sm herald article, page-2

I think they didn't even bother to read the report!

From the report:

"According to Company sources, Range is estimated to have 19 billion barrels of oil (based on the Yemen Rift basins and their proven reserves and the analogy of the rift basin extensions in Puntland). These are yet to be proven but are inferred resources."

"We used a 1% probability of success to reflect geological uncertainties pertaining to this resource estimate. The Company is yet to fully evaluate the reserve potential in its licence areas. Our 1% success rate is below the usual 10% success rate assigned for inferred resource. Given the preliminary stages of the project and the absence of adequate geological data, we believe that it is appropriate to maintain a low probability of success. However, we may change this probability assumption as we receive more information along with the Company’s exploration programme."


The following flies in the face of their comment:

"Given the preliminary stages of the project and the absence of adequate geological data, we believe that it is appropriate to maintain a low probability of success.

Range intends to continue exploration in Puntland, and vastly benefi ts from already available geology data, and development work undertaken by majors prior to the civil war. Conoco-Phillips was very active in the Nogal Valley and had completed extensive exploration work. Records indicate that there is over four thousand line kilometres of seismic that has been shot and interpreted by Conoco. The quality of the seismic is extremely good and a number of prospects were mapped as “ready to drill�. Range has traced sufficient data, together with a detailed structural surface mapping, which will enable Range to proceed with a four-well drill programme. Range has no plans to
re-shoot and re-interpret the seismic, as they appear to be reliable.

The Company is currently in the process of obtaining key oil and gas exploration data bases (eg. 2D seismic, well logs etc) in respect of previous exploration activities undertaken in the region. The recent field survey trips undertaken by the Company have resulted in the accurate location of seismic lines and a number of previously drilled wells in the Nogal Valley including the Kalis-1 and Nogal-1 wells drilled in late 1989-1990 by Conoco. In addition, key exploration data has been recovered including well logs for the these wells and seismic data that includes the former Conoco blocks. The Company has also been active in seeking data outside of Somalia and a number of
important datasets are in the process of being acquired by the Company.

Make up your own mind...my money is that conoco where on to something, very special...