translation reserve 
            Balance 1 July                             3,459,939   3,004,632 
           Currency translation differences arising 
            during the year                              160,799     455,307 
            Balance 30 June                            3,620,738   3,459,939 
                                                      ----------  ---------- 
 

The foreign currency translation reserve is used to record exchange differences arising from the translation balances of foreign subsidiaries.

 
            Balance 30 June    24,227,125   29,748,880 
                              -----------  ----------- 
 

Note 27: Commitments

Expenditure and Capital commitments

 
                              Consolidated 
                             2016       2015 
                              US$        US$ 
 Not later than 1 year    30,614,669   211,000 
                          30,614,669   211,000 
                         ===========  ======== 
 

Expenditure commitments for 2016 include the remaining expenditure due under Purchase Order 2.

Note 28: Contingent Liabilities and Contingent Assets

Colombian exploration licences

In January 2016, Range received notification from Agencia Nacional de Hidrocarburos ("ANH") in Colombia advising that the E&P licences over three exploration blocks (PUT-5, VSM-1 and VMM-7) had been revoked. The licences had been awarded to a Consortium of Optima Oil Corporation ("Optima") and the Company in December 2012. ANH alleges that various obligations and commitments agreed within the exploration licences have not been complied with and also that invalid letters of credit had been presented to ANH by Optima to support the minimum work obligations. The effect of revocation of the licences by ANH is: (i) expiry of the contracts, (ii) Range would be unable to enter into any further agreement with Colombian State for a period of 5 years, (iii) final settlement and liquidation of the licences, and (iv) joint and several liability of the Consortium partners to ANH for all sums due to ANH and for potential damages claim of up to the aggregate financial value of the work commitments of the Consortium for the three licences which totalled approximately US$53million. The value of the allegedly invalid letters of credit provided was approximately US$11million.

On 1 September 2016, Range received a demand notice from ANH addressed to the Consortium seeking payment of the full amount of the outstanding obligations due to ANH totalling up to approximately US$53million. The deadline for making the payment, or otherwise responding to ANH with a defence against the action, was 7 September 2016. A comprehensive response was subsequently submitted to ANH by the consortium on this date. This response addressed the numerous areas in which Range and the consortium object to the demand which was received from ANH.

A Joint Operating Agreement ("JOA") is in place amongst the Consortium partners. Under the terms of the JOA it was agreed between the Consortium that it was the sole responsibility of Optima to complete the minimum work obligations and to provide all necessary funding, including the provision of valid letters of credit in favour of ANH. Under the JOA, Range has an indemnity to recover from Optima any payment incurred by Range for any contractual obligations under the licences which were not paid by Optima. Range has engaged legal advisers in Colombia.

Range has no material assets in Colombia.

In addition to the ongoing work with legal advisers in Colombia, Range has sought advice from its Australian advisers regarding the ability of ANH to try and enforce a claim against Range in Australia (where Range is incorporated). The Company's legal advisers confirm that there is no provision in Australian law to enable either judgments of Colombian courts, or administrative orders of ANH to be recognised in Australia. If ANH did seek to make any claim in Australia it would be required to commence court proceedings in the Australian courts and to prove its entitlement to such claim. Range would have the right to defend such claim. Range has not received any claim from ANH in Australia and would defend itself against any such claim if ever received.

The Company continues to work with Optima and legal advisers to defend its position to the maximum extent possible and is considering what further action can be taken to challenge the actions taken by ANH. At this time Range cannot provide any indication of the likely timeline for any resolution to this matter, nor any likely financial impact.

Geeta Maharaj

Range has received an invoice from Geeta Maharaj, a Trinidad based attorney seeking payment of approximately US$1.9million. The invoice purports to relate to legal work undertaken during mid-2014 in the preparation of inter-company loan agreements. Range strongly refutes the amount of this purported invoice and intends to vigorously defend its position. Range has engaged Trinidad legal counsel to assist in this matter. Range considers that that the amount of the purported invoice is vastly excessive and is not payable.

Guayaguayare licence

On 21 May 2015, Range announced that it had signed an amendment agreement in respect of its interest in the Guayaguayare Block in Trinidad. As a result of the amended agreement, Range acquired the full interest of Niko Resources Ltd. (Niko), which is 32.5% in the Shallow and 40% in the Deep Production Sharing Contracts (PSCs). Following completion of the agreement, Range holds 80% interest in the Deep PSC and 65% interest in the Shallow PSC.

The consideration payable for the increased interest is contingent upon commercial discovery and subsequent production, whereby Range will pay Niko upon certain production milestones being achieved from the two PSCs, with the maximum payable of US$19 million based on production in excess of 10 million barrels. Range is currently unable to assess the likelihood of these milestones being met, and consequently, no provision has been raised.

