Range Resources Limited announces that it has entered into an Agreement with the Puntland Government with respect to obtaining a 100% working interest in the highly prospective Nugaal Basin Offshore Block .
The Block is an extension of the onshore Nugaal Region which has the potential for deltaic deposits from the Nugaal Valley drainage system and comprises over 10,000km.
The Company will commit to a 2D seismic program within the first three years, with further 3D seismic and an exploration well to follow in the second three year period. The Agreement is subject to a formal PSA being entered into and all necessary regulatory approvals. Commercial terms will be similar to the current on-shore PSAs.
As part of the entering into the Nugaal Offshore PSA, Range has committed US$5m, for the tarmac sealing of an Airport Runway in Puntland at the Government’s direction.
It is Ranges intention to offer a participation interest to its joint venture partner, Red Emperor Resources NL (ASX:RMP) on terms to be agreed.
CURRENT PUNTLAND WELL
The Shabeel-1 well on the Dharoor Block in Puntland, Somalia is currently at a depth of 2,384m and drilling ahead. It is expected that casing will be run at approximately 2400-2700m as dictated by the next electrical logging run. Target depth remains at approximately 3800m.
Range Managing Director Peter Landau commented; “Today’s announcement is significant in that we have demonstrated the next development path forward for Range. A successful first well in Puntland will trigger increased interest in the whole Puntland region and Range believes it has secured the most prospective offshore block following previous work undertaken by Range in 2009 and 2010 which included a review of historical seismic and well data.”
[mappress] Source: Range Resources Limited, March 20, 2012