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RRS - Range Resources

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Oh, and I almost forgot. In the technical agreement between RRS & MEPS (date 7 March 06) there is the 30th April option incentive deadline (1 of 3). A big incentive for MEPS to sign on the dotted line & start putting holes in the Noogal ASAP. So I'd probably expect some word on that side of things in the near future too (unless the whole place has turned to ****).
Aside from that the US Navy are now going to patrol the Somali coastline so I'd expect some increased scrutiny from companies interested in the off shore concessions - just take a peak at what Oil Search are up to across the Gulf of Aden off shore of Yemen.
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Free to those that can afford it, very expensive to those who can't. Withnail & I.
 
I was at work today...see they started trading again, and were up. It was good news then? What happened?
 
SandiK17
read yesterdays release re redrafting of the work agreement btw rrs & the Puntland gov, and then factor in the Letter of Intent from an 'oil major' (due to be released to the mkt today). Then have a look at the PDAC release (March 7th release) - it's there in B&W: before any oil expl can proceede they needed to rejig the Contract of Work and settle the Production Sharing Agreement (PSA) for the Nogal concession (projected deadline was the end of March). Done. Things are still a long way off but that's a major box ticked. So far so good & the speculators can smell something cooking.
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Free to those that can afford it, very expensive to those who can't. Withnail & I.
 
Dave
go to Garoweonline and check out the article 'Geddi opposes Puntland Agreement'. The Federal Transitional Gov wants to propose new Petroleum legislation and believes the Puntland Gov agreement with Consort & Range is restricted to exploration only, not actual drilling. There's also the thorny question of the rights of previous concession holders.
Looking over Ranges previous releases, the legal disclaimer at the bottom of the PDAC release indicates their belief that previous concession holders would have little chance of upholding their claims. I guess we are about to see how good that advice was. In the same release Range did state that they were assisting in the drafting of Petroleum legislation for the Puntland Gov. This would have to be done before drilling & exploitation commenced anyway. So it's a spat btw the local Puntland gov & the Transitional Federal gov.
Range would have to come out with some fantastic spin on this to avoid a hot potato bail out - especially regarding the previous concession point.
The same thing might happen with the legislation of mineral exploitation.
IMHO this is not necessarily negative news since it indicates that the Somalis are getting serious about accessing their mineral wealth potential. This all had to be addressed at some stage. The letter ends on a reasonably positive note re: dealing with RRS & partners once the legislation is in placs - perhaps it's a done deal with RRS. On the other hand, perhaps the likes of CONCO etc are pulling out their big guns.
What's your take on the matter?
 
Thanks Archinos

Ahh yes, the joys of doing business in a feudal state. Inter governmental rivalry, plus a few warlords wanting to excercise their power, or more likely Geddi jockeying to consolidate his power and that of his government

“The right to conduct activities for the utilization of subsoil natural resources in Somali Republic is reserved to…the Transitional Federal Government.
Click to expand...
Sounds more like a bit of healthy chest thumping by the alpha male, but may delay Range's plans somewhat.

With Geddi promising legislation in the coming months, I suppose he does not want to be painted into a corner by existing agreements, and of course he could be angling for more favourable conditions than presently in place.

Let us see what the spin doctors from Range can come up with by the resumption of trade on Tuesday morning .... it better be good or the rats might be off this ship before I've even got my luggage packed.

Cheers ... Dave
 
I feel there's also a good chance that the letter is a sham in a last ditch effort to get publicity for what certain parties believe is the exploitation of puntland. The site has had a dubious past and is registered in Australia, could very well be disinformation.

Was on a chat forum last nigth(thursday) and someone downramping posted the letter in 2 parts on geocities but they were unviewable because the personal bandwidth limit had been exceeded. The letter was then posted today in 2 parts on the site.. So how does a site possibly being run out of melbourne? get the letters before range or if they got them at the same time why was range not in a trading halt before trade today... i'm guessing its bs.. something fishy with that site and the information hitting the forums before trade today. The downrampers are obviously connected to that site, the question is are they actually connected to the information because it would appear thier right in thier if they can get stuff sent to range before it gets thier :/.. who knows

gl to holders!.. i don't have the balls for the buy and hold (sovereign risk) but im sure there will be plenty on the sidelines waiting to pull the trigger if things look secure.. some great quick trades coming id imagine..

interesting shanadigans..
 
