AIM-listed oil and gas group Range Resources has bought a 'strategic stake' in Latin America-focused Citation Resources, giving it exposure to two highly prospective blocks in Guatemala.

"The strategic stake allows Range to obtain non-operating exposure to known reserves with significant upside potential with a similar owner/operator project to Range's Trinidad operations," the company said on Friday morning.

The Guatemalan blocks have proved plus probable reserve estimates (2P) of 2.3m barrels of oil "with significant exploration upside potential", according to Range.

Citation holds a farm-in right to acquire a 70% interest in Latin American Resources (LAR), which holds an 80-100% stake in the two blocks. Range is acquiring a 19.9% interest in Citation for around $2.0m but is spending a further $2.0m on a direct 10% equity stake in LAR.

"The acquisition of the interest in Guatemala through the strategic stake in Citation Resources and at project level further strengthens our portfolio of assets in the region that has yielded significant discoveries, yet remains relatively underexplored," said Executive Director Peter Landau.

"This acquisition is consistent with Range's strategy of acquiring low cost barrels in areas of strategic advantage. It provides Range with a unique opportunity to participate in near-term appraisal and development along with potential high impact exploration opportunities at minimal costs. We now look forward to the flow test results from the first well, and subsequent spudding of the second well."

Shares in Range jumped on Thursday after the company announced that it was making progress on the production of six wells in Trinidad.

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