Range resources on Somali oil hunt [go Puntland]

[Sophist]

Art, the contractual agreements between Puntland and Range is confined to hard commodities. Oil and Gas isn't in their sphere matey.

[me]

Originally posted by Cambarro:

Salaam

I only became interested since the Courts transformed Mogadishu. But this aint about politics but a hunger to have a home country to return to and eventually to live. Lets face it, muslim are having hard time in the west. Things will only get worse here. So before it does, i pray to Almighty that we have somewhere safe to call home.

 

Mind you, i can bet on political issues without having a politician for a husband (if betting wasnt haraam).

I feel you Cambaro. You are right. Same here, wejst want our country back. It isn't too much to ask for is it?

 

About the oil and minerals issue, its a curse not a blessing. Waa laysku dilayaa waana nala dhacayaa. In waxan hada la bilaabo maaha, waa in aan sugnaa dowlad nadiifa.

[Sophist]

Me: I am going to Nugaal hada! waaba sidii aan warlord ku noqon lahaa.

[me]

lol@sophist can I join? You be Caydiid, I will settle for Cismaan Caato.

 

These deals are not good for the people. Si xun ayaa laysu dili doonaa. In kuwan xukuma PL dadka laga qabto weeye.

 

Hmmmmmm to be honest of all the warlords, Cismaan Caato seems to be the smartest. Am I the only one thats of this opinion?

[Sophist]

Me! You are smart man. Laakiin, walaahi waa quraafaad. Angola government waxaa la siixey 9 boqol iyo labo iyo konton milyan oo doolar upon signiture iyadoon la ogeyn waxa dhulka kujira. Marka wadanka in lakhiyaamo ma aha. Walee waan sii socdaa.

[Che -Guevara]

Originally posted by me:

pray to Almighty that we have somewhere safe to call home.

I feel you Cambaro. You are right. Same here, wejst want our country back. It isn't too much to ask for is it?

War Hadal badane haan buuxiyeey. That offer still on the table. We can take out the warmongers. This thing below has your name written all over.

 

[me]

Dadka waa la khayaameenayaa. Dagaalo xunina wey dhacayaan. Meeshani ma aha Angola ama Pagua New Guniea. Shirkadahani ma oga dadka meesha daga cidee yihiin. Kuwan meesha iska saxiixayana waa in wa laga qabtaa. General Duke iyo dadki sidiisa ah hadii ay ka toobad keeni waayan tuuga nimadan waa in meesha lagu kala tagaa. General Duke kii tuug difaacaa isba waa tuug.

 

Sophist when you go back don't stop posting here. I need a way to contact you when I get there.

 

Now I really hope TFG doesnt win this war.

[me]

Its on the table waryaa.

 

 

I already got my shopping list.

 

 

Milkor MGL

AGS-17

AKMS Carbine

tigr

GEPARD M-4

Denel NTW-20

AS 'Val' SAR

M107

VSS "Vintorez"

[Taleexi]

Originally posted by Sophist:

Art, the contractual agreements between Puntland and Range is confined to hard commodities. Oil and Gas isn't in their sphere matey.

Sure Sophist, considerations of this contractual agreement are what matters most. Moreover, to my knowledge there is none rational person objecting the development of the area but a handful of people including me are quesitiong the transparency of contracts of any sort.

[Taleexi]

Originally posted by me:

lol@sophist can I join? You be Caydiid, I will settle for Cismaan Caato.

 

These deals are not good for the people. Si xun ayaa laysu dili doonaa. In kuwan xukuma PL dadka laga qabto weeye.

 

Hmmmmmm to be honest of all the warlords, Cismaan Caato seems to be the smartest. Am I the only one thats of this opinion?

I said the game is on

[Sophist]

An expert in Energy sector said to me when he read the deal between Range and Ade Muse " imagine finding 1 million dollars and then selling it for 5 cents" This is how redicilious the whole thing is.

[me]

^^Is this deal legal? Can we fight it in court?

[Sophist]

Actually, if Puntland and TFG want to heed the advice of the experts (they are now being contacted by Swiss based energy advisory Group) the they are in a possition to declare null and void as the agreement was agreement of services but not that of profit sharing. We shall see what comes out of it.

[me]

Australian resources explorer Range Resources has signed a $67.50 million deal with Canadian-based Canmex Minerals to help it look for oil in Somalia.

 

Canmex will be the operator of the exploration, which is located in the northeastern state of Puntland, and has to complete a minimum of four exploration wells to secure an 80 per cent stake in the project.

 

A production sharing agreement is expected to be finalised between Range, Canmex and the Puntland government by the end of next month.

 

Melbourne-based Range is exploring for oil, gas, nickel and uranium in Western Australia, Peru and Puntland.

 

Shares in Range gained 0.3 of a cent to 3.2 cents by 1329 AEST.

 

 

 

 

 

The full text of a company announcement is pasted below

 

MAJOR MOU SIGNED TO FARM US$50M INTO PUNTLAND

The Board of Range Resources Limited is pleased to announced that it has signed a non-binding Memorandum of Understanding with a subsidiary of Canmex Minerals Corporation in relation to an 80% farm in right in the Nogal Basin and Darin Basin Blocks.

