canmex announcement...., page-16

this is copied from RT's post of the announcement on the 12th clearly stating he's Pres & CEO...

"ABN 88 002 522 099
34 Parliament Place
West Perth WA 6005
p +61 8 9488 5200
f +61 3 9321 6699
[email protected]
www.rangeresources.com.au
12 October 2006
Companies Announcement Office
Australian Stock Exchange Limited
20 Bond Street
SYDNEY NSW 2000
By E-Lodgement
MAJOR MOU SIGNED TO FARM US$50M INTO PUNTLAND
The Board of Range Resources Limited (ASX: RRS) is pleased to announced that it has
signed a non-binding Memorandum of Understanding(‘MOU’) with a subsidiary of
Canmex Minerals Corporation (‘Canmex’) in relation to an 80% farm in right in the Nogal
Basin and Darin Basin Blocks.
In order to achieve its strategic vision of finding and delineating the vast oil potential of
Puntland, the Company has sought the assistance of a Joint Venture partner with the
technical and financial capability to undertake this task. Range believes that Canmex
meets these criteria, and, combined with its strong understanding of Northern Somalia
and Yemen, will be successful explorers and operators.
CANMEX
Canmex is a subsidiary of Canmex Minerals Corporation (CXM) a Vancouver based
company listed on the Toronoto Stock Exchange. . The Board and key stakeholders of
Canmex have been involved in exploration, development and production operations in
a number of the major oil and gas provinces of the world including the Middle East,
Papua New Guinea, Malaysia, Vietnam, United Kingdom, Libya, Sudan, Albania,
Somalia and Russia. Canmex have demonstrated to the Board that they have the
financial capability and a strong technical team to undertake the exploration and
operator functions.
Heading up Canmex’s exploration effort in Puntland will be Rick Schmitt, President and
CEO. Rick is a Petroleum Geologist with 29 years of diverse international experience in
most of the world’s major petroleum provinces. His expertise includes exploration,
exploitation, operations and new ventures as well as strategic planning and
negotiations. Of particular relevance, Rick has worked extensively in the Horn of Africa
and Yemen. Prior to joining Canmex he lived in Yemen for five years as President and
www.rangeresources.com.au
General Manager of a major international oil company’s Yemen operations. He had
previously held senior positions with Nexen, notably as Vice President and General
Manager of Australia/Indonesia and General Manager of International Exploration and
Production. Rick is a UK graduate in Geological Sciences and is a Member of the
American Association of Petroleum Geologists and the Canadian Society of Exploration
Geophysicists. His knowledge and experience of the Yemen oilfields will be invaluable
in exploring the Puntland basins which are seen as analogous to the Yemen Basins. The
Company looks forward to working with him and his group towards creating exploration
and drilling success in Puntland.
Key Terms of the MOU
The key terms of the MOU with Canmex are as follows:
a) Main conditions precedent of all necessary regulatory approvals (see Puntland
Government and TFG sign off referred to below), final due diligence and formal
documentation (a production sharing agreement between the Puntland
Government, Range and Canmex is expected to be finalised in the next 4
weeks). Targeted completion date is 15 November with a drop dead date of 31
December 2006;
b) Canmex will be the Operator of the on shore oil and gas exploration effort with
an obligation to spend US$50m to earn an 80% interest in the two main basin
areas in Puntland (the Nogal and Darin Basins). The US$50m includes a minimum
of 4 exploration wells to be completed (2 in each basin), a sign on bonus to be
confirmed upon finalization. There is a further US$3.5m payment upon
commercial production. Range free carried until exploration moneys spent;
c) Of the Canmex 80% farm in right, 20% (in one or both basins) is available to farm
out to third parties on terms to be agreed between Range and Canmex. Any
sign on bonuses with third parties will be split 60% Range , 40% Canmex.
PUNTLAND AND TFG APPROVALS
Both the Puntland Government and the Transitional Federal Government of Somalia
have provided Range and Canmex with their absolute support of the MOU, which is
reinforced in official letters sent to both Companies;
“The Puntland Government is extremely encouraged by the continued exploration and
development that Range is bringing to our state and the proposed farm in with Canmex
is obviously another significant step forward. With over US$45m committed over the
next few years, the Government believes that Range and Canmex have put together a
partnership that will unlock the considerable hydrocarbon potential of Puntland and
deliver the returns to all key stakeholders working together to bring Puntland back on to
the African stage….
the Puntland Government has reviewed the proposed commercial terms of the farm in
joint venture with Canmex Minerals Corporation and in principle supports and approves
all key aspects of the transaction.”
Mohamud Hersi – President of Puntland State of Somalia.
www.rangeresources.com.au
“The Transitional Federal Government of Somalia in principle supports and fully endorses
the activites of Range Resources Limited and Canmex Minerals Corporation. Further, the
TFG acknowledges and agrees with the key terms of Range’s Contract of Works and the
Range/Canmex PSA agreement will be recognized and upheld within any national
framework of mining petroleum legislation enacted as part of the Somali Unification
Process which the TFG is involved in.”
Abdullahi Yusuf Ahmed – President of the Transitional Federal Government of Somalia.
The Company looks forward to finalising the Canmex Partnership and unlocking the
significant hydrocarbon potential of Puntland.
Yours Faithfully
MICHAEL POVEY
Managing Director