Oil exploration in Puntland, Somalia

[Che -Guevara]

^True but there never was any investment in mineral or oil exploration, so saying Somalia doesn't have one anything or another is simply jumping the gun. The place needs investment before we can ascertain what it holds.

[Dr_Osman]

Africa Oil Provides Update on Puntland Drilling

 

 

 

VANCOUVER, BRITISH COLUMBIA, May 17, 2012 (MARKETWIRE via COMTEX) -- Africa Oil Corp. CA:AOI

-7.53% (omx:AOI) ("Africa Oil" or the "Company") is

pleased to provide an update on the drilling program in Puntland, Somalia.

 

The Shabeel well has reached a total depth of 3,470 meters and has encountered metamorphic basement at a depth of 3,430 meters and is currently being suspended for future testing. In addition to the previously announced 12 to 20 meter zone of significant hydrocarbon pay in the Upper Cretaceous Jesomma Formation, the well has encountered additional potential net pay sands in the Jurassic Adigrat Formation at a depth of 3,246 to 3,430 meters, several of which exhibited oil and gas shows. Petrophysical analysis of the well log data indicates up to 3 meters of potential hydrocarbon pay in several thin sand units. They are not considered to warrant testing at this time, but do further confirm the existence of a working petroleum system.

 

The rig will now move to the Shabeel North location which is 3.5 kilometers north of the current location. The primary objective of this well will be to evaluate the Upper Cretaceous Jesomma Sands which appear to be oil bearing at the Shabeel location. Subsequent to the drilling of this well, it is the intention of the Company to return to the Shabeel well and test the Jesomma sands once the necessary testing equipment has been mobilized into the country.

 

Keith Hill, President and CEO of Africa Oil, commented, "We are very encouraged by the results of the Shabeel well which appears to have confirmed oil bearing sands in two zones. This has very positive implications for the prospectivity of the basin. We look forward to the results of the Shabeel North well and to testing the Jesomma sands to confirm the potential of the block."

 

The Shabeel well is operated by Horn Petroleum Corp. ("Horn Petroleum"). Africa Oil holds a 51% equity interest in Horn Petroleum which in turn holds a 60% working interest in the Dharoor and Nugaal permits in Somalia. The other partners in the blocks include Range Resources (20%) and Red Emperor (20%).

 

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia and Mali as well as Puntland (Somalia) through its 51% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are in within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 300,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Albert Graben oil discovery in neighbouring Uganda. Similar to the Albert Graben play model, Africa Oil's concessions have older wells, a legacy database, and host numerous oil seeps indicating a proven petroleum system. Good quality existing seismic show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".

 

ON BEHALF OF THE BOARD

 

Keith C. Hill, President and CEO

 

Africa Oil's Certified Advisor on NASDAQ OMX First North is Pareto Ohman AB.

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

[Dr_Osman]

RANGE RESOURCES LTD - Lodgement of Open Briefing Puntland

Range Resources Ltd

RGRYY | 5/18/2012 2:50:00 AM

RANGE RESOURCES LTD - Lodgement of Open Briefing Puntland

 

18 May 2012

 

Lodgement of Open Briefing Puntland

Managing Director on Puntland Drilling and Outlook

 

Open Briefing interview with Managing Director Peter Landau

 

Range Resources Limited (ASX: RRS, AIM: RRL) ("Range" or the "Company") is an

oil & gas producer and explorer with producing assets in Trinidad and Texas, US

and with exploration interests in Puntland, Somalia and the Republic of

 

Georgia.

 

Market capitalisation: $255 million

 

In this Open Briefing®, Peter Landau discusses

 

 

* Update on Shabeel-1 well

 

* Spudding of the Shabeel North Well in early June

 

 

Record of interview:

 

openbriefing.com

 

Range Resources Limited (ASX: RRS, AIM: RRL) yesterday announced the completion

by operator Horn Petroleum of drilling of the Shabeel-1 well (Range Resources Limited

20%, Horn Petroleum 60%, Red Emperor Resources NL 20%) in the Dharoor Block in Puntland

approximately 300 metres above planned target depth (TD). You've suspended

drilling the well for future testing. What is your assessment of the result?

