No oil has yet been found in commercial quantities in Puntland but Range believes a few wells in the right places could rectify the situation.
April 21, 2006
In a sign of just how desperate oil companies are becoming to replace reserves, a mystery "oil major" has signed a letter of intent with Range Resources. Range has the rights to 50.1 per cent of the oil and minerals in the semi-autonomous state of Puntland in Somalia - a place that oil majors like Houston's Conoco abandoned in the face of civil war 15 years ago.
The civil war is over in that part of Somalia. But the Warsangeli clan is upset at the Puntland Government's handling of the Range deal and Somali sources report 10 people have died in clashes with the president's militia in the last month.
On Wednesday, an ex-pat member of the Warsangeli clan told Xchange that at least two other clans and subclans were gearing up for more bloody battles.
Despite the political difficulties, yesterday's announcement sent day traders into a tizzy, making Range the most-traded stock on the ASX - 101 million.
The shares rocketed 1.4c to a steepling 5.2c before closing at 5c, after a week-long trading halt was lifted. No oil has yet been found in commercial quantities in Puntland but Range believes a few wells in the right places could rectify the situation. The company promised to reveal the name of the mystery oil major today.
Source: Sydney Morning Herald.
RRS Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
