punty spin off

Range to spin off Somalia assets
www.theaustralian.com.au

Full article... "THE Australian market's affair with the
controversial Somalia exploration assets of Range
Resources looks set to come to an end as the
... company prepares a spin-off of the projects on to
London's AIM board. Speaking to The Australian at the ASX Small to Mid
Caps conference in Hong Kong, Range executive
director Peter Landau said the spin-off would help
focus attention on the company's other assets in
Trinidad and Colombia. THE Australian market's affair with the
controversial Somalia exploration assets of Range
Resources looks set to come to an end as the
company prepares a spin-off of the projects on to
London's AIM board. Speaking to The Australian at the ASX Small to Mid
Caps conference in Hong Kong, Range executive
director Peter Landau said the spin-off would help
focus attention on the company's other assets in

Trinidad and Colombia. Range's joint-venture partners in Somalia, Horn
Petroleum and Red Emperor Resources, are
covering the company's share of costs in the first
two exploration wells. The first well this year intersected oil-bearing
sands, but it remains to be seen whether the
reservoir is capable of flowing oil at commercial
rates. Drilling of the second well is to begin soon. Away from Somalia, Range is focusing on lifting
production in Trinidad from about 800 barrels of
oil a day to about 2500 by the end of the year, a
lift that would see the company generating about
$30 million in free cashflow. "Trinidad is always going to be the focus. It's got
15 million barrels of (proven reserves), so we
can't spend the money quick enough," Mr Landau
said. "Every time we put another well in we're getting
between 50 and 100 barrels a day. "These wells are paying back in two to three
months, and they'll keep going for 20 years." Range is also set to shortly begin a sale of its oil
and gas assets in Texas, which Mr Landau said
should fetch about $50m to $70m in the current
market. The proceeds from that sale would be invested
into Range's recently acquired acreage in
Colombia. Range has the right to earn a 65 per
cent interest from two licences in the Putumayo
basin. "