The Directors are not aware of any further contingent liabilities or contingent assets as at 30 June 2016

Note 29: Segment reporting

 
  30 June 2016                        Trinidad       Unallocated                Total 
                                           US$               US$                  US$ 
  Segment revenue 
  Revenue from 
   continuing operations             7,062,226                 -            7,062,226 
  Revenue from                               -                 - 
   discontinued 
   operations 
  Other income                           5,983            45,210               51,193 
                           -------------------  ----------------  ------------------- 
  Total revenue                      7,068,209            45,210            7,113,419 
  Segment result 
  Segment expenses                (43,323,546)       (6,580,238)         (49,903,784) 
                           -------------------  ----------------  ------------------- 
  Loss before 
   income tax                     (36,255,337)       (6,535,028)         (42,790,365) 
  Income tax                       (1,084,520)                 -          (1,084,520) 
  Loss after income 
   tax                            (37,339,857)       (6,535,028)         (43,874,885) 
  Segment assets 
  Segment assets(i)                144,249,237        13,843,405          158,092,642 
                           -------------------  ----------------  ------------------- 
  Total assets                     144,249,237        13,843,405          158,092,642 
  Segment liabilities 
  Segment liabilities               81,191,617         4,663,893           85,855,510 
                           -------------------  ----------------  ------------------- 
  Total liabilities                 81,191,617         4,663,893           85,855,510 
 
 
  30 June 2015                              Trinidad              Unallocated                  Total 
                                                 US$                      US$                    US$ 
  Segment revenue 
  Revenue from 
   continuing operations                  13,152,954                        -             13,152,954 
  Revenue from 
   discontinued 
   operations                                      -                  238,194                238,194 
  Other income                                     -                  428,588                428,588 
                           -------------------------  -----------------------  --------------------- 
  Total revenue                           13,152,954                  666,782             13,819,736 
  Segment result 
  Segment expenses                      (23,162,985)             (19,467,998)           (42,630,983) 
                           -------------------------  -----------------------  --------------------- 
  Loss before 
   income tax                           (10,010,031)             (18,801,216)           (28,811,247) 
  Income tax                             (1,467,806)                        -            (1,467,806) 
                           -------------------------  -----------------------  --------------------- 
  Loss after income 
   tax                                  (11,477,837)             (18,801,216)           (30,279,053) 
  Segment assets 
  Segment assets(i)                      144,457,523               17,458,496            161,916,019 
                           -------------------------  -----------------------  --------------------- 
  Total assets                           144,457,523               17,458,496            161,916,019 
  Segment liabilities 
  Segment liabilities                     49,846,696               17,045,866             66,892,562 
                           -------------------------  -----------------------  --------------------- 
  Total liabilities                       49,846,696               17,045,866             66,892,562 
 
   (i)         Unallocated assets 
 
 
    Segment assets 
                           30 June 2016    30 June 
                                            2015 
                           US$             US$ 
  Cash                     12,189,822      9,868,592 
  Assets held for 
   sale                    1,250,000       6,000,000 
  Other                    403,583         1,589,904 
----------------------- 
  Total segment assets     13,843,405      17,458,496 
 

Note 29: Segment reporting (continued)

   (a)        Other segment information 
 
                     Consolidated 
                    2016                       2015 
                     US$                        US$ 
 Segment other revenue - all other 
 segments 
 Other income                         45,210  428,588 
                                      45,210  428,588 
 
 
 
Segment result - all other segments 
Equity based payments                                                 -   2,157,037 
Directors' and officers' fees and benefits                      500,229     999,571 
Impairment of available for sale asset                          400,762     496,958 
Share based payments - employee and consultant shares           188,969     580,455 
Discontinued operations                                       3,880,000   7,935,352 
Other expenses                                                1,610,278   7,298,625 
                                                             6,580,238   19,467,998 
 
 

Accounting policies

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. The chief operating decision maker is the Chief Executive Officer and through this role the Board of Directors.

Following the adoption of AASB 8, the identification of the Group's reporting segments remain consistent with prior periods, with management allocating resources to segments on a geographical basis.

Information regarding these segments is presented above. The accounting policies of the reportable segments are the same as those of the Group. Segment information is prepared in conformity with the accounting policies of the entity as disclosed in Note 1.

Segment revenues and expenses are those directly attributable to the segments and include any joint revenue and expenses where a reasonable basis of allocation exists. Segment assets include all assets used by a segment and consist principally of cash, receivables, plant and equipment, exploration expenditure capitalised and development assets net of accumulated depreciation and amortisation. While most such assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. Segment disclosures do not include deferred income taxes.

Revenue from discontinued operations from Texas of nil (2015: US$238,194) was derived from several customers who each account for greater than 10% of this amount. Revenue from Trinidad of US$7,062,226 (2015: US$13,152,954) is derived from the subsidiary's sole customer, which is Petroleum Company of Trinidad and Tobago Limited.

Intersegment transfers

Segment revenues, expenses and results do not include any transfers between segments.

 
 Note 30: Cash flow information                                                  Consolidated 
                                                                               2016          2015 
                                                                                US$           US$ 
 Reconciliation of cash flow from operations with loss after income tax 
 
 Loss after income tax                                                     (43,874,885)  (30,279,054) 
 Non-cash flows in profit 
     Depreciation                                                             5,490,676     4,766,581 
     Share based payment- consultants and employees                             250,847     2,737,443 
     Impairment of non-current assets                                        20,564,829             - 
     Finance costs (non-cash)                                               (1,633,799)     2,107,281 
     Impairment of available for sale assets                                    400,762       654,000 
     Loss on sale of subsidiary                                                       -     1,593,766 
     Loss on sale of PPE                                                              -         3,100 
     Foreign exchange (gain)/loss                                             1,768,479     (124,789) 
     Impairments recognised on held for sale assets                           4,750,000     6,779,476 
     Share of net loss of associate                                                   -             - 
     Net loss on sale of available for sale financial assets                          -       496,958 
 Other non-cash items                                                                               - 
     Decrease in other current assets                                           605,227       375,820 
     Decrease/(increase) in trade and other receivables                         528,712     (608,228) 
     (Increase)/decrease in deferred tax asset                              (3,673,112)       175,634 
     (Decrease)/increase in trade and other payables                        (1,409,322)       162,554 
     Increase in accrued interest                                                     -     2,830,577 
     Decrease in income tax payable                                            (10,170)      (13,442) 
     Increase in deferred tax liabilities                                     4,202,416     1,097,078 
     (Decrease)/increase in provisions                                         (93,532)       289,981 
     Increase in non-current operating payables                               7,946,837             - 
 Net cash (outflow)/inflow from operations                                  (4,186,035)   (6,955,264) 
 
