Range Resources signs deal in Somalia

[N.O.R.F]

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.

 

http://au.biz.yahoo.com/070123/30/12c22.html

 

Any of our nomad economists to disect this for us?

[Taako Man]

Hopefully the money is not squandered in the hands of a few and benefit all the citizens of the state and too a lesser extent of Somalia.

[N.O.R.F]

What is the 80% deal about? 80 per cent farm-in?

[Taako Man]

Not really sure. Not fimiliar with Oil deals.

[NASSIR]

http://au.finance.yahoo.com/q/aks?s=PSA.AX

 

If you look at these stats,(financial disclosure) their earnings and cash flows are negative for the last 10 years. The Co. is not doing good. Their Beta is also higher than the Market indicates. Beta is the thing with which to measure the company's variability, its risk. So it indicates higher risk than the average market. Besides, the company has very low equity--enough money to ward off unfavorable circumstances.

 

I hope they make the best out of this deal and began dialogue, collobaration, and commitment to solving issues of resource management, and underwriting a legitimate contract that ensures the safety of the environment, reporting on the distribution of resources, and employment equity.

[Jamster]

This is an old news. Range is nothing but charlaton.

[art]

caamir, PSA is not involved in the deal.

[Centurion]

we need some proper information on the contract.

 

-When does this contract expire?

-What share does the Puntland government get of the production?

-Is their share fixed?

-Are there any clauses which Range can exploit?

 

This can be potentially very bad for Somalia, Range swindling the Puntland government, and government officials syphoning large amounts of the profits into their own pockets.

 

i'd advise the Puntland government to hire (if they can, its not cheap) a petrol revenue management oganisation, a third party which can ensure Range isn't exploiting Puntland, and which can bring some transparency to the governments management of potential petrol profits.

[Juje]

They talk about Oil and Gas exploration and the say $US50 million. It shows they are shambs and fakes. Range is no exploration company at all. The only deal they make with Puntland State is dumping of wastes, especial nuclear and other hazardous waste in the region. This enriches them and the Puntland heads and money makers.

It is an oppen secret that thanx to Range Puntland state within the next 20-25 years Puntland region will be inhabitable by humans thanx to Range iyo madaxda Puntland State who made the place 'qashin-qubka' sunta adunka oo dhan.

Oil and Gas exploration...by Range....give me another one.

[Jamster]

Juje! yes; we will all have to move to Waamo. I will welcome Puntland folk to come and farm the beautiful land that is Waamo.

 

Puntland, the land that was!!

[General Duke]

^^^Comedians I say, the deal is to exlplore an area that was marked out by Conoco in the late 80s. Its a stight forward deal. Range does not deal with toxic waste it is a legitimate company. Listed on the australian stock exchange. Here is its website.

 

Also the news is from yesterday and is not dated.

 

website

[Jamster]

Gen Duke! that was intended as sarcasm!

[General Duke]

^^^It was a poor form of sarcasm.

[General Duke]

Canmex Announces Formal Signing of Production Sharing Agreement in Puntland, Somalia

 

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2007) - Canmex Minerals Corporation ("Canmex" or "the Company") (TSX VENTURE:CXM) is pleased to announce the formal signing of the Puntland Production Sharing Agreement ("PSA") between the Government of Puntland, Range Resources Limited ("Range") and Canmex.

 

The agreements cover highly prospective basins in the Nogal and Dharoor Valleys in the state of Puntland in northern Somalia. The Nogal and Dharoor basins are considered world-class exploration plays with a petroleum system geologically similar to and formerly contiguous with those within the Republic of Yemen.

 

Pursuant to a Memorandum of Understanding signed between Canmex and Range, Canmex has the right to acquire an 80% interest in the licenses and operatorship of the Nogal and Dharoor projects in consideration for the financial commitment over a six year period of US$50 million in exploration expenditures and the payment to Range of an additional US$3.5 million upon commencement of commercial production.

 

A comprehensive exploration work program is proposed in respect of each exploration area, which will include:

 

a) Geological fieldwork;

 

b) Acquisition of surface high resolution geochemical surveys;

 

c) Reprocessing of prior 2D seismic (up to an aggregate of 1,000 line km);

 

d) Review and integration of all geophysical and geological data; and

 

e) Drilling of four exploratory wells (over the first (minimum two) and second exploration periods for both areas).

 

The PSA signing was attended by His Excellency, Puntland President Hersi, Director General of the Puntland Energy and Mineral Resource Agency, Hassan Mohamoud, Range executives and Canmex President and CEO Richard Schmitt.

 

His Excellency President Hersi commented, "Range and Puntland have been working together in the past few years and I am very happy with that, Canmex has worked with Range and I am very happy with the deal. I honestly believe our country is rich in natural resources and it requires people to do the work. The big oil companies were previously all exploring in my country 20 years ago when I was the Governor of the area and believe an oil discovery was near. I have heard good things about Canmex and the people involved and I look forward to the commencement of work as soon as possible. Puntland has always been secure and it looks like the other parts of the country are now settling down. I am sure that you (Range and Canmex) will succeed."

 

Rick Schmitt, President of Canmex, commented, "We very much look forward to working in the State of Puntland for years to come and greatly appreciate the warm, professional hospitality extended to us. The signing of the PSA represents the passing of a major milestone towards beginning our work program on these truly world-class exploration assets and we look forward to great success."

 

Range Resources Managing Director Mike Povey commented, "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. In Canmex and the personnel involved with the company I believe we have found an ideal partner to aggressively progress the exploration effort. The signing of the Production Sharing Agreement marks the beginning of a partnership between the Puntland Government, Range and Canmex. I am pleased that the joint venture negotiations have progressed rapidly and resulted in an agreement that all parties are happy with and that the exploration commitment made by Canmex hopefully will result in the discovery of large commercial quantities of oil that can be developed for the benefit of the Somali people. I and the rest of the Board look forward to working with Canmex and extending our relationship with them and the Puntland Government in what should be a very exciting time over the next few years."

 

The foregoing transactions are subject to a number of conditions including negotiation and finalization of definitive binding agreements between Canmex and Range, including a Joint Operating Agreement and binding agreements among Canmex and Range and the Ministry of Energy of Puntland and all requisite regulatory approvals.

 

In respect of the conflict in southern Somalia, the Company is closely monitoring events but at this stage, can advise that the hostilities have not affected to date the Company's activities in the state of Puntland located in northern Somalia.

 

Forward-looking statements: This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as political risk, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management's capacity to execute and implement its future plans. Actual results may differ materially from those projected by management.

 

ON BEHALF OF THE BOARD

 

Rick Schmitt, Director

[SomaliThinker]

Question for you General Duke, lets say Oil is found in Puntland who gets the bulk of the money your state or the TFG, or will you have system being done in Iraq were the oil wealth is distrabuted evenly throughout all of somalia, cause in talking to some puntlanders they tell me the bulk of the money will go to them and little left over will go to the other regions.