Red Emperor Resources (LON:RMP) and Range Resources (LON:RRL) jumped 10% to 33p and 6% to 10p respectively after both companies said the joint venture Shabeel-1 well in Somalia has found oil. The company said it encountered 150 metres of oil, with around 12 to 20 metres of that likely to be productive, but didn't say at what depths. Currently at a depth of around 3,425 metres, the well is planned to be drilled to 3800 metres. Shabeel-1 is the first of a two exploration well drilling programme targeting between 300 and 375 million barrels of oil. A testing programme will be agreed with the operator, Horn Petroleum Corp. (HRN.V), upon the planned depth being reached, the companies said. Red Emperor holds a 20% stake in two licenses in Puntland, Northeast Somalia, with Horn Petroleum acting as operator with a 60% stake and Range
RMP Price at posting:
56.0¢ Sentiment: ST Buy Disclosure: Held