 
 Non-cash investing and financing activities                                     Consolidated 
                                                                               2016        2015 
                                                                                US$         US$ 
 Repayment of borrowings: 
     Through issue of shares                                                         -     562,500 
 Share issued as share based payments or finance or capital raising costs    1,661,430   4,844,724 
 
 

Note 31: Share-based payments

The following share-based payment arrangements occurred during the financial year ended at 30 June 2016.

 
Quantity       Security          US$ Value   Purpose 
81,500,000(i)  Unlisted options  106,278    Options issued to employees 
 
   (i)         Includes 42,500,000 options to be granted once shareholder approval obtained 

The value of options have been expensed to the profit and loss on a proportionate basis for each financial year from grant to vesting date.

The following share-based payment arrangements occurred during the financial year ended at 30 June 2015.

 
 Quantity    Security                   US$ Value  Purpose 
19,987,481  Fully paid ordinary shares  580,406    Shares issued to employees and consultants 
42,742,654  Unlisted options            1,176,524  Options issued in lieu of consulting fee 
75,000,000  Unlisted options            85,464     Options issued to Directors in period 
7,500,000   Unlisted options            895,049    Options issued in lieu of consulting fees 
 

The fair value at grant date of unlisted options is independently determined using a Black Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

Employee option plan

Current year

The following options were issued to key management personnel, employees and consultants:

 
 Name            Number of options  Grant date        Expiry Date 
 Key management  25,000,000         1 September 2015  30 March 2020 
  personnel 
 Employees and   14,000,000         1 September 2015  31 August 2018 
  consultants 
 Key management  42,500,000         25 May 2016       30 March 2020 
  personnel (i) 
 
   (i)         options to be granted once shareholder approval obtained 

The options have an exercise price of GBP0.01 per share.

The vesting conditions of the options issued to key management personnel are as follows:

(a) 25% became exercisable on 31 March 2016

(b) 25% will become exercisable upon the Company reaching production of 1,500 barrels of oil per day for a continuous 15 day period in Trinidad

(c) 25% will become exercisable upon the Company reaching production of 2,500 barrels of oil per day for a continuous 15 day period in Trinidad

(d) 25% will become exercisable upon the Company reaching production of 4,000 barrels of oil per day for a continuous 15 day period in Trinidad

The vesting conditions of the options issued to employees and consultants are as follows:

(a) 33% will become exercisable upon the Company reaching production of 1,500 barrels of oil per day for a continuous 15 day period in Trinidad

(b) 33% will become exercisable upon the Company reaching production of 2,500 barrels of oil per day for a continuous 15 day period in Trinidad

(c) 34% will become exercisable upon the Company reaching production of 4,000 barrels of oil per day for a continuous 15 day period in Trinidad

Options granted 1 September 2015

The value per option at the grant date was 0.56 cents for key management personnel options and 0.45 cents for employee options, determined using the Black Scholes option price model using the following key inputs:

Volatility: 100% Probability of meeting vesting conditions: 100%

   Risk free rate: 1.92%                              Exercise price: GBP0.01 
   USD/GBP exchange rate: 0.6509            Share price on grant date GBP0.0057 

Options granted 25 May 2016

The fair value of options to be granted have been estimated at 30 June 2016 at 0.30 cents using the Black Scholes options pricing model using the following key inputs:

Volatility: 100% Probability of meeting vesting conditions: 100%

   Risk free rate: 1.92%                                           Exercise price: GBP0.01 
   USD/GBP exchange rate: 0.7468                        Share price on grant date GBP0.0037 

Year ended 30 June 2015

During the previous year the following options were issued to Directors and employees:

 
 Name             Number of options 
 Mr Yan Liu       30,000,000 
 Mr David Chen    30,000,000 
 Mr Zhiwei Gu     7,500,000 
 Ms Juan Wang     7,500,000 
 
 

The vesting conditions of these options are as follows:

(a) 25% will become exercisable on the date that is one year from the issue date (27 March 2016)

(b) 25% will become exercisable upon the Company reaching production of 1,500 barrels of oil per day for a continuous 15 day period in Trinidad

(c) 25% will become exercisable upon the Company reaching production of 2,500 barrels of oil per day for a continuous 15 day period in Trinidad

(d) 25% will become exercisable upon the Company reaching production of 4,000 barrels of oil per day for a continuous 15 day period in Trinidad

During the year 20,000,000 options were cancelled following Yan Liu's change in position from executive to non-executive director. An amount of US$22,791 was reversed in the current year.

