Puntland Preparations for Historic and Highly Perspective well to be drilled by Horn Petroleum Corp.

[Fiqikhayre]

RANGE RESOURCES LTD - Puntland Drilling Update

 

Thursday, August 04, 2011 6:11 AM

 

 

 

 

Range Resources Ltd

ABN 88 002 522 009

www.rangeresources.com.au

4 August 2011

 

 

PUNTLAND DRILLING UPDATE

 

* Puntland Government and Africa Oil Corp. agree to adjust specific milestone

target dates.

 

* Contracts for a drilling rig and third party services are in advanced

stages of negotiations with contract execution scheduled for early August.

 

* Drilling of two wells now scheduled to occur in Q4, 2011.

 

International oil and gas exploration, development and production company, Range Resources Limited ("Range" or "the Company") is pleased to announce that its Puntland Joint Venture partner and operator, Africa Oil Corp ("Africa Oil"), through its newly created company Horn Petroleum Corp. ("Horn Petroleum") is currently in final preparations to commence the historic and highly prospective two well drilling campaign in the Dharoor Valley Block in Puntland, with the first well scheduled to spud early in the fourth quarter of 2011.

 

The drilling locations have been selected over two robust prospects and each well is targeting gross best estimate prospective resources of 300 million barrels and 375 million barrels recoverable for the two prospects (with net attributable prospective resources to Range of 60 million barrels and 75 million barrels respectively). Contracts for the drilling rig and third party services are in advanced stages of negotiation and are expected to be executed in early August.

 

The Puntland Government and Dharoor Valley communities are fully supportive of the drilling project and have ensured they will do all necessary to allow the project to move forward safely and expeditiously. Specific milestone target dates have been adjusted by the Puntland Government allowing the Company and partners to move the drilling start-up to the fourth quarter of 2011. In addition, partial relinquishments in both the Dharoor Valley and Nugaal Valley agreements have been finalized and approved.

 

Range Resources Executive Director, Peter Landau commented, "We are delighted that JV partner and Puntland operator, Africa Oil Corp., along with the Puntland Government have settled on mutually agreeable terms that will finally see a well(s) drilled in Puntland, Somalia this year.

[Fiqikhayre]

CNBC through Reuters

 

BRIEF-Red Emperor says will start Puntland drilling in Q4

Published: Thursday, 4 Aug 2011 |

 

LONDON, Aug 4 (Reuters) - Red Emperor Resources NL: * Contracts for a drilling rig and third party services are in advanced stages of negotiations * Drilling of two wells in Puntland to commence in Q4, 2011

[Fiqikhayre]

Puntland-Somalia

 

Dharoor and Nugaal Valley Blocks

 

The Company and Denovo Capital Corp. ("Denovo") have entered into a letter of intent dated May 11, 2011 for the creation of a new Puntland focused oil exploration company to be named Horn Petroleum Corp. ("Horn Petroleum"). Horn Petroleum will be created as a result of the sale, to Denovo, of the subsidiaries of the Company that hold its oil and gas properties in Puntland Somalia. Certain management and technical services are expected to be provided to Horn Petroleum by the Company under a service contract.

 

On August 2, 2011 Horn Petroleum completed a $40.98 million private placement financing, with assistance from Africa Oil. These proceeds will be used to fund Horn Petroleum's share of costs associated with the drilling of two exploratory wells in the Dharoor Valley Block. Africa Oil subscribed for $10 million of the private placement and will have an approximately 50% interest in Horn Petroleum when the transaction completes. Completion of the acquisition of Africa Oil's interest in Puntland, Somalia by Horn Petroleum remains subject to, amongst other things, TSX Venture Exchange approval.

 

The Company is currently in final preparations to commence the two well drilling campaign in the Dharoor Valley Block, with the first well planned to spud in the fourth quarter of 2011. Drilling locations have been selected over two robust prospects targeting gross best estimated prospective resources of over 300 million barrels each based on internal estimates. Contracts for a drilling rig and third party services are in advanced stages of negotiations with contract execution scheduled for early August.

 

The Puntland Government and Dharoor Valley communities are fully supportive of the drilling project and have ensured they will do all to allow the project to move forward safely and expeditiously. Specific milestone target dates have been adjusted by the Puntland Government allowing the Company and partners to move the drilling start-up to the fourth quarter of 2011. In addition, partial relinquishments in both the Dharoor Valley and Nugaal Valley agreements have been finalized and approved. The Puntland Government has also given its approval for the formation of Horn Petroleum and the impending transaction with the Company.

[Fiqikhayre]

[Fiqikhayre]

[Fiqikhayre]

[Dabrow]

Great progress, how does the share look like? How much will the somalis get of this?

[Fiqikhayre]

Puntland OIL is coming Inshaallaah

 

[Fiqikhayre]

Good questions Dabrow, for the shares you could look onto the websites of the companies involved firstly Horn Africa Petroleum Corporation Africa Oil&Denovo who are in charge of the drilling.

 

You can also look into Range Resources and Red Emperor who are mainly involved in the financial aspect and gathering of capital needed for the project.

 

What will Somalis get out of it?

 

A great many, the biggest will be the strenghting of Peace and Development in Somalia's leading and pioneering State of Puntland which will also have an impact to the south and west of the country. A game changer of our country. The International Community foremost western countries will find their engagement and voice for Somalia again. There will be a forced peace in south Somalia and returned Interest for the whole country of Somalia.

 

There will also be some crazed individuals supported by pariah countries and mad men who will try to keep the status quo by trying to destabilize the State of Puntland. The envy and dislike for certain parts/regions of the country will grow even bigger as it is now, but many adversaries will be bought off as no one wants to be left behind or left poor. Puntland will also gain many new friends, well-wishers and some even claiming that their 4th grandfather's mother hailed from Puntland.

[Fiqikhayre]

Every Somali bring his/her:

 

 

Everybody will get his share of the OIL.

[Dabrow]

Somalia needs this change and I will look deeper through thoose figures when i have more time. This can be a game-changer in Somalia history and we all hope for the best.

[NASSIR]

Seems Calmadow & Berbera ( oil seeps) area have similar land forms.

I think a government of national unity should be able to exploit the country's resources. Otherwise, huge projects like these would be a recipe for disaster once the much-advertised prospective oil is discovered.

[burahadeer]

Somalia has the largest oil deposits in Africa.The largest lake of oil is a 3oo sq mile from near burao to Qardho which encompasses N to red sea & S to ethiopian border...This is called the "Nugal uplift".

2nd largest lake is lower juba at border with ethiopia( in the middle of that belly shaped area that intrudes to ethiopia).3rd largest is puntland from cape to hobyo(is along the coast).There r many wells from near Erigavo to Zeila.The red sea is full especially from Berbera toward the east.Don't forget natural gas & coal north of Burao.

[Alderman]

If sufficient oil and/or gas is found, whoever is in charge should (and must) invest in education and infrastructure.

 

I hope that it doesn't follow the example of African countries such as Mozambique, Nigeria and Guinea where the ruling politicians have stolen most the revenues and gave nothing back to its citizens.

[Timur]

The man in charge of PL's oil and mineral ministry is educated in Australia, very brilliant young family man. The future is bright.