 

 

MD Peter Landau

The well has been a significant success to date with the discovery of a 12 to

20 metres net hydrocarbon pay zone in the Jesomma sands. The zone needs to be

commercially flow tested and this will be undertaken after the completion of

the second well, Shabeel North, which will spud early June. Based on Range's

internal technical team's review of the net pay zone and results to date, a

successful flow test could result in 70 to 130mm barrels of recoverable oil

from the well of which 14 to 26mm bbls would be attributable to Range.

 

It is also important to remember that this is the first hydrocarbon well

drilled in the Dharoor Valley for over 50 years and it is a massive credit to

all involved, namely Horn Petroleum, the Puntland Government and the local

Puntland communities that the well has been successfully drilled to date.

Globally, the average discovery rate is between one in five and one in 10 for a

`wildcat' well, which essentially is what Shabeel-1 is, hence we consider the

well successful to date with both the net pay and the confirmation of an active

petroleum system.

 

Whilst the market and short term traders may have been anticipating further

success in the deeper sections of the well, what we have discovered is

extremely significant and the chances of a commercial hydrocarbon operation in

Puntland are far greater now than when the well was spudded. And it must be

remembered that we did encounter additional potential net pay sands in a

Jurassic aged formation over a 184 metre section at a depth of 3,246 metres to

3,430 metres. The fact that hydrocarbons were encountered at a number of levels

is particularly significant moving ahead.

 

 

openbriefing.com

 

Is there a reason the commercial flow test cannot occur immediately before moving to Shabeel North?

 

MD Peter Landau

 

Obviously the preference would be to flow test immediately but timing and

logistics would mean that the rig and crew would be idle for four to six weeks

at what are expensive day rates in the region. Previous test equipment flown in

was designed for open hole, smaller diameter testing as opposed to the now

cased well requiring high performance perforation. This is quite standard

practice across the world, particularly in remote areas.

 

 

openbriefing.com

You've already begun preparing for Shabeel North with a 50 metre pre-drill hole

and drill pad constructed at. What is the expected timing for drilling at

Shabeel North and to what extent will this well be contingent on the Shabeel-1

outcome?

 

MD Peter Landau

 

The Shabeel North well is scheduled to spud early June with a revised Target

Depth of 2,400 metres. The well has an identified Jessoma formation

significantly thicker and of better quality than the Shabeel-1 well providing

the joint venture is with great comfort in moving the rig immediately to drill

the second well. Internal technical estimates suggest recoverable oil of

between 100 to 150mm barrels from a successful discovery in the Jessoma

formation, of which 20 to 30mm barrels would be attributable to Range.

 

It is also important to note that given the Jessoma discovery in the first

well, the second well will be drilled with smaller casing to ensure that open

hole testing can be undertaken with the equipment already on site. So no, the

well is not contingent on the Shabeel-1 outcome, but the success there

certainly gives us greater confidence moving forward.

 

 

openbriefing.com

 

It has been suggested that some of the wells in Yemen were successful after drilling through metamorphic basement, do you have a comment to that?

 

MD Peter Landau

It's not that simple with regards to understanding the lithology comparison of

what was encountered in the fractured basement formations in Yemen and what was

encountered within the Dharoor metamorphic section. There is a consensus view

across the joint venture technical team that the correct decision has been

made, remembering that their collective knowledge on what occurred in Yemen

is

immense.

 

openbriefing.com

 

With a revised target of just the Jessoma formation, are you still confident of a commercial discovery?

 

MD Peter Landau

 

Absolutely. If the Shabeel-1 well successfully flows and the Shabeel North well

delivers to current expectations, we would have discovered between 170 to 280mm

barrels of recoverable oil in our first two wells (with 34 to 56mm barrels

attributable to Range) with the remainder of the basin still to be tested.