Expenses recognised in the profit & loss

During the year, share-based payments recognised in profit and loss amounts to US$250,847 (2015: US$2,157,037)

 
                                                                 2016                        2015 
                                                                 Number          Average     Number         Average 
                                                                                  exercise                   exercise 
                                                                                  price US$                  price US$ 
As at 1 July                                                     788,998,289     0.047       453,203,083    0.060 
Granted during year: 
 Under employee option plan                                      39,000,000      0.013       75,000,000     0.016 
 Other options issued                                            367,143,136     0.019       319,701,840    0.019 
Exercised                                                        -               -           (49,051,468)   0.017 
Forfeited                                                        (312,085,678)   0.045       (9,855,166) 
As at 30 June                                                    883,055,747     0.019       788,998,289    0.023 
 
  Vested and exercisable at 30 June                              823,055,747    0.019        713,998,289   0.047 
Weighted average remaining contractual life options outstanding  682 days                    673 days 
 at end of period 
 

Note 32: Related party transactions

 
(a) Parent entity 
            The ultimate Parent Entity and ultimate Australian Parent Entity within the Group is Range 
             Resources Limited. 
(b) Subsidiaries 
           Interests in subsidiaries are set out in Note 15. 
 
 (c) Transactions with Key Management Personnel 
 

The following transactions occurred during the year with Key Management Personnel or their related parties:

 
                                             2016                                             2015 
                                              US$                                              US$ 
Consulting fees paid or payable to Soncer Limited, a company owned by Mr Graham Lyon, for 
the provision of corporate advisory and capital raising services (i)                             -  12,794 
Consulting fees paid or payable to DNR Consulting, a company owned by Mr David Rieke, for 
the provision of corporate advisory and services (ii)                                            -  13,486 
 
 
 
Balances at year end to related parties: 
David Chen and related entities              12,267        - 
Lubing Liu and related entities              10,375        - 
Dr Yi Zeng                                    1,042        - 
Kiki Wang and related entities                2,500        - 
Kerry Gu and related entities                20,833        - 
Sir Sam Jonah (i)                           152,943  191,440 
Marcus Edwards-Jones (i)                          -   33,566 
Soncer Limited (i)                            1,519   18,442 
 
 
 
   (i)     These were related parties throughout the prior financial year until 28 November 2014. 
   (ii)    David Rieke was a related party throughout the prior financial year until 11 December 2014. 
   (d)        Key Management Personnel compensation 
 
                               Consolidated 
                             2016       2015 
                              US$        US$ 
Short-term benefits         561,467    778,338 
One-off payment              15,700          - 
Post-employment benefits     24,246     28,152 
Termination benefits              -    150,253 
Share based payments        234,424     85,464 
Total                       835,837  1,042,207 
 
 

Note 33: Parent entity information

The following details information related to the Parent Entity Range Resources Limited, at 30 June 2016. The information presented here has been prepared in accordance using consistent accounting policies as presented in Note 1.

 
                                                                 2016                     2015 
                                                                  US$                      US$ 
 
 Current assets                                        17,142,499                      15,290,123 
 Non-current assets                                    59,743,582                      97,208,375 
 Total assets                                          76,886,081                     112,498,498 
 
 Current liabilities                                    4,648,918                      15,333,201 
 Total liabilities                                      4,648,918                      15,333,201 
 
 Contributed equity                                                  383,882,182      363,205,245 
 Accumulated losses                                                (335,088,153)    (295,165,636) 
 Reserves                                                             23,443,134       29,125,688 
 Total equity                                                         72,237,163       97,165,297 
 
 Loss for the year from continuing operations                       (40,975,917)     (29,028,556) 
 Loss for the year from discontinued operations                      (4,880,000)      (7,355,641) 
 Total loss for the year                                            (45,855,917)     (36,384,197) 
 
 Other comprehensive loss for the year                                         -                - 
 Total comprehensive loss for the year                              (45,855,917)     (36,384,197) 
 
 

The contingent liabilities of the parent are included within those of the Group as disclosed in Note 28.

The contractual commitments of the parent are included within those of the Group as disclosed in Note 27.

Note 34: Financial risk management

The Group has exposure to the following risks from their use of financial instruments:

   --      Credit risk 
   --      Liquidity risk 
   --      Market risk 

This note presents information about the Group's exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are included throughout these financial statements.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.

Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed to reflect changes in market conditions and the Group's activities. The Group, through training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all consultants and agents understand their roles and obligations.

Credit risk

Credit risk is the risk of financial loss to the Group if counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group's investments, receivables and cash held at financial institutions.

Credit risk is managed on a group basis. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions.

The credit quality of financial assets that are neither past due or impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates.

 
                                                                                    Consolidated 
                                                                                  2016        2015 
Cash at bank, restricted deposits and short-term bank deposits (S&P ratings)       US$         US$ 
AAA                                                                               155,801           - 
AA-                                                                             4,635,076   9,868,592 
A+                                                                                719,460           - 
BBB+                                                                               95,205     661,512 
BBB-                                                                            7,382,980           - 
Not rated                                                                       8,012,730           - 
                                                                               21,001,252  10,530,104 
 

Exposure to credit risk

The carrying amount of the Group's financial assets represents the maximum credit exposure. The Group's maximum exposure to credit risk at the reporting date was:

 
                                       Consolidated 
                                     2016        2015 
                                      US$         US$ 
Trade and other receivables (i)    4,620,266   5,148,978 
Cash and cash equivalents         13,001,252  10,530,104 
Restricted deposits                8,000,000           - 
                                  25,621,518  15,679,082 
 
   (i)         Counterparties without an external credit rating 

Loans and receivables

The Group's exposure to credit risk is influenced mainly by the individual characteristics of each debtor. No collateral was held in relation to these receivables.

