http://www.oilvoice.com/n/Range_Resourc ... 8b085.aspx
OpenBriefing.Com QUESTION:
Range holds a 20% interest in the Dharoor and Nugaal Valley Blocks in the Puntland State of Somalia. The amended production sharing agreement (PSA) with operator African Oil Corporation requires that two exploratory wells be spudded prior to 17 January 2012. What are the prospects for these wells and how certain are you of meeting the PSA timetable?
Executive Director Anthony Eastman ANSWER:
Exploratory prospects in Puntland are excellent, including three high potential drill sites in the more accessible Dharoor Valley of the Darin Basin. At least three large closures of 50 to 150 km2 each have been mapped in Dharoor. Drilling locations have been selected over two of these robust prospects and each well is targeting gross best estimate prospective resources of 300 Mmbbls and 375 Mmbbls recoverable for the two prospects (with 60 Mmbbls and 75 Mmbbls respectively net attributable to Range).
African Oil is finalising the appointment of drilling contractors and we expect rig mobilisation for the first well, which will be located in Dharoor, to commence in the current September quarter. Contracts for the drilling rig and third party services are in advanced stages of negotiation and are expected to be executed shortly.
From our perspective, the Puntland Government and key Dharoor Valley clans fully support the project, and will assist to ensure the drilling project moves forward safely and expeditiously. Specific milestone target dates have been adjusted by the Puntland Government allowing Range and our joint venture partners to move the drilling start-up to the fourth quarter of 2011.
We're looking at about 675 million barrels being drawn from the two initial wells in Dharoor, roughly equal to $70 billion, 51% of which goes to PL. This oil is going to be a huge weight off our backs but lets not lose focus of what PL is and what the goals of the state are. Lets continue on this path of unity and progress and insha allah with time oil will work its way into the formula. But I hope you enjoy this bit of news.