Investors must also remember the well's proximity to the coast (approx 60 km)

and the relative ease of constructing a pipeline to an offshore loading

facility based on a commercial discovery.

 

 

openbriefing.com

 

What are your priorities for Range over the coming months?

 

MD Peter Landau

 

Nothing changes for Range in the immediate future and we are working head down,

bum up. We are fully funded and look forward to updating the market on a number

of fronts including Colombia and our flagship operations in Trinidad and of

course hopefully on further drilling success in Puntland.

 

 

openbriefing.com

 

Thank you Peter.

 

For more information about Range Resources, visit www.rangeresources.com.au or call Anthony Eastman or Peter Landau on (+61 8) 9488 5220

For previous Open Briefings by Range Resources, or to receive future Open

Briefings by email, visit openbriefing.com

 

DISCLAIMER: Orient Capital Pty Ltd has taken all reasonable care in publishing

the information contained in this Open Briefing®; furthermore, the entirety of

this Open Briefing® has been approved for release to the market by the

participating company. It is information given in a summary form and does not

purport to be complete. The information contained is not intended to be used as

the basis for making any investment decision and you are solely responsible for

any use you choose to make of the information. We strongly advise that you seek

independent professional advice before making any investment decisions. Orient

Capital Pty Ltd is not responsible for any consequences of the use you make of

the information, including any loss or damage you or a third party might suffer

as a result of that use.

 

 

PR Newswire

May 18, 2012 - 2:50 AM EDT

[Dr_Osman]

Excellent work range/africa oil and horn petroleum!!! They're is a proven petroleum system in Shabelle 1 with recoverable oil of 170 million just in that well. Testing of the Shabelle 1 oil well will be conducted after the drilling of shabelle north well. Both wells will be drilled and proven that a petroleum system exists and then only testing remains.

 

Around 400 million barrels of oil will be recovered from these two wells is my guess, this should give the major oil companies confidence to move in to and buy out some more concessions and wells in these productive basins which contain 17 billion barrels of oil altogether.

[AYOUB]

Does this mean reduction in the amount Xiin would receive in Gaabbati payments?

[General Duke]

Shirkadda howlaha shidaal barista ka wada dalka Soomaaliya gaar ahaan Ceelka Shabeel-1 ee Dooxada Dharoor ayaa markii ugu horeysey shaaca ka qaaday in shidaal laga helay Puntland.

 

Horn Petroleum oo iyadu ah shirkadda gacanta ku haysa qodaalka ceelka Shabeel-1 ayaa war-saxaafadeed ay soo saartay ku *sheegtay in Riigeedu uu gaaray shidaal kadib markii ceelka hoos loo qoday masaafo dhan 3.47km.

 

Shirkadda ayaa sidoo kale war-saxaafadeedkeeda ku sheegtay in la hakiyey qodaalka ceelka Shabeel-1 si loo tijaabiyo in shidaalka laga helay uu yahay mid suuqyada caalamiga ah loo iib geyn karo.

 

“waxaa na dhiirigeliyey natiijadan hordhaca ah oo muujinaysa jiritaanka shidaalka ee ceelka Shabeel-1″*David Grellman maareeyaha guud ee shirkadda Horn Petroleum ayaa yiri.

 

Shirkadda ayaa dhinaca kale sheegtay in dhowaan la bilaabi doono qodaalka ceelka Shabeel-2 oo isagu masaafo 3.5 ah u jira halka laga qoday ceelka Shabeel-1.

 

Shabeel-1 oo muddo 4-bilood ah laga joogo xiligii qodaalkiisa la bilaabay ayaa in badan oo dadka arimaha shidaalka ka faalooda ahi waxay sheegeen inuu horseedi doono koboc dhanka ganacsiga ah oo xoogan kaas oo Soomaaliya gaar ahaan Puntland u furi doona baal cusub.

