Range Resources Ltd – Puntland Drilling Contract Signed

Range Resources Ltd – Puntland Drilling Contract Signed

Puntland Drilling Contract Signed - Drilling Set for Q4, 2011

Highlights:

  • Africa Oil signs landmark contracts for a drilling rig and third party services to drill first well in Puntland in over 20 years  
  • Mobilization of required personnel and equipment to commence to allow for spudding of first drill target, Shabeel-1 (with targeted best estimate Prospective Resources of 300m bbls), to spud in Q4, 2011

  
International oil and gas exploration, development and production company, Range Resources Limited ("Range" or "the Company") is pleased to announce that its joint venture partner and PSA operator Africa Oil Corp has signed a landmark contract with Sakson Drilling and Oil Services who will provide a 1,500 horse-power, top drive drilling rig to drill two highly anticipated exploration wells in Puntland, Somalia.

The majority of the drilling-related third party service contracts have now been entered into, with the mobilisation of required personnel and equipment to
commence, which is expected to allow for the spudding of the first well during the fourth quarter of this year.

Drilling locations have been selected over two robust prospects targeting total gross best estimate Prospective Resources of 675 million barrels of oil (with
135 million barrels net attributable to Range). The first prospect, Shabeel-1, is targeting Prospective Resources of in excess of 300 million barrels of oil
(with 60 million barrels net attributable to Range).

From  Range's  perspective,  the  Puntland  Government  and  key  Dharoor Valley  clans  fully support the project, and will assist  to  ensure  the drilling  project  moves  forward  safely  and expeditiously.

Africa Oil will hold its interest in the Puntland Projects through its shareholding in Horn Petroleum, who recently completed a $41m capital raising.

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