Check out the latest news things are really getting interesting. Everyone wants a piece of the action. 2 major oil companies may now be interested in puntland!


http://www.somalilandtimes.net/sl/2005/225/1.shtml

Minerals Minister Never Been To Houston

Hargeysa, Somaliland, May 13, 2006 – On the occasion of his return to Hargeysa from a long trip abroad, the Somaliland minister of Minerals and Water, Qasim Sheikh Yusuf, told reporters on May 2, 2006 that he visited the United States, Britain and Norway to promote oil exploration in Somaliland. However prominent members of the Somaliland community have confirmed to the Somaliland Times that minister Qassim Sh. Yusuf has actually never been to the US.

Despite his claim of having visited Houston during the 3 rd leg of his tour, he actually didn’t go there at all. However the minister did visit London and Stavanger, Norway.

In Norway Mr. Qassim Yusuf signed an exclusive agreement with a Norwegian oil firm known as TGS to conduct a seismic survey in the country. It wasn’t known why Mr. Yusuf’s ministry didn’t ask for an international tender for carrying out the seismic work.

The minister of Minerals and Water left Hargeysa in March and remained stuck in Addis Ababa for more than 20 days.

Meanwhile the Korean National Oil Company (KNOC) bought about 75% of oil fields located in Sool and Sanag for a 10 million dollar signature bonus and 25 million dollar farm-in. The KNOC concluded the deal with Range Resources which on last year had obtained concessions from the Puntland authority to explore for oil and minerals. The agreement gives Range exclusive rights to oil and minerals in Puntland and parts of Somaliland including blocks 28 and 29.

The Somaliland government has so far declined to preserve the territorial integrity of the country’s eastern borders being claimed by Majertenia.

Source: Somaliland Times
 
Tarnor
I'll take on board your comments about there may be something fishy about the flow of information from Garoweonline, however up till now I've found the little bits of info I've been able to tease out from their reports have been quite useful, if not resonably accurate.
And for all those interested (Redroo!), it's getting red hot. Check out the letter of response from the Puntland Gov. They've spat the dummy and have withdrawn support for Geddi as PM. Whoa. Geddi is having trouble on all sides now, given the recent flare up in Mogadishu, despite grabbing recent local & international recognition.
Interesting to note that in the letter Pres MM starts off with:
"I refer to your letter dated 18 May 2006 (which despite being addressed to me as the President of the Government of Puntland was never received) regarding several assertions purported to be made by the you in respect of the Transitional Federal Government’s view of the contract of work entered into between the Puntland Government, Consort Private Limited and Range Resources Limited."
Whadda you think Tarnor? Set up?
If the situation is real, it sounds like this was a complete surprise (despite the legislative need)- I was wondering if the 'secret mission' by a family relative of Puntland Pres MM to Aust (reported previously) was an envoy discussing these latest developments... May be not.
Does Puntland have the capability to go it alone in defiance of the TFG?
Brinkmanship?
Unless this is cleared up quickly, it's a definite sell.
 
I just add some comments to this discussion regarding Puntland and the rest of Somalia.
Somalia is pretty much broken up into 3 distinct areas and they are Somaliland and Puntland in the north with the south being called Somalia.
Puntland and Somaliland have had alot of automy from the rest of somalia since the breakdown of the somalia govt back in Jan 91. Whilst the south of Somalia was racked by factional fighting and femmine the north was relatively stable.
Somaliland and Puntland have clashed over border disagreements.
Puntland has had a functioning govt since 1998.
The Somalia Transitional Federal Govt (TFG) effectively has no control over any of the country.
Somaliland wants to be recognised as an independant country, whilst Puntland says they will remain part of Somalia but as an autonomous state within Somalia.
China has recently donated 6 million to the TFG (read china is trying to gain mining concession in this country as well).
There is talk that America is looking at going back into Somalia to clean out the AQ cells which have located themselves in the lawless south.

