Rango Energy Inc.

Rango Energy Inc.

January 17, 2014 09:00 ET

Rango Energy Signs Definitive Agreement with INNEX California Inc.

Deal Includes the Innex California Inc Oil and Gas Projects Covering Approximately 40,000 Gross Acres of Projects focused in California's Prolific San Joaquin, Ventura, and Eel River Basins and Oklahoma Oil And Gas Leases; Projects include joint ventures with Occidental Petroleum and Hess Corp.

DALLAS, TEXAS--(Marketwired - Jan. 17, 2014) - Rango Energy, Inc. (OTCBB:RAGO) ("Rango Energy" or "the Company"), an oil and gas exploration and development company, announced today that it has signed a definitive Joint Venture, Operating and Acquisition Agreement with INNEX California, Inc., a Dallas-based energy company with oil and gas leases covering approximately 40,000 gross acres in the San Joaquin, Ventura, and Eel River Basins in California and an additional project in Oklahoma. INNEX is the originator of most of these ongoing projects and has retained from 10% to 100% ownership. All projects have significant oil, condensate, and gas potential.

Highlights of the INNEX portfolio include:

  • Joint development of approximately 10,000 acres of the Kreyenhagen Formation in San Joaquin Valley with partners including Occidental Petroleum.

  • Joint development of approximately 35,000 acres of the San Joaquin Basin with Hess Corporation.

  • Joint Development of 2,300 acres with PUD and Potential oil and gas reserves in the South Goodwin Field in Oklahoma with partners Mewbourne and Chesapeake.

Under the terms of the agreement, Rango will have the right to fund and earn a full 50% working interest in nearly all of the entire INNEX oil and gas portfolio. Rango will fund each well at 100% of the AFE costs submitted by INNEX or to INNEX by its Partners and will receive 75% of cash flows from each well up and until they recoup 125% of the AFE, at which time cash flow will revert to 50%. After three wells are drilled at each specific target zone, Rango and Innex will go heads up on all future drilling.

Rango will contract INNEX's expert and experienced staff to execute all technical work and INNEX will be the operator of the projects, except where INNEX is partnered with another company. Currently, within the INNEX portfolio is an approximate 35,000 acre group of leases in the San Joaquin Valley that is being developed in partnership with Hess Corp. and a project at the Kettleman Middle Dome partnered with Occidental Petroleum. Under the terms of the Joint Venture agreement with INNEX, Rango will have the ability to fund and earn 50% of the INNEX position in the projects with these majors.

In developing the INNEX portfolio, the INNEX - Rango 2014 work program will focus on attaining near term production by initially drilling low risk offset wells in Oklahoma and Kettleman Middle Dome where discovery wells are currently producing.

In the first two years of the agreement, Rango will have the ability to acquire 100% of INNEX California Inc., terms dependent on the results of the initial work program.

Specifically excluded from the transaction are certain targets zones at Kettleman Middle Dome, Elk Hills and South Tapo Canyon. INNEX is currently under contract with another company on these prospects, but they will be folded into the INNEX - Rango deal if and when they become available.

Said Rango CEO Robert R. Harrell, "We believe INNEX's remarkable land portfolio, partnerships, and the prospect for near term production will create significant value for Rango shareholders. The management team at INNEX are all world-class geoscientists with an tremendous array of experience including target generation, exploration and production. And with this agreement, we have the ability to earn a full 50% working interest in the INNEX portfolio with the option to acquire the entire company once we have reached a critical level of production. After a review of the science and analyzing the entire portfolio, there appears to be the potential of tens of millions of BOE in the PUDs. We expect to be able to provide an update for the first drill program in the near future."

Mr. Harrell concluded, "We will be providing a detailed review of the prospects in the portfolio for our shareholders in the near future and plan on formally presenting our plan on a conference call and on-line presentation in the coming weeks."

About Rango Energy

Rango Energy, Inc. is an exploration stage oil and gas company with a strategy to identify, evaluate, explore, and develop new opportunities for oil and natural gas production across North America.

Safe Harbor Statements

Certain information contained in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates", "intends" or "believes", or that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", or "be achieved".

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the SEC. Such risks and other factors include, among others, the ability to locate and acquire suitable interests in oil and gas properties on terms acceptable to the Company, the availability of financing on acceptable terms, accidents, labor disputes, acts of God and other risks of the oil and gas industry including, without limitation, risk of liability under environmental protection legislation, delays in obtaining governmental approvals or permits, title disputes or claims limitations on insurance coverage. The Company believes that the expectations reflected in the forward-looking statements included in this news release are reasonable; however, no assurance can be given that these expectations will prove to be correct, and such forward-looking statements should not be unduly relied upon. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

Contact Information