africa oil conducting seismic survey in puntland somalia

Africa Oil Conducting Seismic Survey in Puntland Somalia

11-02-2008

Range Resources reports that seismic operations are continuing in the Dharoor valley by Range's joint venture partner Africa Oil. The survey is being undertaken over the prospective part of the basin and will hopefully identify closures at the Jurassic and Cretaceous level.

Acquisition of a planned 2600 km of seismic data is approximately 30% complete. Drilling at the planned Nogal valley sites is still on standby with the security situation in the area to be reassessed in conjunction with the proposed drilling program in the Dharoor valley. At this stage, spudding of the first well by Africa Oil is scheduled for the first quarter of 2009.

As recently announced, Range has entered into a Letter of Understanding with a leading Chinese geophysical service provider. The Agreement is in respect of completing a regional survey of offshore Puntland, Somalia, comprising 15,000 kilometers of 2-D seismic data on Puntland's offshore oil and gas areas.

Under the terms of the Agreement, the contractor has conditionally agreed to finance 50% of the costs associated with the Seismic program, by way of a multi client tender program for off shore Puntland. A seismic charter is available at this stage to commence before the end of 2008. Led by the new management team, the Company is in discussions with a number of parties regarding the joint venturing of Range's current 100% interest in offshore Puntland, and the balance of the funding of the seismic program.