My take on things is the mining will be done in Puntland and Somaliland regardless of what the TFG says. The TFG have no control over somalia let alone the Puntland and Somaliland.

Here is a recent article I found today that says Puntland severs ties with the TFG.
http://www.iol.co.za/index.php?from=rss_Africa&set_id=1&click_id=&art_id=qw114824628994B254
 
Thanks Kithigh
the more minds on this the better. For my part I'd much rather see them get their act together rather than continue with factional fighting (I'm left holding the baby for now...). For natural resource exploitation to commence however, I would think a much more stable environment to lure the explorers/developers is desirable. Perhaps that wont be too much of a concern for the likes of the Chinese & Koreans (worth the risk?).
Interesting to note that Somaliland has recently signed that Norwegian mob to start seismic surveying (Somailandtimes.net). Given that the letter of consent from PM Geddi 02/11/05 (cleverly?) stated 'surveying' that might led to ("materialising") "the exploration, exploitation and marketing", perhaps Puntland did rush it & overstepped the mark as far a the TFG is concerned. Somaliland on the other hand would be in a stronger position to sit this one out and wait till the dust has settled and the TFG legislation was in place.
Also interesting to note the statement from the Punt Admin regarding the expiry of previous concession agreements, according to legal opinion. It would be better for them if they get their Petroleum Legislation in place ASAP.
Whatever the case, I bet you Range are earning their overtime right now.
Can't wait for the next round of responses.
For the conspiracy theorists out there: Curious how the Garowe online Geddi letter was a reasonably high quality colour scan; cf Ranges B&W faxes of previous letters. The source must be reasonably highly placed?
Also a general note on Somalia. I saw the ABC series "Postcards from places that do not exist" (or something like that) & there was an episode on Somalia. When I saw Mogadishu I though hell, what a crock of ..... Then when they crossed into Somaliland it was like a breath of fresh air (for the presenter too...). Real progress by comparison. My understanding was that Puntland was equally progressive. Here's hoping they can get it together.
cheers
 
I don't know how long it will take the south (Somalia) to get there sh%t squared away, maybe they never will. But the north is fairly stable and as mining companies have proved in other parts of Africa if there is enough money to be made then they will go in and get the stuff out of the ground. I work in the private security field and have heard along the grape vine of a proposal to train up a local protection force in Somalia. I wasn't told which area it was going to be, but by reading a bit and filling in the blanks it looks like it would be in Puntland or Somaliland. Will be interesting to see if this goes ahead, and who is behind it. Then you would see Puntland have an even bigger reason to break away from the south. In my opinion they would be better off declaring themselves independant from the rabble in the south and moving towards looking after their own interests. You have to remember also that most of these people don't have a strong sense of nationalism, its more to do with clans and tribes.
 
You might be the one to ask then Kitehigh (sorry for the typo in my previous post)
How reliable do you think Garoweonline is? In reference to the 'chinese whispers' you've been hearing, a May 12th article on Garoweonline states that "a reliable source blah blah blah.. The Puntland State government is actively recruiting militias for a “special unit”...blah...to provide private security for a foreign company that signed a controversial natural resource exploration deal with the Puntland administration last year. The “special unit” militias will come directly under the Office of the Presidency and are independent of both the Puntland police and Darawish (Frontier) military forces."
The mob that wrote the article pour on the sinister undertones with spades, and speculate as to the motivations behind said development. Does this tally with you and if so, are they reliable in their reporting?
Oh, and I'd be really surprised if we get any new release tomorrow - more likely they'll ask to be suspended and buy themselves more time to sort things out.
cheers
 
I have no idea about the reliability of Garoweonline, I only visited their site after you mentioned it.
The reports you mentioned which talks about a special force being raised does tie in with what I heard. But I think range will have to tread very carefully as it needs to make sure it doesn't be seen to be raising its own private army. There is an arms embargo on the entire somalia country, but this doesn't stop the weapons from getting in when needed.
In regards to the milita being raised and coming under direct control of the presidents office, pretty standard practice in alot of African/ middle eastern countries.
Bloody hard work operating in a shattered country so will be interesting to see how things pan out.
I don't hold any shares in this company but am interested in the area and the developments are they come along.
 
