ABN 88 002 522 099 4/50 Bourke Street Melbourne VIC 3000 G.P.O. BOX 1086 Melbourne VIC 3001 p +61 3 9662 1407 f +61 3 9662 1409 [email protected] 25 May 2006 Companies Announcement Office Australian Stock Exchange Limited 20 Bond Street SYDNEY NSW 2000 By E-Lodgement PUNTLAND UPDATE The Company is pleased to advise of the following key initiatives in respect of the development of Puntland’s mineral and hydrocarbon potential: • Appointment of Mr Liban Bogor and Mr Toufic Rahi to the Board. • Puntland Government strengthens support for Range following a recent letter purportedly from the Transitional Federal Government of Somalia being posted on various web sites. • Key data relating to previous oil and gas exploration activities has been identified with access and ownership expected shortly. New Board Members The Board is pleased to advise that Mr Liban Bogor and Mr Toufic Rahi have been appointed to the Board as Range strengthens its presence in Puntalnd and Dubai – the two key areas where Range will base its operations as it further develops on going exploration activities for minerals and hydrocarbons in the Somalian state of Puntland. Mr Bogor is a Somali-Canadian with postgraduate qualifications in IT management where Mr Bogor previously held various executive positions in IT and financial sectors with CIBC Bank, Scotia Bank and Qwest Communications. Mr Bogor has recently acted as a consultant to the Government of Puntland and was very instrumental in finalising the deal between Consort Pvt Ltd and subsequently Range Resources and the State of Puntland. Over the past few months Mr Bogor has worked as an advisor to Range and hopes to further his involvement with Range and utilise his considerable network in Puntland and Africa to further Range’s exploration and development in Puntland. Mr Toufic Rahi is a lawyer with considerable experience in international law and Middle Eastern corporate transactions. Mr Rahi is fluent in Arabic, English and French and the Board believes that his presence on the Board will further assist Range given the key activities it will undertake over the next 6 months. In conjunction with the above appointments, Mr Jim Marinis has resigned from Board to pursue other business initiatives. The Board wishes to thank Mr Marinis for his contribution and wishes him well in his future endeavours. Response to TFG The Company recently received a letter (that had been posted on various websites) which was addressed to the Puntland Government and was purported to be made from the Prime Minister’s office of the Transitional Federal Government (“TFG”) of Somalia. Given the posting of the letter on various websites and the number of shareholder queries received in respect of the letter the Company makes the following points in respect of the letter: • The letter addressed from the Prime Minister’s office of the TFG was not received by His Excellency, Puntland President Hirsi and subsequent correspondence from the President to the TFG has not confirmed the authenticity of the letter. Indeed several senior members of the TFG were not aware of the letter. • The letter from the Prime Minister’s office of the TFG suggested that the Puntland Government did not have authority to grant the mineral, oil and gas rights under the Contract of Work with Consort Private Limited and Range. The letter further suggested that only the TFG had authority to grant such rights. The letter directly contradicts previous written support from the TFG (specifically from the Prime Mininster’s Office) for Puntland and Range to explore and exploit Puntland’s sub soil resources. The contents of the letter are also not supported at international law by legal opinion received by the Company (prior to entering into the Contract of Work) from a leading international law firm specialising in the development of mineral and hydrocarbon resources in Africa. • Seeking confirmation from the TFG Prime Minister’s office as to the veracity of the letter, His Excellency, Puntland President Mr Hirsi stated that Puntland would no longer support the TFG in its role of trying to achieve a unified Somalia whilst the current Prime Minister held office (on the basis of the letter being genuine). The actions of the Prime Minister’s office (if proven to be true) seriously jeopardised and undermined Puntland’s position and the perception of its ability to exploit its natural resources and directly assist with the provision of employment and vital social infrastructure required for our people. • The support of Puntland has always been acknowledged as being essential to the formation of a unified Somalia hence the reason why Range remains totally committed to complying with the terms of the Contract of Work and, as a result, the exciting development of Puntland’s minerals and hydrocarbons. Previous Exploration Data Base The Company also advises that 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 of Puntland. The databases were previously thought to have been destroyed during the early 90s However, 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.,The Board believes that the acquisition of the databases will fast track third party joint venture and farm in negotiations. The Company looks forward to updating shareholders shortly on both the acquisition and the content of the databases. Yours sincerely MIKE POVEY Executive Chairman www.rangeresources.com.au
RRS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