Impairment losses

Impairment loss US$600,000 was recognised in relation to other receivables respectively in the year. During the prior year, an impairment of US$17,937 on trade and other receivables were recognised.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.

The Group uses activity-based costing to cost its activities, which assists in monitoring cash flow requirements and optimising its cash return on investments. Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 12 months; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

The following are contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

 
Group 
 2016 
                 Carrying     Contractual   6 months or   6 - 12 months        1-2 years         2-5 years 
                  amount       cash flows       less 
Financial 
liabilities 
at amortised 
cost 
Trade and 
 other 
 payables         36,008,878    38,540,925     8,906,905      3,493,614  15,397,807             10,742,599 
                  36,008,878    38,540,925     8,906,905      3,493,614  15,397,807             10,742,599 
 
 
 
Group 
 2015 
                  Carrying amount    Contractual      6 months or    6 - 12 months  1-2 years  2-5 years  Over 5 years 
                                     cash flows          less 
Financial 
liabilities at 
amortised cost 
Trade and other 
 payables              11,998,340       11,998,340       11,998,340              -          -          -             - 
Borrowings              7,518,077        7,518,077        7,518,077              -          -          -             - 
                       19,516,417       19,516,417       19,516,417              -          -          -             - 
 

Market risk

Market risk is the risk that changes in market prices, such as interest rates and equity prices will affect the Group's income or the value of its holdings of available for sale assets. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Equity price risk

The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified on the statement of financial position as available for sale as well as from the option liability held as a current liability.

A 10% increase in Range's share price would result in an increase to the option liability of US$190,323. A decrease would have had the equal but opposite effect.

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar, AU dollar, TT Dollar and British pound.

Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash flow forecasting.

The Group's treasury risk management policy is to closely monitor exchange rate fluctuations. To date, the Group has not sought to hedge its exposure to fluctuations in exchange rates, however this policy will be reviewed on an ongoing basis.

The Group's exposure to foreign currency risk at the reporting date was as follows:

 
                                            Consolidated               Consolidated 
                                         2016          2015          2016         2015 
                                          AUD           AUD           GBP          GBP 
 
 Cash                                     209,285       272,621       585,596     242,304 
 Amount payable to other entities       (119,549)   (1,159,133)      (44,725)   (362,135) 
                                           89,736     (886,512)       540,871   (119,831) 
 
 

Sensitivity

Based upon the amounts above, had the Australian dollar strengthened by 10% against the US dollar with all other variables held constant, the Group post-tax loss for the year on current amounts receivable/payable would have been US$35,798 higher (2015: US$67,885 higher), mainly as a result of foreign exchange gains/losses on translation of AUD denominated payables as detailed in the table above. A 10% weakening of the Australian dollar against the above currencies at 30 June would have had the equal but opposite effect, on the basis that all other variables remain constant.

The Trinidad entities are minimally exposed to foreign exchange risk arising from various currencies, primarily with respect to the United States Dollar.

Note 34: Financial risk management (continued)

Interest rate risk

The group's main interest rate risk arises from non-current receivables. Non-current receivables issued at fixed rates expose the group to fair value interest rate if the loans are carried at fair value. During 2016 and 2015, the group loan receivables were denominated in Australian Dollars, British Pounds and US Dollars.

Profile

At the reporting date, the interest rate profile of the Group's financial instruments which exposes the group to cash flow interest rate risks are:

 
                 Weighted          Floating Interest       Fixed Interest   Non-interest bearing            Total 
                  Average                                     Maturing 
                 Effective                Rate 
               Interest Rate 
              2016     2015        2016          2015      2016    2015       2016        2015        2016         2015 
                %       %           US$           US$      US$     US$        US$         US$          US$          US$ 
Financial 
Assets: 
 
Cash and 
 cash 
 equivalents  0.35%     0.10%    13,001,252    10,530,104     -         -           -           -   13,001,252   10,530,104 
Restricted 
 deposits     0.25%         -     8,000,000             -     -         -           -           -    8,000,000            - 
 
Trade and 
 other 
 receivables      -         -             -             -     -         -   4,620,266   5,148,978    4,620,266    5,148,978 
Available 
 for sale 
 financial 
 assets           -         -             -             -     -         -      45,238     446,000       45,238      446,000 
Non-current 
receivables       -         -             -             -     -         -           -           -                         - 
 
Total 
 Financial 
 Assets                 0.10%    21,001,252    10,530,104     -         -   4,665,504   5,594,978   25,666,756   16,125,082 
 
 
Financial 
Liabilities: 
Trade and other 
 payables          10%    -   -25,320,468              10,688,410   11,998,340  36,008,878  11,998,340 
Borrowings           -  35%  --            7,518,077            -            -           -   7,518,077 
Total Financial 
 Liabilities            35%   -25,320,468  7,518,077   10,688,410  11,998,340   36,008,878  19,516,417 
 
 

Note 34: Financial risk management (continued)

Sensitivity analysis for variable rate instruments

The sensitivity on interest rates for 2016 and 2015 assumes a change of 100 basis points in the interest rates at the reporting date and would have increased / (decreased) profit and loss by the amounts shown. Both analyses for each year assume that all other variables, in particular foreign currency rates, remain constant.

