Range Resources has escaped having to pay a $US53 million ($68.3 million) bill that Colombia’s National Hydrocarbons Agency alleged the oil and gas explorer owed.

Range (ASX:RRS) says it has reached an agreement with the agency to settle all outstanding claims and disputes between the agency, Optima Oil Corp and the company.

In January 2016, the National Hydrocarbons Agency revoked licences over three exploration blocks in Colombia that were awarded to Optima Oil and Range in December 2012.

Range says the agency alleged the pair did not fulfil their exploration commitments and presented invalid letters of credit.

> Bookmark this link for small cap breaking news
> Discuss small cap news in our Facebook group
Follow us on Facebook or Twitter
Subscribe to our daily newsletter

The company disputed the claim and over the past 18 months has been working with its legal advisors, Optima Oil, and the National Hydrocarbons Agency to resolve the disagreement.

Range says the agency has now confirmed that Range and Optima Oil are not liable for debt and the two companies have agreed to the termination of the three exploration licences.

The company now has no “material assets” in Colombia and is closing its office in the South American country.