Puntland: Range activities deal with Korean Multinational

[General Duke]

Here are some interesting information I found browsing on the net... Mostly from the web page of the company.

 

Range presentation on Puntland

 

This page has articles written in Somali..

Range resources,..

[General Duke]

Range in farm-in agreement for Somali oil and minerals

 

21-April-06 by Edited announcement

 

 

Broad-based resources company Range Resources has entered into a significant farm-in agreement with the Korea National Oil Corporation in the Puntland area of Somalia.

 

The 75 per cent farm in arrangement includes a $13.43 million sign on fee, and minimum exploration of around $33.25 million over two years for KNOC to acquire 75 per cent of the area.

 

The company believes the agreement will be a significant step towards its goal of attracting international partners to assist Range in the exploration and development of Puntland's mineral and hydrocarbon assets.

 

The agreement is subject to due diligence and a formal agreement.

 

In the event of KNOC proceeding, Range would hold the residual 25 per cent interest, with 12.5 per cent then being taken up by its joint venture partner Consort Private Ltd.

 

Range Resources Australian projects are based around three sites in south west Western Australia, at Donny brook, and Calyerup Creek and Forrestania further to the east.

[General Duke]

THE FULL MEDIA RELEASE APPEARS BELOW.

 

KOREA NATIONAL OIL CORPORATION LETTER OF INTENT

 

As referred to in the ASX Announcement dated 20 April 2006, the Company is pleased to announce that it has entered into a letter of intent with the Korea National Oil Corporation ("KNOC") in respect of a 75% farm in to a concession area in the Noogal Area comprising a portion of the former Blocks 28 and 29 following key meetings held in the middle east last week. Key terms of the letter of intent include:

- US$10m sign on fee;

- Minimum exploration of US$25m over 2 years to earn 75% of the area; and

- 45 day formal due diligence period with the letter of intent and subsequent formal agreement to become legally binding upon a decision to proceed.

 

In the event of KNOC proceeding Range would hold the residual 25% (contributing interest following minimum spend) interest with the acquisition of the 12.5% interest from the Company's joint venture partner Consort Private Limited for an agreed formula based on the farm in terms.

 

The Board believes that the letter of intent is a significant step as the Company moves towards attracting a number of key international partners in assisting it with the exploration and development of Puntland's mineral and hydrocarbon assets.

Range looks forward to updating shareholders on key activities in Puntland.

[codetalker]

the Company is pleased to announce that it has entered into a letter of intent with the Korea National Oil Corporation ("KNOC") in respect of a 75% farm in to a concession area in the

Noogal Area

As the famous saying goes: Ciyaar waa galin danbe.

[General Duke]

^^^ What an absurd adage to use at this time.

I belive this is a great deal for Puntland, if there is no oil, then we have lost no money as the companies involved are paying the sums required for expolration. If there is oil and close to the 500million barrels mark then it will be agod send for the whole of the Somali race..

 

So codetalker, advantage to Puntland state.

Your hope for a clan war will not come about, insha Allah, things will continue at they rate they are going..

 

I like the compariosn they[range] made with Yeman, 25 years ago it was a divided country between a pro western and communist camps then a small company prospected for oil and today it is producing a good deal of Oil. So why not Puntland, unless you and others can raise the $$$$ needed to prospect the oil.

[art]

General, I also believe that once a JV arrangement will be finalised there would be a an arrangement for the puntland authorities to receive a royalty from production.

[General Duke]

^^^ If there is oil that is. So Art, what gives Raange confidance that there is Oil/Gas in Puntland???

[art]

General Duke, like any exploration company, until they drop a drill into the ground and see the black stuff come out there is no guarantee. But range has acquired geological surveys and reports which indicate the presence of oil.

 

If you would like I can go into detail here.

[General Duke]

^^^ By all means do..