 

Dowladda Puntland ayaan arintan weli wax war ah kasoo saarin, waxaase la filayaa in ayaamaha soo socda ay mas’uuliyiinta ugu sareeya dowladu ka hadlaan islamarkaana la qabto munaasabad balaaran oo ceelka Shabeel-1 xarigga looga jarayo.

 

Dadka reer Puntland iyo guud ahaan Soomaalida ayaa si weyn usoo dhoweeyey howlaha shidaal baarista ee ka socda Puntlan.

 

Linkigan hoose ka akhriso war-saxaafadeedka shirkadda Horn Petroleum.

 

http://hornpetroleum.mwnewsroom.com/press-releases/horn-petroleum-provides-update-on-puntland-drillin-tsx-venture-hrn-201205170791383001

[General Duke]

20%, Horn Petroleum 60%, Red Emperor Resources NL 20%) in the Dharoor Block in Puntland

approximately 300 metres above planned target depth (TD). You've suspended

drilling the well for future testing. What is your assessment of the result?

 

 

MD Peter Landau

The well has been a significant success to date with the discovery of a 12 to

20 metres net hydrocarbon pay zone in the Jesomma sands. The zone needs to be

commercially flow tested and this will be undertaken after the completion of

the second well, Shabeel North, which will spud early June. Based on Range's

internal technical team's review of the net pay zone and results to date, a

successful flow test could result in 70 to 130mm barrels of recoverable oil

from the well of which 14 to 26mm bbls would be attributable to Range.

 

It is also important to remember that this is the first hydrocarbon well

drilled in the Dharoor Valley for over 50 years and it is a massive credit to

all involved, namely Horn Petroleum, the Puntland Government and the local

Puntland communities that the well has been successfully drilled to date.

Globally, the average discovery rate is between one in five and one in 10 for a

`wildcat' well, which essentially is what Shabeel-1 is, hence we consider the

well successful to date with both the net pay and the confirmation of an active

[General Duke]

There are 6000 wells on ND, yet in Thierry first try the found Oil...

[BN]

The whole Horn region is one of the last 'untapped' areas of the world. The world has taken notice. Somalis are just beginning to setup mineral and resource companies....it would be prudent for them to take part in this scavenger hunt before all of the real scavengers dig in their hooks. At the very least there should be partnerships so we are not completely dependent on foreigners. This is 2012. We cannot seriously say that there aren't any Somalis with capital to invest, with know-how, and with extended reach. If 600 Somali investors can setup Hormuud Telecom, I am sure something on a similar or grander scale can be accomplished outside of the telecom field. And setting up an oil rig to drill for oil does not cost millions of dollars (if they tell you this, run the other way!); the technology is NOT sophisticated or innovative. It is more about the know-how and you can import engineers from Asia, Africa or elsewhere; not to mention the Somalis with this training around the world.

 

Yes, I believe there is oil, but it will take time to find commercially viable quantities. In the interim, we should be careful not to give the house away.

 

Salaam.

[kingofkings]

:cool:

[uchi]

We need to raise atleast close to a billion~ which Somali's can help with that?

[Abdul]

xiimaaya;831400 wrote:

the dude named SOMALIA remember all the shiek pictures and the reer waqoy chick he was gona marry if oil was found

He needs oil to marry a rer waqoyi chick??Lool

[xiimaaya]

Abdul;831802 wrote:

He needs oil to marry a rer waqoyi chick??Lool

apperantly the kid has low self esteem he thinks that he needs sheik money to impress reer waqoy chik..

 

Waar you dont need all that just be confident or by her Shiisha doble apple that would do it.

[Mario B]

I think, i'm about the only one who enjoys Xiimaaya's sense of humour...lol keep up the good work, saxib.

P.s We need to keep it low on this one until we find commercially viable oil otherwise we may come out sounding like the boy who cried wolf.