 
                                               2016       2016                           2015       2015 
                          Weighted Average                          Weighted Average 
                            Interest Rate    +100 bps   -100 bps     Interest Rate     +100 bps   -100 bps 
Group                             %             US$        US$             %              US$        US$ 
Variable rate 
instruments 
Financial assets (cash 
 and cash equivalents)          0.31%            -          -            0.10%             -          - 
Financial assets (loan                           -                                         - 
 and receivables)                 -                         -              -                          - 
 
 
 

Fair values versus carrying amounts

The fair value of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

 
Group                                           30 June 2016                   30 June 2015 
                                                     US$                            US$ 
                                                                                            Fair 
                                        Carrying amount   Fair value   Carrying amount      value 
 
  Available-for-sale financial assets            45,238        45,238          446,000       446,000 
Trade and other receivables                   4,620,266     4,620,266        5,148,978     5,148,978 
Cash and cash equivalents                    13,001,252    13,001,252       10,530,104    10,530,104 
Restricted deposits                           8,000,000     8,000,000                -             - 
Trade and other payables                   (36,008,878)  (36,008,878)     (11,998,340)  (11,998,340) 
Borrowings                                            -             -      (7,518,077)   (7,518,077) 
                                           (10,342,122)  (10,342,122)      (3,391,335)   (3,391,335) 
 

The basis for determining fair value is disclosed in Note 1(n).

Other price risk

The Group is not exposed to any other price risks.

Capital management

The entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital.

The entity's overall strategy remains unchanged from 2015.

The capital structure of the group consists of cash and cash equivalents and equity attributable to equity holders of the Company, comprising issued capital, reserves and accumulated losses as disclosed in Notes 25 and 26 respectively. None of the entities within the group are subject to externally imposed capital requirements.

Gearing ratio

The Board reviews the capital structure on an annual basis. As a part of this review the Board considers the cost of capital and the risks associated with each class of capital

 
                                    Consolidated 
                                2016           2015 
                                 US$            US$ 
Financial assets 
Cash and cash equivalents     13,001,252    10,530,104 
Financial liabilities 
Trade and other payables    (36,008,878)  (11,998,340) 
Borrowings                             -   (7,518,077) 
Net assets / (debt)         (23,007,626)   (8,986,313) 
Equity                        72,237,132    95,023,456 
 
Net debt to equity ratio           31.9%            9.5% 
 
 

Categories of financial instruments

 
                                           Consolidated 
                                         2016        2015 
                                          US$         US$ 
Financial assets 
Cash and cash equivalents             13,001,252  10,530,104 
Trade and other receivables            4,620,266   5,148,978 
Available-for-sale financial assets       45,238     446,000 
                                      17,666,756  16,125,082 
Financial liabilities 
Trade and other payables              36,008,878  11,998,340 
Borrowings                                     -   7,518,077 
Option liability                         835,714     808,083 
                                      36,844,592  20,324,500 
 

The carrying amount reflected above represents the Group's maximum exposure to credit risk for such loans and receivables.

Note 35: Fair value measurement of financial Instruments

   (a)      Fair value hierarchy 

AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),

(b) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2), and

(c) Inputs for the asset or liability that are not based on observable market data (unobservable inputs (level 3).

The following table presents the Group's financial assets and financial liabilities measured and recognised at fair value at 30 June 2016 and 30 June 2015 on a recurring basis:

 
                                                        Level 1  Level 2  Level 3   Total 
At 30 June 2016                                           US$      US$      US$ 
 
Assets 
Available for sale financial assets 
Equity securities                                             -        -   45,238   45,238 
Total assets                                                  -        -   45,238   45,238 
 
Liabilities 
Option liability at fair value through profit or loss         -  835,714        -  835,714 
Total liabilities                                             -  835,714        -  835,714 
 
 
                                                         Level 1   Level 2    Level 3    Total 
At 30 June 2015                                            US$        US$       US$ 
 
Assets 
Available for sale financial assets 
Equity securities                                              -           -  446,000     446,000 
Total assets                                                   -           -  446,000     446,000 
 
Liabilities 
Option liability at fair value through profit or loss          -     808,083        -     808,083 
 
 Borrowings                                                    -   7,518,077        -   7,518,077 
 
 Total liabilities                                             -   8,326,160        -   8,326,160 
 

The fair value of financial instruments in active markets such as available for sale securities is based on quoted market bids at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1.

The Group's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the end of the reporting period. There were no transfers between the levels of the fair value hierarchy during the year ended 30 June 2016.

   (b)      Fair values of other financial instruments 

The Group has no financial instruments which are not measured at fair value in the consolidated statement of financial position.

Due to their short term nature, the carrying amounts of the current receivables, current payables, current borrowings, and current other financial liabilities is assumed to approximate their fair value.

Note 36: Fair value measurement of non-financial instruments

   (a)      Non-recurring fair value measurements 

Assets classified as held for sale at 30 June 2016 were measured at fair value less costs to sell in accordance with the Group's accounting policy.

Fair value less costs to sell has been determined based upon offers received from independent third parties to acquire the assets. Due to the way the third party offers are structured, the fair values of assets held for sale has been assessed as a Level 3 measurement as per the fair value hierarchy set out above.

