Range Resources drops on discounted share issue

Range Resources fell back on Tuesday morning in active trading after announcing a share placing at a deep discount to Monday night's closing price.The company has placed 18.3m new shares at 11.5 cents per share. The close yesterday was 13.25p. After taking account of the exchange rate, the discount works out at around 56%. The shares fell as low as 10.5p in the opening 90 minutes of trading, before recovering a little.A further 20.89m shares may be issued on the exercise of an option at 18.98 cents by September 20 2016.Range also told investors today drilling has started ("spudding" in industry parlance) on the first well in its oil exploration project in the Dharoor Valley in Somalia. The company claims this is the first drilling in the country for 20 years.Range says the estimated resources amount to 300 million barrels of oil, with its own interest in the project at 20%.Range's Executive Director, Peter Landau, described the drilling as a "monumental achievement".Shares in the firm are up 21% on where they were this time last year, after a roller-coaster ride which saw the stock gain 150% in April before falling dramatically in the summer. BS