[General Duke]

Range Resources confident of commercial discovery in Puntland

 

Fri 10:00 am by Philip Whiterow Drilling of Shabeel-1 has been suspended pending testing, with Range saying it had been a significant success to date.

Range Resources’ (LON:RRL ASX:RRS) Shabeel-1 well in Puntland, Somalia could produce up to 130mm barrels of recoverable oil, the company’s MD said in an interview today.

Drilling of Shabeel-1 has been suspended pending testing, with Range saying it had been a significant success to date with the discovery of a 12 to 20 metres net hydrocarbon pay zone in the Jesomma sands.

Managing director Peter Landau added that based on Range's internal technical team's review of the net pay zone and results to date, a successful flow test could result in 70 to 130mm barrels of recoverable oil from the well.

Of that, 14 to 26mm bbls would be attributable to Range.

“The zone needs to be commercially flow tested and this will be undertaken after the completion of the second well, Shabeel North, which will spud early June,” he said.

“It is also important to remember that this is the first hydrocarbon well drilled in the Dharoor Valley for over 50 years and it is a massive credit to all involved, namely Horn Petroleum, the Puntland Government and the local Puntland communities that the well has been successfully drilled to date,” he said in an interview with Open Briefing.

“Globally, the average discovery rate is between one in five and one in 10 for a ‘wildcat’ well, which essentially is what Shabeel-1 is, hence we consider the well successful to date with both the net pay and the confirmation of an active petroleum system.

“Whilst the market and short term traders may have been anticipating further success in the deeper sections of the well, what we have discovered is extremely significant and the chances of a commercial hydrocarbon operation in Puntland are far greater now than when the well was spudded.

“And it must be remembered that we did encounter additional potential net pay sands in a Jurassic aged formation over a 184 metre section at a depth of 3,246 metres to 3,430 metres. The fact that hydrocarbons were encountered at a number of levels is particularly significant moving ahead.”

Landau added the company decided to test the Shabeel-1 well after drilling Shabeel North for timing and logistic reasons.

“Obviously the preference would be to flow test immediately but timing and logistics would mean that the rig and crew would be idle for four to six weeks at what are expensive day rates in the region.

“Previous test equipment flown in was designed for open hole, smaller diameter testing as opposed to the now cased well requiring high performance perforation.

“This is quite standard practice across the world, particularly in remote areas.”

Laundau added that the Shabeel North well is scheduled to spud early June with a revised target depth of 2,400 metres.

“The well has an identified Jessoma formation significantly thicker and of better quality than the Shabeel-1 well providing the joint venture with great comfort in moving the rig immediately to drill the second well.

“Internal technical estimates suggest recoverable oil of between 100 to 150mm barrels from a successful discovery in the Jessoma formation, of which 20 to 30mm barrels would be attributable to Range.

“It is also important to note that given the Jessoma discovery in the first well, the second well will be drilled with smaller casing to ensure that open hole testing can be undertaken with the equipment already on site.“

Landau said that the Shabeel North well is not contingent on the Shabeel-1 outcome, but the success there certainly gives Range greater confidence moving forward.

He added that he was still confident of a commercial discovery even with a revised target of just the Jessoma formation.

“If the Shabeel-1 well successfully flows and the Shabeel North well delivers to current expectations, we would have discovered between 170 to 280mm barrels of recoverable oil in our first two wells (with 34 to 56mm barrels attributable to Range) with the remainder of the basin still to be tested.

“Investors must also remember the well's proximity to the coast (approx 60 km) and the relative ease of constructing a pipeline to an offshore loading facility based on a commercial discovery.

“Nothing changes for Range in the immediate future. We are fully funded and look forward to updating the market on a number of fronts including Colombia and our flagship operations in Trinidad and of course hopefully on further drilling success in Puntland,” he concluded.

Range has a 20 per cent stake in the Dharoor Block in Puntland, Horn Petroleum has 60 per cent and Red Emperor Resources 20 per cent.