Significant estimates made in determining the fair value of held for sale assets are as follows:

Strait Oil & Gas Limited

The Group made the decision to divest its interest in Strait in June 2014 and the Group is in the process of marketing its equity interest in Strait. The Group is optimistic that a buyer will be found for this asset. In the absence of a fully executed sale agreement at the report date the Group has chosen to write down the value of its interest in Strait to US$1.25million which is considered by the Company to be a fair market value for the level of cash consideration which may be received upon closing of a sale. This valuation is based upon expressions of interest received and negotiations which have taken place with potential purchasers.

   (b)      Fair value hierarchy 

AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

(d) Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),

(e) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2), and

(f) Inputs for the asset or liability that are not based on observable market data (unobservable inputs (level 3).

The Group's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the end of the reporting period. There were no transfers between the levels of the fair value hierarchy during the year ended 30 June 2016.

The following table presents the Group's non-financial instruments measured and recognised at fair value at 30 June 2016 on a non-recurring basis:

 
                                       Level 1  Level 2   Level 3     Total 
At 30 June 2016                          US$      US$       US$ 
 
Assets 
Assets classified as held for sale 
            Strait Oil & Gas Limited         -        -  1,250,000  1,250,000 
Total assets                                 -        -  1,250,000  1,250,000 
 
 
                                       Level 1  Level 2   Level 3     Total 
At 30 June 2015                          US$      US$       US$ 
 
Assets 
Assets classified as held for sale 
            Strait Oil & Gas Limited         -        -  5,000,000  5,000,000 
            Latin American Resources                     2,179,358  2,179,358 
Total assets                                 -        -  7,179,358  7,179,358 
 

Note 37: Events after the reporting date

On 1 September 2016, Range received a demand notice from ANH addressed to the Consortium of Optima Oil Corporation and Range Resources Limited seeking payment of the full amount of the outstanding obligations due to ANH in relation to Range's Colombian assets totalling up to approximately US$53million. For further details on this matter, please refer to Note 28.

Note 38: New accounting Standards and interpretations

Australian accounting Standards/amendments released but not yet effective: 30 June 2016 year end

Certain new accounting Standards and Interpretations have been published that are not mandatory for 30 June 2016 reporting periods and have not been early adopted by the Group. The Group's assessment of the impact of these new Standards and Interpretations is set out below. In all cases the Group intends to apply these standards from the application date as indicated in the table below.

