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ANNUAL GENERAL MEETING 28 NOVEMBER 2005. Range Resources Limited is an exploration based company currently focused on a number of minerals and hydrocarbons in the following key regions: Puntland (Somalia); Peru; and Western Australia. ASX Code: RRS RRSO. Puntland

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28 NOVEMBER 2005

Range Resources Limited is an exploration based company currently focused on a number of minerals and hydrocarbons in the following key regions:
  • Puntland (Somalia);
  • Peru; and
  • Western Australia.





  • Exclusive exploration rights to all oil,gas and minerals of the Northern Somalia State of Puntland. Land area > 200,000km2
  • Major oil companies explored the area for hydrocarbons in the late 1980’s
  • Exploration was curtailed by civil unrest in 1991
  • Northern Somalia region has all geological characteristics to host major oil and gas deposits.
  • Under-explored region with huge potential for hydrocarbons.
  • Mineral potential unexplored

Political Background

  • Puntland considers itself an autonomous State within Somalia
  • Democratic elections held in January 2005 resulted in a smooth transition of power
  • Puntland has no plans to become an independent nation at this time.
  • Political situation in Puntland is stable with a respected President with no civil unrest like that currently affecting Mogadishu

The Agreement provides Range with:

    • Exclusive explorations rights to oil and gas and other mineral deposits for a minimum term of four (4) years with options to extend.
    • A 50.1% controlling interest with the remaining 49.9% held by Consort Private Ltd the concession holder.
    • The ability to define and allocate exploration leases over the State of Puntland.
    • The right to negotiate with third party Farm-in/Joint Venture partners.

Previous Exploration

  • Map shows previous Concession areas (1990) and holders
  • Estimated exploration expenditure by previous companies in excess of US $150M
  • Conoco’s exploration work included >20,000 line km of geoseimic work and several wells
  • Discovered a buried Rift Valley in the Nogal Valley

Exploration Data

  • Limited data in Somalia following burning of Mines Dept in Mogadishu
  • Some detail e.g Conoco Oil Prospect summary sheet survived
  • Sheet shows geological reasons for drilling Prospect 28 B Well
  • Range currently in process of obtaining more data

Block 28

  • Conoco’s exploration effort showed a complex buried rift valley systems centred on Block 28
  • Block 28 and 29 showed several major structural features with all geological features right conditions for potential oil trap sites
  • Structures were thought analogous to the North Yemen Alif oil field newly discovered in 1985

Block 28 Prospects

  • Several closed structures were identifed between 10 and 20 km long
  • As far as Range can determine none of the targets 28/B,G,S and 29/P were drilled
  • Prospect 28/B was targeted for a drill well in 1991 at an estimated cost of US $8.3M

In Prospect 28B Conoco postulated two reservoir targets in well

  • Most likely target reserve >500MBO recoverable


  • Considerable interest in the oil potential from major companies particularly the former Block 28.
  • Range will initially seek a major JV partner to explore selected undrilled prospects in Block 28. Range will also retain certain areas for exploration.
  • Continue to acquire geophysical data from previous oil and gas exploration work and seek JV partners for remaining oil potential areas both onshore and offshore
  • Undertake a General Exploration Survey of the entire state to form a modern exploration database of mineralised structures and occurrences

What was the view in 1991?

  • LA Times Article quotes:
  • “Conoco’s tireless exploration work has yieIded most encouraging prospects”
  • “…it’s there.There is no doubt there is oil there” Thomas O’Connor Principal petroleum engineer for the World Bank
  • “No one doubts there is oil in Somalia. The only question How much?”

Range - Consort Relationship

      • Range to facilitate the exploration and commercial development of the State’s natural resources (farm in, joint venture) to bring the commensurate benefits to the people of Puntland and shareholders of the Company.
      • 50.1% farm in of all minerals and hydrocarbons (on and offshore). Range and Consort to farm out portions of their respective interests as one block to third parties.

Transaction Legitimacy

        • Formal approval from Puntland Government [Contract of Work

(Act of Parliament) and Commitment Letters] and Transitional Federal Government (Formal Correspondence approving and supporting the Range / Consort Contract of Work)

        • Legal advice on previous concessions and legitimacy of government approvals.
Contract of Work – Puntland Government
  • Exclusive rights to carry out a general survey and exploration for, and exploitation of, “subsoil resources in the Contract Area” (on and off shore).
  • Rights under the Contract of Work to split Contract Area into separate Contract of Works in order to manage third party farm ins / joint ventures.
  • Standard contract of work with respect to exploration and development of minerals and hydrocarbons.
  • Govt Royalties – vary between 5% - 10%.
Corachapi Uranium – Peru
  • Acquisition of 80% of the issued capital of Somierlco (Somirelco being the holder of the Corachapi deposit);
  • In addition to Corachapi, Range will also have an 80% beneficial ownership of three additional Mining Concessions in the same district taking the total concession area to 1,600 hectares.
  • JORC inferred resource of 2,400 contained tonnes (1.6m tonnes at 0.15% U3O8 )
An independent geologists report has confirmed that significant mineralisation exists in 3 zones at Corachapi.
  • The Company is embarking on a drilling campaign aimed at increasing the size of the resource and identifying further mineralisation.