Africa oil announces spud of shabeel north well

[Burn Notice]

June 5, 2012 (AOI–TSXV, AOI–NASDAQ OMX) … Africa Oil Corp. (“Africa Oil” or the “Company”) is pleased to announce the commencement of drilling operations on the Shabeel North well in Puntland, Somalia, the second well in the current drilling campaign. The well is being operated by Horn Petroleum Corp. (“Horn”) in which Africa Oil holds an interest of approximately 51%. Horn holds a 60% working interest in the Dharoor and Nugaal Valley Production Sharing Agreements (“PSA’s”) along with working interest partners Range Resources (20%) and Red Emperor (20%).

 

The Shabeel North well is targeting Upper Cretaceous Jesomma sands which had good oil and gas shows in the Shabeel well 3.5 kilometers to the south. Petrophysical analysis of downhole electrical logs in the Shabeel well indicated a potential pay zone in the Jesomma of up to 12 to 20 meters with an average porosity of 18 to 20%. It is planned to bring the rig back to the Shabeel location to test these sands to confirm their ability to flow oil once the drilling of the Shabeel North well is completed. The planned TD of the Shabeel North well is 2400 meters and drilling is expected to take 45 to 60 days to complete.

 

Horn President and CEO David Grellman stated, “The Shabeel North well will test the same reservoirs that appear to be oil bearing in the nearby Shabeel well. We would expect similar or better reservoir thickness and quality as we move deeper into the basin. The results of this well should help us confirm the extent of the petroleum system in the basin and, if successful, would be another step towards proving the economic potential of the basin.

[Burn Notice]

Horn President and CEO David Grellman stated, “The Shabeel North well will test the same reservoirs that appear to be oil bearing in the nearby Shabeel well. We would expect similar or better reservoir thickness and quality as we move deeper into the basin. The results of this well should help us confirm the extent of the petroleum system in the basin and, if successful, would be another step towards proving the economic potential of the basin.”

[Somalia]

So is Shabeel North at a lower elevation than Shabeel 1?

[MoonLight1]

is Shabeele north in Colombia or Trinadad?

[Burn Notice]

Somalia;838597 wrote:

So is Shabeel North at a lower elevation than Shabeel 1?

Shab Nth is smack bang in the middle of the basin between the ENI discovery (Darin 1) and last months HRN "discovery"....or the "sweet spot" if you like

 

check out page 5 Somalia

 

http://www.hornpetroleum.com/i/pdf/2012-04_HRNP.pdf

[Burn Notice]

MoonLight1;838599 wrote:

is Shabeele north in Colombia or Trinadad?

is kindergarten finished for the day???

[Somalia]

Burn Notice;838600 wrote:

Shab Nth is smack bang in the middle of the basin between the ENI discovery (Darin 1) and last months HRN "discovery"....or the "sweet spot" if you like

 

check out page 5 Somalia

 

http://www.hornpetroleum.com/i/pdf/2012-04_HRNP.pdf

Thanks a bunch man!!!!! I will have fun reading it

[Burn Notice]

Somalia;838604 wrote:

Thanks a bunch man!!!!! I will have fun reading it

Cheers Somalia

 

good to see some people have an interest in their country's progress

[MoonLight1]

Burn Notice;838606 wrote:

Cheers Somalia

 

good to see some people have an interest in their country's progress

SYDNEY — THE Australian market’s affair with the controversial Somalia exploration assets of Range Resources looks set to come to an end as the company prepares a spin-off of the projects on to London’s AIM board.

 

Speaking to The Australian at the ASX Small to Mid Caps conference in Hong Kong, Range executive director Peter Landau said the spin-off would help focus attention on the company’s other assets in Trinidad and Colombia.

 

Range became one of the first Western companies to move into Somalia, in 2005.

 

The company’s efforts to operate in the war-torn nation have regularly attracted controversy, with the local authorities at one point accused of being linked to piracy in the region. Range’s perseverance resulted in the company and its joint venture partners this year drilling the first exploration well in the country for more than 20 years.

 

But with production from Range’s Trinidad oil fields continuing to grow, Mr Landau said a spin-off of the Somalia interests would allow the market to provide more uncluttered valuations of the assets.

 

“What we’ve seen is Trinidad doesn’t get valued because all the punters trade Range on Puntland. So let’s take Puntland out, give (Range investors) the free stock, and have a separate AIM-listed stock,” he said.

 

Range’s joint-venture partners in Somalia, Horn Petroleum and Red Emperor Resources, are covering the company’s share of costs in the first two exploration wells.

 

The first well this year intersected oil-bearing sands, but it remains to be seen whether the reservoir is capable of flowing oil at commercial rates.

 

Drilling of the second well is to begin soon.

 

Away from Somalia, Range is focusing on lifting production in Trinidad from about 800 barrels of oil a day to about 2500 by the end of the year, a lift that would see the company generating about $30 million in free cashflow.

 

“Trinidad is always going to be the focus. It’s got 15 million barrels of (proven reserves), so we can’t spend the money quick enough,” Mr Landau said.

 

“Every time we put another well in we’re getting between 50 and 100 barrels a day.

 

“These wells are paying back in two to three months, and they’ll keep going for 20 years.”

 

Range is also set to shortly begin a sale of its oil and gas assets in Texas, which Mr Landau said should fetch about $50m to $70m in the current market.

 

The proceeds from that sale would be invested into Range’s recently acquired acreage in Colombia. Range has the right to earn a 65 per cent interest from two licences in the Putumayo basin.

 

By Paul Garvey

 

The Australian

 

May 30, 2012 .

 

 

 

 

Burn, You must be holding a worthless share certificate pal.

Ummada yaan la waalin oo niman tuug ah yaanan ummada expectationkeeda gacanta loo galin si ay dadka u niyad jabiyaan.

[Qandalawi]

Good development.

 

Moon, what's your problem mate, Somalis have got nothing to lose whatsoever in this.

[Somalia]

Moonlight1, did you even understand what it means?

[MoonLight1]

“What we’ve seen is Trinidad doesn’t get valued because all the punters trade Range on Puntland. So let’s take Puntland out, give (Range investors) the free stock, and have a separate AIM-listed stock,” he said.

This is clear and simple english, it seems after the dodgy crafty report on Shabeel 1 they are preparing themselves to abandon it and focus their so called "assets" if they have any on Trinadad and Colombia. These guys thrive on false hopes and bogus shares. lets bring real oil companies.

[Somalia]

So sad. Let me explain.

 

They are separating their investment portfolio. This is because unlike Trinidad and Colombia, Puntland has no proven oil reserves, it's exploration, thus it's more difficult for people to invest in the other parts of the companies as stocks are volatile in the ever-changing environment of exploration. Investors are not focusing on their other assets while Puntland is there.

 

Also, Range Resources holds the offshore license to Nugaal, which they will explore within 2 years and set up a rig within 4-6 years, so which abandonment are you talking about, the deal happened a few months ago.

 

Keep it moving, hater.

[Dabrow]

So when will the oil flow?

[MoonLight1]

Somalia;838626 wrote:

 

Keep it moving, hater.

Keep spinning lover.