Range Update: Were Nearly There Boys. Drilling Reaches 3425 Meters. Oil Confirmed

[Dr_Osman]

 

Range Resources rallies on Puntland report, retains 'buy' rating at Fox-Davies - UPDATE

10:15 am by Sergei Balashov

 

Shares in Range Resources rallied 5.5pct on the Puntland update, while broker Fox-Davies repeated its 'buy' recommendation on the stock

 

Range Resources (LON:RRL) surged in early trade on a positive update from its drilling campaign in Puntland, Somalia, while broker Fox-Davies Capital advised investors to buy the stock.

 

Range and partner Red Emperor Resources (LON:RMP) told investors that the Shabeel-1 well is now down to 3,425 metres and has confirmed the existence of a 150 metre gross section of oil and possible net pay of 12 to 20 metres.

 

The update also revealed that oil shows had been found in deeper lying sandstone which are currently being drilled.

 

“A testing programme including the zones discovered to date and any deeper potential pay zones encountered will be agreed with the operator upon total depth being reached,” Range said in a release to the market this morning.

 

Shares in the AIM quoted oil explorer climbed 5.5 percent to reach 9.84 pence by 10 AM, giving it a market cap of £223.5 million.

 

Fox-Davies cheered the update, repeating its ‘buy’ recommendation on Range with a target price of 27 pence per share in a note titled “Puntland looking like a better Punt”.

 

“Firstly it raises the potential that we may have a commercial discovery, and secondly, it increases the prospectivity of the remaining targets in the exploration portfolio,” Fox-Davies said in the note.

 

Drilling will continue down to 3,800 metres. The primary and secondary targets are believed to be in Lower Cretaceous and Jurassic intervals that are equivalent to the main productive section seen in similar fields in Yemen.

 

Once the well is complete it is planned that the rig will move onto the Shabeel North location, where construction is nearing completion for the second well, it added.

[Dr_Osman]

The official update

 

http://www.rangeresources.com.au/fileadmin/user_upload/asx/ASX_Announcement_Puntland_Update_14.05.12.pdf

[Dr_Osman]

God look at that show-down look

 

 

Here he comes boyyyyyyyyyyyyys

[Xaaji Xunjuf]

^^ Why is she holding his hand ?

[xiinfaniin]

Great news

[xiinfaniin]

To this end, Horn Petroleum Corporation, a subsidiary of Canada’s Africa Oil, began its oil exploration operations in the arid north-east of Somalia in February, drilling two wells to a depth of 3,800m for the very first time in 21 years. Chinese giant corporation, China National Offshore Oil Corporation (CNOOC), has also been granted legal permission from Somalia to drill for oil, which, in and by itself, is yet another proof of China’s desperate need for alternative energy sources other than those from the Middle East.

 

Similarly, India has started making approaches to get a piece of the Somalia oil. New Delhi has proposed to train the future Somalia army, increased its trade ties with Somalia, and integrated Somalia into its e-network “to prop and increase” Somalia’s IT capacity. British Petroleum, finally, is in talks with the Putland authorities to gain exploration rights and has already unveiled an initiative to support job-creation projects in the coastal regions of Somalia.

 

Given Somalia’s geostrategic location and proximity to strategic waters in the Horn of Africa, there are good reasons to be optimistic that if adequate amount of oil is found, Somalia could, over the medium term, become a major trading hub and an attractive destination for foreign investment. There is no public infrastructure to speak of and the means of transportation are literally nonexistent. Discovery of oil as well as its need for large-scale infrastructure projects, in essence, will catalyse what human suffering over the last 20 years has failed to do: a genuine push by the international community to put an end into Somalia’s social, political, and economic problems.

 

http://gulfnews.com/opinions/columnists/oil-can-be-a-boon-for-somalia-1.1015422

[Gheelle.T]

Thanks for the update.

[General Duke]

xiinfaniin;829792 wrote:

To this end, Horn Petroleum Corporation, a subsidiary of Canada’s Africa Oil, began its oil exploration operations in the arid north-east of Somalia in February, drilling two wells to a depth of 3,800m for the very first time in 21 years. Chinese giant corporation, China National Offshore Oil Corporation (CNOOC), has also been granted legal permission from Somalia to drill for oil, which, in and by itself, is yet another proof of China’s desperate need for alternative energy sources other than those from the Middle East.

 

Similarly, India has started making approaches to get a piece of the Somalia oil. New Delhi has proposed to train the future Somalia army, increased its trade ties with Somalia, and integrated Somalia into its e-network “to prop and increase” Somalia’s IT capacity. British Petroleum, finally, is in talks with the Putland authorities to gain exploration rights and has already unveiled an initiative to support job-creation projects in the coastal regions of Somalia.

 

Given Somalia’s geostrategic location and proximity to strategic waters in the Horn of Africa, there are good reasons to be optimistic that if adequate amount of oil is found, Somalia could, over the medium term, become a major trading hub and an attractive destination for foreign investment. There is no public infrastructure to speak of and the means of transportation are literally nonexistent. Discovery of oil as well as its need for large-scale infrastructure projects, in essence, will catalyse what human suffering over the last 20 years has failed to do: a genuine push by the international community to put an end into Somalia’s social, political, and economic problems.

 

http://gulfnews.com/opinions/columnists/oil-can-be-a-boon-for-somalia-1.1015422

Wonderful stuff. Thanks Xiin.

[xiinfaniin]

Duke,

 

This update is teh most welcome , it bears a great news indeed