Puntland Oil News Update

[Cowke]

Old Park Lane Capital sees plenty of potential at Range Resources

 

 

Old Park Lane Capital has initiated coverage of Range Resources (ASX: RRS, AIM: RRL), praising its “highly attractive spread of exposure” to frontier exploration and stating that the value of just one of its wells alone underpinned the current market value of the company, which could develop into a major player in the E&P (exploration and production) sector.

 

 

The broker said that the exposure to frontier exploration was balanced out by low risk assets that were already in production, while the “transformation” of the company could be delivered by its projects in the Puntland region of Somalia, where Range holds a 20% working interest in two PSAs (production sharing agreements) in the Dharoor and Nugaal onshore basins. The interest in Dharoor is contributing, while the interest in Nugaal is carried for about US$16 million.

 

 

Old Park Lane expects the first exploration well in Puntland to be spudded before the end of the current year and the second well in early 2011, providing Range Resources with exposure to multi-billion barrel prospects.

 

 

The company’s 25% interest Smith #1 discovery well on the North Chapman Ranch Project in Texas has commenced production at what the broker said were “impressive rates,” stating that just this well underpinned Range Resources’ current market value with additional upside offered by the success of the currently drilled Russell Bevly #1 appraisal well at North Chapman, which has recently reached a depth of 6,425 feet. Russel Bevly is located just 570 metres north-northwest of the Smith #1 well.

 

 

Following on from the recently released Independent Reserves and Valuations Report, the company anticipates that the well will provide valuable information regarding the size and geometry of the reservoir and move additional reserves into the Proved Producing category.

 

 

Petroleum engineers Lonquist & Co LLC (Lonquist) have estimated the total gross commercially recoverable reserves (1P, 2P and 3P) of the North Chapman Ranch Field at 215 Bcf (billion cubic feet) of natural gas with 45 Bcf attributable to Range, 15.9 mmbbl (million barrels) of oil with 3.3 mmbbls attributable to Range and 15.9 mmbbl of natural gas liquids with 3.2 mmbbls attributable to Range, which holds a 20% interest in all subsequent wells to Smith #1.

 

 

The report has made an independent PW10 DCF valuation of Range’s net interest of US$226 million.

Should the company achieve positive results in Puntland, Old Park said it could transform into a major player in the sector.

 

 

Range Resources also has operations in the Republic of Georgia, expecting to “firm up several attractive drill targets” by Q3 and look for farm-in partners to fund future drilling. Range’s activities in Georgia included the completion of the heads of agreement with Strait Oil & Gas to complete Phase II of the PSA and subsequent approval form the Georgian government for the Geophysical Institute of Israel to commence the 2D seismic operation on both block VI1 and block VIb.

 

The seismic operation that started in November has proceeded well with over 150 km (kilometres) of seismic acquisition having been completed despite recent severe weather conditions with the completion of this operation expected to occur in the end of February to early March 2010.

 

 

Old Park concluded that in the best case resource estimate and “heavily discounted” risk parameters Rage’s interest in Puntland could be valued at 9.5 pence per share and the recoverable reserves in Texas at 3.3 pence per share.

[General Duke]

^^ You are getting scared the Lindhen Group of companies that is the parent company of Africa Oil is no joke. Though I like the way you drop names.

 

Puntland had oil, secessionist have Riyaale.

[Haatu]

Riyaale is a strongman, Faroole is not.

[General Duke]

Originally posted by Haatu:

Riyaale is a strongman, Faroole is not.

Riyaale is a Mugger of the SNM clan, Faroole has good relations and respect for that clan. Nothing strong about being a bully lad.

Oh I forgot you came down with the anti Puntland virus that was going around.

[Haatu]

^ War stop calling everything anti Puntland. I've got nothing against P/land. It's just Faroole. I don't like him personally.

 

Besides, Riyaale is doing a fantastic job in keeping the nation one, don't you think?

[General Duke]

^^^I agree, Riyaale is doing a great job Mugging the secessionists.

[Haatu]

^ Dee don't blow our spy's cover

[FIDHIN]

Puntland have Faoroole and somaliland has Daahir dheere lol

[Hales]

Originally posted by Haatu:

^ War stop calling everything anti Puntland. I've got nothing against P/land. It's just Faroole. I don't like him personally.

 

Besides, Riyaale is doing a fantastic job in keeping the nation one, don't you think?

Why dont you like the guy personally Haatu, did you get into a fistfight with him while he was a taxi driver.

[Haatu]

^ The guy doesn't think I'm Somali. That's why I don't like him.

 

For the record, I've got nothing against taxi drivers. They're hard working people

[Gordon Gekko]

Originally posted by General Duke:

^^ You are getting scared the Lindhen Group of companies that is the parent company of Africa Oil is no joke. Though I like the way you drop names.

 

Puntland had oil, secessionist have Riyaale.

Small Correction: its the Lundin family that are the owners/backers of Africa Oil. The Lundins are serious players which have had a special interest for Somalia since ages (both Puntland and Somaliland actually) but they've sticked with Puntland since its under the auspices of the TFG and the best option in terms of the legal details that will sprout up along with the first oil-showers.

[Hales]

Haatu It must be your swahilli accent.

You would have nothing against 3/4 of the Minessota male Somali population that managed to get employed, masha allah.

[Paragon]

Originally posted by Gordon Gekko:

quote:Originally posted by General Duke:

^^ You are getting scared the Lindhen Group of companies that is the parent company of Africa Oil is no joke. Though I like the way you drop names.

 

Puntland had oil, secessionist have Riyaale.

Small Correction

: its the Lundin family that are the owners/backers of Africa Oil. The Lundins are serious players which have had a special interest for Somalia since ages (both Puntland and Somaliland actually) but they've sticked with Puntland since its under the auspices of the TFG and the best option in terms of the legal details that will sprout up along with the first oil-showers.

Indeed, G. Somaliland is currently in a legal limbo of some sorts. What a shame.

 

Advice to SL: rejoin and regain!

[Mr. Somalia]

Originally posted by Mr.Paragon:

 

 

Indeed, G. Somaliland is currently in a legal limbo of some sorts. What a shame.

 

Advice to SL: rejoin and regain!

"Rejoin"?? "Rejoin" WHAT? As if they ever left ... Remember this whole Marfashland brouhaha is nothing but a figment of their marqaan incapacitated imagination.

 

No one in the world has recognized this foolishness. In fact-- irregardless of what the loud cretins on SOL, who support this silliness would want us to believe in here-- a great majority of the Somali people of Waqooyi Galbeed are against this nonsense; but because their isn't YET, a strong national government in Xamar, with which to coalesce around, they choose to --justifiably-- bid their time and not politically stir the pot unnecessarily up north, over this issue. And besides, most of them are practically hostages to the dictatorial whims and political muggings of Riyaale( ). Therefore, they are helpless for now. But God willing, once Xamar gets its act together, hal farr baa loogu yeeri doonaa, you just watch! :cool:

[Mr. Somalia]

^

 

Your perpetual state of deflection and marqaan mental incapacitation is duly noted...again!

 

Oodka, when you find yourself cool, calm, and collected, take the opportunity to assassinate the deranged Flatulists in your head, who have fooled you into believing such a thing as a "de-facto" state existing in NW Somalia.

 

But then again-- as you were, old man! :cool: