31 January 2008
QUARTERLY REPORT FOR PERIOD ENDING 31 DECEMBER 2007
The Board is pleased to provide the following commentary to be read in
conjunction with the Appendix 5B.
* Admitted to trading on the AIM market of the London Stock Exchange
* Completion of seismic reprocessing program by Africa Oil
* Completion of Rights Issue and Placement to Option holders
A major highlight during the quarter was the successful admission of the
Company's shares onto the AIM market of the London Stock Exchange. The AIM
listing will significantly enhance the profile of Range, providing
international investors easier access to Range's securities and broadening the
potential investor base of the Company for capital raisings that may be
required to support its oil and gas and mineral exploration and development
activities in Puntland.
With this in mind, the Company completed a placement of approximately 18m new
ordinary shares at an issue price of 22 pence each (AUD$0.50) through
London-based broker Fox Davies Capital Limited. New shareholders were targeted
throughout the United Kingdom/Europe to broaden the shareholder base and
enhance liquidity on the AIM market. Gross proceeds of approximately £4m were
raised which will be used to fund ongoing exploration costs in Puntland and
working capital requirements of the Company.
PUNTLAND OIL EXPLORATION
During the quarter Africa Oil Corp. completed a comprehensive seismic
reprocessing program, including review and integration of all geophysical and
geological data on the Nogal Block. The program validated and refined the
previous exploration targets established by the former concession holder and
enabled Africa Oil to proceed with the proposed drilling program. Africa Oil is
Range's joint venture partner and operator on the project, earning an 80%
interest in the Nogal and Dharoor Blocks in Puntland, through spending US$45m
on 4 wells. Africa Oil is currently finalising the drilling contract for a rig
capable of drilling the deep holes (4-5,000metres), that may be required to
reach the potential reservoirs in Jurassic formations in the Nogal Basin. It is
also envisaged that reservoirs will be found in Cretaecous sandstones, given
that in Yemen, oil has been found in both horizons.
Currently Africa Oil has purchased wellheads and tubulars required for all 4
wells. It is anticipated that the drill rig will be mobilised in March 2008
spudding the first of the two back-to-back wells in Nogal soon thereafter.
In addition, contract quotes have been obtained for a 2,600km seismic
acquisition programme in the Dharoor Valley. It is anticipated that this work
will begin by late March 2008. A 2 well drilling program is also being planned
for the Dharoor Block to follow the drilling campaign at Nogal.
Mr Paul Colyer strengthens the project's technical team by joining Africa Oil
as Drilling Manager. Considered one of the top Drilling Managers in the
industry, he brings 35 years of experience to the Company. Mr Colyer has spent
the greater part of his career at Occidental Petroleum and has drilled and
managed drilling programs in both Yemen and Somalia.
Range is also in the process of finalising the commencement of up to 15,000km
of 2D seismic for offshore Puntland (100% Range) with a proposed start date of
PUNTLAND AND THE TRANSITIONAL FEDERAL GOVERNMENT
During the quarter both the previous Prime Minister and Energy Minister of the
Transitional Federal Government ("TFG") of Somalia resigned their posts with
one contributing factor being the proposed introduction of a TFG National Oil
Law which was contradictory to the existing regime in Puntland.
The Puntland Government is in negotiations with the TFG President, the new
Prime Minister and new Energy Minister with regards to a joint Puntland/TFG
development agreement of natural resources which ultimately preserves Range's
(and Africa Oil's) current agreements with the Puntland Government and
Parliament. Range is confident that a formal agreement will be reached in
COMPLETION OF RIGHTS ISSUE AND PLACEMENT TO OPTION HOLDERS
During the quarter the Company completed a placement to holders of listed
options (as at 1 August 2007) of one new option (unlisted $1.00, 1 October
2008) at a subscription price of 1 cent. Simultaneously a 1 for 8 issue to
existing shareholders of 1 option ($1.00, 1 October 2010) for every 8 shares
held at a subscription price of 1 cent was offered. The funds raised being
$736,224.39 will be used for the Puntland project.
The Company held its Annual General Meeting on 2 November 2007 whereby all
resolutions set out in the Notice of Meeting were passed on a show of hands.
31 January 2008