Here's some background to the TFG's Petroleum Legislation, found by following the "create a credible petroleum regime" link (http://www.theglobeandmail.com/servlet/story/LAC.20060510.LAW10/TPStory/Business) in the Garoweonline article "resource conflict escalates over Horn of Africa" to a 10-5-06 article in globeandmail.com article.
As follows:
{Far away from the Somali government's shaky temporary base, Baidoa, a place so devastated by war and famine it is called "city of death," a dozen advisers met in a Jakarta penthouse two weeks ago to draft a legal rescue mission for the African country's vast and unexplored oil and gas basin.

Advisers to Somalia's President Abdullahi Usuf Ahmed convened the meeting in the distant Indonesian city because government offices in Baidoa are still being converted out of a former food warehouse. The African country had to go even farther to find legal experts for the session.

Flown in from Calgary to lead the extraordinary gathering was Jay Park, a partner with Macleod Dixon LLP, who is ranked among the world's top oil and gas lawyers. Mr. Park and his partner Thomas Valentine have been hired by Somalia's fledgling government to design a credible petroleum regime that can attract investors to the war-torn, but oil-rich region. If all goes according to plan, the new laws will be in place next summer.

"This is one of the poorest countries in the world, but it may be sitting on some of the greatest oil and gas treasures. We need to ensure that Somalia can take advantage of its resources without succumbing to the resource curse of corruption, conflict and violence," Mr. Park said last week in his Calgary office.........................."The changing price of oil is making a lot of governments question whether they are getting enough of the pie. The challenge is to help them find a balance between what they should get and what investors need to justify spending money on the projects," Mr. Park said.
.........................In the old days, developing nations were so starved for cash that they were content to accept fixed payments or royalties in exchange for handing oil and gas rights to foreigners. But after watching foreigners pocket most of the profits from soaring petroleum prices, many states are abandoning these so-called "concession systems" and replacing them with "production sharing," "joint venture" or "service contract" systems that give more control and profits to local governments.

Countries such as Somalia, Pakistan and Vietnam have hired Mr. Park to help them build modern petroleum laws, investment contracts and regulatory systems from scratch. .........................In each country Mr. Park's biggest challenge is to craft laws that reassure foreign investors without triggering a political backlash.}

I'd say he's done a pretty fair job on that last point...
 
Now that I've read the announcement I still unsure as to their chances. Sure strategic board appointments look like headway, but their response to the PM's decree to cease drilling etc is luke warm at best. If Garowe online is reliable, then the TFG Info minister has already backed up the authenticity of the letter. So there's no real debate there. That still leaves a standoff & that last bit by RRS re Puntland support for the TFG is crucial & therefore RRS is committed to the Contract of Works agreement just doesn't make sense - or am I missing something?
On a minor point I wish they'd proof read their releases...
The last section re acquisition of old data is old news - weren't MEPS supposed to come through with those goods?
I guess there may be a hint re current negotiations with JV or farm in partners? Are they still referring to KNOC or some other entity?
Any thoughts?
ps I lightened up a bit this morning but am still holding some.
 
The plot thickens
turns out that Mr Liban Bogor is Pred Muse's nephew (Liban Muse Bogor): source Garoweonline. I guess that is what was meant in the 25/5/06 announcement stating:
"utilise his considerable network in Puntland and Africa to further Range's exploration and development in Puntland".
He's the dude that's been doing the rounds in Melb as of late.
 
RRS off and running again. Agreements in hand apparently. It'll be interesting to see if the KNOC are still on board, since the 45 day cooling off period is probably due sometime next week. Anyone with info on this timeline?
I take it that 'while respecting prior agreements' does not refer to previous concession leases, but refers to RRS agreements?
Oh to have been a fly on the wall during these latest talks.
'Information security consultants' ? Sound like mercs with keyboards and jackboots. As for Garoweonline, their reports as of late might be skewed, but there were some jems of info to be had (re official discussions) on Monday & this morning.
 

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