 
Reference  Title        Standard     Group        Key Requirements                                            Impact 
                        application  application 
                        date         date 
AASB 9     Financial    1 January    1 July 2018  AASB 9 addresses the classification, measurement and        There will be 
           Instruments  2018                      derecognition of financial assets and                       no 
                                                  financial liabilities and introduces new rules for hedge    significant 
                                                  accounting.                                                 impact on the 
                                                                                                              Group on the 
                                                  In December 2014, the AASB made further changes to the      adoption of 
                                                  classification and measurement rules                        this 
                                                  and also introduced a new impairment model. These latest    standard. 
                                                  amendments now complete the financial 
                                                  instruments standard. 
AASB 15    Revenue      1 January    1 July 2018  The AASB has issued a new standard for the recognition of   Management is 
           from         2018                      revenue. This will replace AASB                             currently 
           Contracts                              118 which covers contracts for goods and services and       assessing the 
           with                                   AASB111 which covers construction contracts.                impact of the 
           Customers                                                                                          new rules. 
                                                  The new standard is based on the principle that revenue is  At this 
                                                  recognised when control of a good                           stage, the 
                                                  or service transfers to a customer, so the notion of        Group is not 
                                                  control replaces the existing notion                        able to 
                                                  of risks and rewards.                                       estimate the 
                                                                                                              impact of the 
                                                  The standard permits a modified retrospective approach for  new rules on 
                                                  the adoption. Under this approach                           the Group's 
                                                  entities will recognise any applicable transitional         financial 
                                                  adjustments in retained earnings on the                     statements. 
                                                  date of the initial application without restating the       The Group 
                                                  comparative period.                                         will make 
                                                                                                              more detailed 
                                                  Entities will only need to apply the new rules to           assessments 
                                                  contracts that are not completed as of the                  of the impact 
                                                  date of initial application.                                over the 
                                                                                                              next 12 
                                                                                                              months. 
AASB       Amendments   1 January    1 July 2016                                                              There will be 
2015-2     to           2016                       This standard makes amendments to AASB 101 Presentation    no 
           Australian                              of Financial Statements arising from                       significant 
           Accounting                              the IASB's Disclosure Initiative Project. The amendments   impact on the 
           Standards -                             are designed to further encourage                          Group on the 
           Disclosure                              companies to apply professional judgment in determining    adoption of 
           Initiative:                             what information to disclose in the                        this 
           Amendments                              financial statements.                                      standard. 
           to AASB                                                                                            The Group is 
           101                                     The amendments also clarify that companies should use      currently 
                                                   professional judgment in determining                       conducting an 
                                                   where and in what order in formation is to be presented    exercise of 
                                                   in the financial disclosures.                              reviewing 
                                                                                                              financial 
                                                                                                              report 
                                                                                                              disclosures. 
AASB 16    Leases       1 January    1 July 2019  The key features of AASB 16 are as follows:                 To the extent 
                        2019                      Lessee accounting                                           that the 
                                                   *    Lessees are required to recognise assets and          entity, as 
                                                        liabilities for all leases with a term of more than   lessee, has 
                                                        12 months, unless the underlying asset is of a low    significant 
                                                        value.                                                operating 
                                                                                                              leases 
                                                                                                              outstanding 
                                                   *    A lessee measures right-of-use assets similarly to    at 
                                                        other non-financial assets and lease liabilities      the date of 
                                                        similarly to other financial liabilities.             initial 
                                                                                                              application, 
                                                                                                              1 July 2019, 
                                                   *    Assets and liabilities arising from a lease are       right-of-use 
                                                        initially measured on a present value basis. The      assets will 
                                                        measurement includes non-cancellable lease payments,  be recognised 
                                                        and also includes payments to be made in optional     for the 
                                                        periods if the lessee is reasonably certain to        amount of the 
                                                        exercise an option to extend the lease, or not to     unamortised 
                                                        exercise an option to terminate the lease.            portion of 
                                                                                                              the useful 
                                                                                                              life, and 
                                                   *    AASB 16 contains disclosure requirements for leases.  lease 
                                                                                                              liabilities 
                                                                                                              will be 
                                                                                                              recognised 
                                                  Lessor accounting                                           at the 
                                                   *    AASB 16 substantially carries forward the lessor      present value 
                                                        accounting requirements in AASB 117. Accordingly, a   of the 
                                                        lessor continues to classify its leases as operating  outstanding 
                                                        leases or finance leases, and to account for those    lease 
                                                        two types of leases differently.                      payments. 
                                                                                                              Thereafter, 
                                                                                                              earnings 
                                                   *    AASB 16 also requires enhanced disclosures to be      before 
                                                        provided by lessors that will improve information     interest, 
                                                        disclosed about a lessor's risk exposure,             depreciation, 
                                                        particularly to residual value risk.                  amortisation 
                                                                                                              and tax 
                                                                                                              (EBITDA) will 
                                                                                                              increase 
                                                                                                              because 
                                                                                                              operating 
                                                                                                              lease 
                                                                                                              expenses 
                                                                                                              currently 
                                                                                                              included in 
                                                                                                              EBITDA will 
                                                                                                              be recognised 
                                                                                                              instead as 
                                                                                                              amortisation 
                                                                                                              of the 
                                                                                                              right-of-use 
                                                                                                              asset, and 
                                                                                                              interest 
                                                                                                              expense on 
                                                                                                              the lease 
                                                                                                              liability. 
                                                                                                              However, 
                                                                                                              there will be 
                                                                                                              an overall 
                                                                                                              reduction in 
                                                                                                              net profit 
                                                                                                              before tax in 
                                                                                                              the early 
                                                                                                              years of a 
                                                                                                              lease 
                                                                                                              because the 
                                                                                                              amortisation 
                                                                                                              and interest 
                                                                                                              charges will 
                                                                                                              exceed the 
                                                                                                              current 
                                                                                                              straight-line 
                                                                                                              expense 
                                                                                                              incurred 
                                                                                                              under AASB 
                                                                                                              117 Leases. 
                                                                                                              This trend 
                                                                                                              will reverse 
                                                                                                              in the later 
                                                                                                              years. 
                                                                                                              There will be 
                                                                                                              no change to 
                                                                                                              the 
                                                                                                              accounting 
                                                                                                              treatment for 
                                                                                                              short-term 
                                                                                                              leases less 
                                                                                                              than 12 
                                                                                                              months 
                                                                                                              and leases of 
                                                                                                              low value 
                                                                                                              items, which 
                                                                                                              will continue 
                                                                                                              to be 
                                                                                                              expensed on a 
                                                                                                              straight-line 
                                                                                                              basis. 
AASB       Amendments   1 January    1 July 2017  This standard amends AASB 112 Income Taxes to clarify the   There will be 
2016-1     to           2017                      requirements on recognition of deferred                     no 
           Australian                             tax assets for unrealised losses on debt instruments        significant 
           Accounting                             measured at fair value.                                     impact on the 
           Standards -                                                                                        Group's 
           Recognition                                                                                        results on 
           of Deferred                                                                                        the adoption 
           Tax Assets                                                                                         of this 
           for                                                                                                standard. 
           Unrealised 
           Losses 
           (AASB 112) 
AASB       Amendments   1 January    1 July 2017  This standard amends AASB 107 Statement of Cash Flows to    There will be 
2016-2     to           2017                      require entities preparing financial                        no 
           Australian                             statements in accordance with Tier 1 reporting              significant 
           Accounting                             requirements to provide disclosures that enable             impact on the 
           Standards -                            users of financial statements to evaluate changes in        Group's 
           Disclosure                             liabilities arising from financing activities,              results on 
           Initiative:                            including both changes arising from cash flows and          the adoption 
           Amendments                             non-cash changes.                                           of this 
           to AASB                                                                                            standard. 
           107 
 

There are no other standards that are not yet effective and that would be expected to have a material impact on Range in the current or future period and on foreseeable future transactions.

Note 39: Company details

The registered office of the company is:

Ground Floor, BGC Centre

28 The Esplanade

Perth WA 6000

Australia

Telephone: +61 8 6205 3012

   Facsimile:   +61 8 6316 2211 

The principal place of business is:

Ground Floor, BGC Centre

28 The Esplanade

Perth WA 6000

Australia

Telephone: +61 8 6205 3012

   Facsimile:   +61 8 6316 2211 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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