Range signs up a Puntland
partner
Jamie Freed
January 24, 2007
RANGE Resources said yesterday it had finalised a joint
venture that could hand control of 80 per cent of its main
oil and gas project in Somalia's semi-autonomous state of
Puntland to a little-known Canadian company.
Canmex Minerals, a company with a $C60 million ($64.7
million) market value on Toronto's Venture Exchange, has
agreed to spend $US50 million ($63.4 million) on exploration
within three years in exchange for an 80 per cent interest
in Range's two main oil prospects, pending Canadian
regulatory approval and final documentation.
If Canmex can begin commercial production in Puntland -
which has never produced any oil or gas - it will pay Range
another $US3.5 million. Otherwise, Range simply avoids
spending any of its own money on exploration until the $US50
million limit is reached.
Range struck the deal with Canmex after a more favourable
provisional agreement with the Korea National Oil Company
fell through last year.
Under the terms of the Korean deal, Range would have
received a $US10 million sign-on fee and the Koreans would
have earned 75 per cent of the area after spending at least
$US25 million in two years.
A Canmex representative in Vancouver could not comment on
the deal yesterday because it was not expected to be
announced to the Toronto Venture Exchange until early this
morning.
But Canmex's latest accounts reveal the company had only
$C3.5 million of cash on hand at the end of September. It
has not publicly stated where it will raise the $US50
million of exploration funds needed. Canmex stock is
relatively illiquid; since October there have been several
days when not a single share changed hands. It also does not
appear to have a company website.
In an announcement to the Australian Stock Exchange
yesterday, Range said it had appointed a UK broking house
specialising in natural resources in emerging markets to
proceed with a listing on London's Alternate Investment
Market. Range said it would need to raise a minimum $US20
million in an institutional placement as part of the
listing, but did not specify why the funds were needed.
Range representatives were not available for comment
yesterday, but in a statement, managing director Mike Povey
said in Canmex it had "found an ideal partner to
aggressively progress the exploration effort".
Range Resources shares closed 0.2c, or 6 per cent, lower at
3.2c yesterday.
Sources:
http://www.smh.com.au/
JANUARY 23, 2007 - 09:00 ET
Canmex Announces Formal
Signing of Production Sharing Agreement in Puntland, Somalia
VANCOUVER, BRITISH
COLUMBIA--(CCNMatthews - Jan. 23, 2007) - Canmex Minerals
Corporation ("Canmex" or "the Company") (TSX VENTURE:CXM) is
pleased to announce the formal signing of the Puntland
Production Sharing Agreement ("PSA") between the Government
of Puntland, Range Resources Limited ("Range") and Canmex.
The agreements cover highly prospective basins in the Nogal
and Dharoor Valleys in the state of Puntland in northern
Somalia. The Nogal and Dharoor basins are considered
world-class exploration plays with a petroleum system
geologically similar to and formerly contiguous with those
within the Republic of Yemen.
Pursuant to a Memorandum of Understanding signed between
Canmex and Range, Canmex has the right to acquire an 80%
interest in the licenses and operatorship of the Nogal and
Dharoor projects in consideration for the financial
commitment over a six year period of US$50 million in
exploration expenditures and the payment to Range of an
additional US$3.5 million upon commencement of commercial
production.
A comprehensive exploration work program is proposed in
respect of each exploration area, which will include:
a) Geological fieldwork;
b) Acquisition of surface high resolution geochemical
surveys;
c) Reprocessing of prior 2D seismic (up to an aggregate of
1,000 line km);
d) Review and integration of all geophysical and geological
data; and
e) Drilling of four exploratory wells (over the first
(minimum two) and second exploration periods for both
areas).
The PSA signing was attended by His Excellency, Puntland
President Hersi, Director General of the Puntland Energy and
Mineral Resource Agency, Hassan Mohamoud, Range executives
and Canmex President and CEO Richard Schmitt.
