Range Resources signs deal in Somalia

[General Duke]

Range Resources signs deal in Somalia

 

Tuesday January 23, 2007, 1:45 pm

 

Oil and gas explorer Range Resources Ltd is proceeding with a $US50 million farm-in deal and plans to list in the UK after signing a production sharing agreement with the government of Puntland, a semi-autonomous state in Somalia.

 

The production sharing agreement (ASX: PSA.ax) with the Puntland government was signed by Range Resources and Canmex Minerals Corporation, which is listed in Canada and has taken up the farm-in deal.

 

The PSA relates to two main exploration areas, the Nogal and Dharoor Valleys, and as part of its 80 per cent farm-in Canmex will conduct an exploration work program over two three-year periods.

 

Range Resources managing director Mike Povey said the deals are significant milestones for the company.

 

"Since Range's first involvement, the company has been aware that in order to explore successfully for hydrocarbons in Puntland, it required a joint venture partner with a strong technical team, solid financial backing and preferably experience in the region," he said.

 

"In Canmex and the personnel involved with the company I believe we have found an ideal partner to aggressively progress the exploration effort."

 

Range Resources has appointed a broker to proceed with its planned listing on the London Stock Exchange's Alternative Investment Market, which will see it conduct a $US20 million institutional placement.

[General Duke]

Jan 2, 2007 5:34:00 PM MST

 

Canmex says Puntland parliament has approved production sharing agreement (Canmex-Minerals)

 

VANCOUVER (CP) _ Canmex Minerals Corp. (TSXV:CXM) said Tuesday a production-sharing agreement between Canmex, Range Resources Ltd. and the Puntland government has been unanimously approved by the Puntland parliament in Africa.

 

Canmex announced in October it planned to acquire an interest in licences covering the Nogal and Darin basins in Puntland, a semiautonomous region in northern Somalia.

 

The basins “are considered world-class exploration plays with a petroleum system geologically similar to and formerly contiguous with those within the Republic of Yemen,‘‘ Canmex said in a release.

 

The current conflict in southern Somalia has not affected Canmex‘s activities in Puntland to date, the company added.

 

Under the memorandum of understanding, Canmex can acquire an 80 per cent interest in the licences and become the operator by paying US$50 million in exploration expenditures over four years and Range Resources US$3.5 million once commercial production begins.

 

The deal is conditional upon the successful completion of due diligence by Canmex, the finalization of definitive agreements, and all government, regulatory and other consents, including those required in Puntland and the Somali Republic.

 

b][“With the production-sharing agreement now approved by the Puntland parliament, Canmex and Range expect to finalize their joint venture arrangements in the near future,‘‘[/b] Canmex said in a release.

 

Government forces in southern Somalia, backed by Ethiopian troops, have been pursuing the remnants of the Islamic militia that until two weeks ago controlled most of southern Somalia and threatened to drive out the interim government.

 

The interim administration, set up with UN help amid chaos in Somalia in 2004, had been largely ignored until the Islamic militia defeated secular warlords and took over the capital, Mogadishu, last summer.

 

Prior to Canmex‘s release, its share dropped 10 per cent, or 45 cents, to close at $4 on the Toronto Stock Exchange.

 

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