wildcats plan is set for somalia

Wildcats plan is set for Somalia

BARRY MORGAN

Upstream

October 26, 2007



Onshore action by companies awaits rig tender results

Perth-based Range Resources and partner Africa Oil are aiming to sink two wells back-to-back in the autonomous Somali region of Puntland from the end of next January.

The partners are also planning to shoot a 3D seismic acquisition programme on their Puntland acreage that could initially see them shoot 5000 square kilometres over the Dharoor concession. The wells alone will cost about $25 million.

Extra seismic is not needed on the Nugal concession, where drilling will begin on the seven targets revealed from data collected by ConocoPhillips.

The supermajor operated the concession before the civil war tore Somalia apart and forced its departure.

The drilling tender will be issued this week for Nugal. A contract is likely to be awarded by November and a rig mobilised in January.

Range director Peter Landau said: "Africa Oil is looking right now to recruit a drilling manager for the Puntland operation."

Range currently operates with 100% of the licence but Africa Oil is committed to spending $45 million in the next two years to earn an 80% stake in the licence for the two onshore basins, Nugal and Dharoor.

The company also operates the offshore portion of Puntland, a semi-autonomous province of Somalia which has been self-governing since 1998.

Landau said: "The offshore is a bonus to us but the real benefit is going to our 20% of the onshore, including areas formerly demarcated as Blocks 28 and 29, where Sproule International this month reported to us an upside potential of 10.4 billion barrels on today's data alone."

He said each of the targeted prospects has possible recoverable reserves of 500 million barrels of oil. The pair's debut well is likely to go down near ConocoPhillips' abandoned Kallis-1 probe on Block 28b.

Kallis-1 was drilled to 10,000 feet, short of a target depth of 14,000 feet.

ConocoPhillips capped it after hitting an over-pressured zone but never returned.

Drilling targets will be formally released in a few days by Range and Africa Oil, formerly Canmex.

The latter's Calgary office also played host to Puntland's director general of Minerals & Energy Hassan Mohamud to discuss moving the timetable forward.Mohamud will release a proposed exploration schedule after briefing President Mohammed Hirsi 'Adde' in Garowe.

•• Range Resources finally listed its share price on London's Alternative Investment Market on 23 October.

It closed at 33 pence on the first day of trade. In the same week, Range directors Peter Landau and Liban Boger head for Somalia to brief authorities in Puntland on its fast-tracked exploration programme.

© 2007, Upstream.