His Excellency President Hersi commented, "Range and
Puntland have been working together in the past few years
and I am very happy with that, Canmex has worked with Range
and I am very happy with the deal. I honestly believe our
country is rich in natural resources and it requires people
to do the work. The big oil companies were previously all
exploring in my country 20 years ago when I was the Governor
of the area and believe an oil discovery was near. I have
heard good things about Canmex and the people involved and I
look forward to the commencement of work as soon as
possible. Puntland has always been secure and it looks like
the other parts of the country are now settling down. I am
sure that you (Range and Canmex) will succeed."
Rick Schmitt, President of Canmex, commented, "We very much
look forward to working in the State of Puntland for years
to come and greatly appreciate the warm, professional
hospitality extended to us. The signing of the PSA
represents the passing of a major milestone towards
beginning our work program on these truly world-class
exploration assets and we look forward to great success."
Range Resources Managing Director Mike Povey commented,
"Since Range's first involvement, the company has been aware
that in order to explore successfully for hydrocarbons in
Puntland, it required a joint venture partner with a strong
technical team, solid financial backing and preferably
experience in the region. In Canmex and the personnel
involved with the company I believe we have found an ideal
partner to aggressively progress the exploration effort. The
signing of the Production Sharing Agreement marks the
beginning of a partnership between the Puntland Government,
Range and Canmex. I am pleased that the joint venture
negotiations have progressed rapidly and resulted in an
agreement that all parties are happy with and that the
exploration commitment made by Canmex hopefully will result
in the discovery of large commercial quantities of oil that
can be developed for the benefit of the Somali people. I and
the rest of the Board look forward to working with Canmex
and extending our relationship with them and the Puntland
Government in what should be a very exciting time over the
next few years."
The foregoing transactions are subject to a number of
conditions including negotiation and finalization of
definitive binding agreements between Canmex and Range,
including a Joint Operating Agreement and binding agreements
among Canmex and Range and the Ministry of Energy of
Puntland and all requisite regulatory approvals.
In respect of the conflict in southern Somalia, the Company
is closely monitoring events but at this stage, can advise
that the hostilities have not affected to date the Company's
activities in the state of Puntland located in northern
Somalia.
Forward-looking statements: This press release contains
statements about expected or anticipated future events and
financial results that are forward-looking in nature and, as
a result, are subject to certain risks and uncertainties,
such as political risk, general economic, market and
business conditions, the regulatory process and actions,
technical issues, new legislation, competitive and general
economic factors and conditions, the uncertainties resulting
from potential delays or changes in plans, the occurrence of
unexpected events and management's capacity to execute and
implement its future plans. Actual results may differ
materially from those projected by management.
ON BEHALF OF THE BOARD
Rick Schmitt, Director
To view the accompanying map, please click on the following
link:
http://www.ccnmatthews.com/docs/cxm0123.jpg
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.
CONTACT INFORMATION
Canmex Minerals Corporation
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
Source:
http://www.ccnmatthews.com
Range Resources signs deal in Somalia
Tuesday Jan 23 13:45 AEDT
Oil and gas explorer Range Resources Ltd is proceeding with
a $US50 million farm-in deal and plans to list in the UK
after signing a production sharing agreement with the
government of Puntland, a semi-autonomous state in Somalia.
The production sharing agreement (PSA) with the Puntland
government was signed by Range Resources and Canmex Minerals
Corporation, which is listed in Canada and has taken up the
farm-in deal.
The PSA relates to two main exploration areas, the Nogal and
Dharoor Valleys, and as part of its 80 per cent farm-in
Canmex will conduct an exploration work program over two
three-year periods.
Range Resources managing director Mike Povey said the deals
are significant milestones for the company.
"Since Range's first involvement, the company has been aware
that in order to explore successfully for hydrocarbons in
Puntland, it required a joint venture partner with a strong
technical team, solid financial backing and preferably
experience in the region," he said.
"In Canmex and the personnel involved with the company I
believe we have found an ideal partner to aggressively
progress the exploration effort."
Range Resources has appointed a broker to proceed with its
planned listing on the London Stock Exchange's Alternative
Investment Market, which will see it conduct a $US20 million
institutional placement.