 

The Yemeni basins, after 20 years of exploration and development drilling, are known to contain in excess of nine billion barrels of oil equivalent reserves with current production of over 400,000 barrels of oil per day. Most production has been from Lower Cretaceous Qishn sandstone reservoirs sourced by Upper Jurassic Madbi Shales. In Yemen, between 1994 and 2006, there was an average discovery size of 96 MMBOE recoverable reserves with a discovery success rate of 23%.

 

 

In order to achieve its strategic vision of finding and delineating the vast oil potential of Puntland, the Company has sought the assistance of a Joint Venture partner with the technical and financial capability to undertake this task. Range believes that Canmex

meets these criteria, and, combined with its strong understanding of Northern Somalia and Yemen, will be successful explorers and operators.

 

CANMEX

Canmex is a subsidiary of Canmex Minerals Corporation, a Vancouver based company listed on the Toronoto Stock Exchange. The Board and management of Canmex have been involved in exploration, development and production operations in a number of the major oil and gas provinces of the world including the Middle East, Papua New Guinea, Malaysia, Vietnam, United Kingdom, Libya, Sudan, Albania, Somalia and Russia. Canmex have demonstrated to the Board that they have the financial capability and a strong technical team to undertake the exploration and operator functions.

 

Heading up Canmex's exploration effort in Puntland will be Rick Schmitt. Rick is a Petroleum Geologist with 29 years of diverse international experience in most of the world's major petroleum provinces. His expertise includes exploration, exploitation, operations and new ventures as well as strategic planning and negotiations. Of particular relevance, Rick has worked extensively in the Horn of Africa and Yemen. Prior to joining Canmex he lived in Yemen for five years as President and General Manager of a major international oil company's Yemen operations. He had previously held senior positions with Nexen, notably as Vice President and GeneralManager of Australia/Indonesia and General Manager of International Exploration and Production. Rick is a UK graduate in Geological Sciences and is a Member of the American Association of Petroleum Geologists and the Canadian Society of ExplorationGeophysicists. His knowledge and experience of the Yemen oilfields will be invaluable in exploring the Puntland basins which are seen as analogous to the Yemen Basins. The Company looks forward to working with him and his group towards creating exploration

and drilling success in Puntland.

 

Key Terms of the MOU

The key terms of the MOU with Canmex are as follows:

a) Main conditions precedent of all necessary regulatory approvals (see Puntland Government and TFG sign off referred to below), final due diligence and formal documentation (a production sharing agreement between the Puntland Government, Range and Canmex is expected to be finalised in the next 4 weeks). Targeted completion date is 15 November with a drop dead date of 31

December 2006;

 

b) Canmex will be the Operator of the on shore oil and gas exploration effort with an obligation to spend US$50m to earn an 80% interest in the two main basin areas in Puntland (the Nogal and Darin Basins). The US$50m includes a minimum of 4 exploration wells to be completed (2 in each basin), a sign on bonus to be confirmed upon finalization. There is a further US$3.5m payment upon

commercial production. Range free carried until exploration moneys spent;

 

c) Of the Canmex 80% farm in right, 20% (in one or both basins) is available to farm out to third parties on terms to be agreed between Range and Canmex. Any sign on bonuses with third parties will be split 60% Range , 40% Canmex.

 

PUNTLAND AND TFG APPROVALS

Both the Puntland Government and the Transitional Federal Government of Somalia have provided Range and Canmex with their absolute support of the MOU, which is reinforced in official letters sent to both Companies;

 

"The Puntland Government is extremely encouraged by the continued exploration and development that Range is bringing to our state and the proposed farm in with Canmex is obviously another significant step forward. With over US$45m committed over the next few years, the Government believes that Range and Canmex have put together a partnership that will unlock the considerable hydrocarbon potential of Puntland and deliver the returns to all key stakeholders working together to bring Puntland back on to

the African stage.... the Puntland Government has reviewed the proposed commercial terms of the farm in joint venture with Canmex Minerals Corporation and in principle supports and approves all key aspects of the transaction."

 

Mohamud Hersi (CADE MUUSE) - President of Puntland State of Somalia.

 

"The Transitional Federal Government of Somalia in principle supports and fully endorses the activites of Range Resources Limited and Canmex Minerals Corporation. Further, the TFG acknowledges and agrees with the key terms of Range's Contract of Works and the Range/Canmex PSA agreement will be recognized and upheld within any national framework of mining petroleum legislation enacted as part of the Somali Unification Process which the TFG is involved in."

 

Abdullahi Yusuf Ahmed - President of the Transitional Federal Government of Somalia.

 

The Company looks forward to finalising the Canmex Partnership and unlocking the significant hydrocarbon potential of Puntland.

[Sophist]

Me: This really makes me livid! throwing away the resources of our country like this. This Canmex Minerals is a minning company has nothing to do with Oil; I will speak to a canadian friend of mine of is securities lawyer and perhaps a file a request about info on this.

 

This is outrage.