Printer Friendly

RANGER OIL LTD. ASSESSES PROPOSED U.K. TAX CHANGES

 CALGARY, Alberta, March 17 /PRNewswire/ -- On March 16 the Chancellor of the Exchequer in the United Kingdom announced proposed changes to the Petroleum Revenue Tax ("PRT") that will affect Ranger Oil Ltd.'s (NYSE: RGO; Toronto, Montreal: RGO) operations in the North Sea. The significant proposed changes are as follows:
 (1) To reduce the rate of PRT which is charged on current oil and gas production from 75 percent to 50 percent effective July 1, 1993;
 (2) To abolish PRT on oil and gas fields given development consent on or after March 16, 1993; and
 (3) To abolish, subject to transitional arrangements, the allowance of expenditure on new exploration and development against profits of existing fields after March 16, 1993.
 These changes reduce the rate at which PRT is payable on the Ninian field (interest 11.5 percent) from 75 percent to 50 percent on July 1, 1993. In addition, the potential Columba field development (interest 40 percent) which is within the Ninian PRT ring fence will benefit from such a change.
 The proposed abolition of PRT for new fields will enhance the economic return from such future developments as Forth, Pierce, Franklin and discoveries on blocks 22/22b, 22/27a and 29/2a.
 In 1992, the company received U.S. $33 million of PRT repayments and associated interest refunds as a result of carrying back, to previous years, allowances rising from exploration and appraisal expenditures incurred during the year. The company had expected a similar level of refund during 1993, on the basis of its planned exploration and appraisal program. However, under the proposed PRT changes, the company would not recover any PRT and interest in 1993 or subsequent years.
 The company will need time to assess fully the implications of the proposals and is now reviewing its North Sea activities planned for 1993 and subsequent years. Indications are that Ranger's appraisal and development program for current discoveries will proceed as planned. However, it is expected that North Sea exploration activity will be curtailed.
 In the last two years the company has diversified its exploration program into Angola, Namibia and Algeria, and placed increased emphasis on exploration in Canada. As a result of this diversification, two thirds of the company's wildcat exploration programme in 1993 was planned to be carried on outside the North Sea.
 -0- 3/17/93
 /CONTACT: J.G. Faulds, VP, Investor Relations of Ranger Oil Ltd., 403-232-5200/
 (RGO)


CO: Ranger Oil Ltd. ST: Alberta IN: OIL SU:

JB -- LA014 -- 6974 03/17/93 10:56 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 17, 1993
Words:421
Previous Article:McDONNELL DOUGLAS COMPLETES SALE OF
Next Article:MINNESOTA DAIRIES LAUNCH EMERGENCY CAMPAIGN TO CHANGE 'DEVASTATING' MILK PRICE LAWS -- TRUCKS FORCED TO LEAVE FOR OUT-OF-STATE DAIRY FARMS
Topics:


Related Articles
RANGER OIL ANNOUNCES SUCCESSFUL PRODUCTION TESTING OF U.K. BLOCK 23/27 TO BE CALLED THE PIERCE FIELD
RANGER OIL LTD. REPORTS STAFFA NORTH SEA FIELD DEVELOPMENT
RANGER OIL LTD. ANNOUNCES RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 1992
RANGER OIL LTD. REPORTS RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 1992
RANGER OIL (U.K) LTD. PLUGS WELL 29/4b-3
RANGER OIL LTD. REPORTS RESULTS FOR THE NINE MONTHS ENDED SEPT. 30, 1992
RANGER OIL LTD. REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 1993
RANGER OIL LTD. REPORTS RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 1993
RANGER OIL ANNOUNCES RESULTS OF SUCCESSFUL APPRAISAL WELL
RANGER OIL LTD.'S APPOINTMENT OF NEW DIRECTORS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters