puntland extension

The following was posted last night on the iii Board by Twisso:


Auerbach Grayson & Co., Inc. have commenced broker coverage of Africa Oil Corp and late last year published a broker note that has some relevance to RRL. This note includes an up to date activities schedule formatted in the same fashion as the chart that used to appear on the Africa Oil website. Africa Oil have clearly provided Auerbach Grayson with access to information and schedules for Nordic Exchange participant coverage to coincide with their listing on that exchange.

Preamble aside, here are the RRL related headlines -

- Dharoor and Nugaal PSA agreement revised to the end of 2011
- Africa Oil will drill 5 wells in 2011 including 3 in Kenya (Q1 - Q3), one in Ethiopia (Q4 2011) and one Dharoor (Q3 2011)
- No activities planned for Nugall
- Dharoor prospect built into the valuation model is listed as est. oil in place 440m boe with a 9% GCoS.

Unrisked to RRL (not accounting for GCos) = 440m * 20% = 88m boe
Risked to RRL (accounting for GCoS) = 440m * 9% * 20% = 8m boe

Unrelated to RRL's direct prospects is note of Africa Oil progressing with 3350km of seismic capture and processing across 6 Kenyan and Ethiopian blocks. The Mali blocks are not listed as the Centrica merger occured after this note was published, but the Heritage Oil website fills that gap by stating that capture and processing of 1000km of seismic is in progress.

The broker report is available via the Reuters website here (there's a cost involved but it's worth it to get those information gaps closed) - https://commerce.us.reuters.com/purchase/showReportDetail.do?docid=49622914

GL with your 2011 trades and investments.

--------------------------------------------------------------------------------