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PUNTLAND OIL AND GAS POTENTIAL
Following the Company’s recent annual general meeting and various shareholder requests, set out in this announcement is a summary of the oil and gas potential of Puntland which provides further details on the Company’s Puntland project.
As previously announced, Range Resources Ltd’ (Range) has entered into an agreement that gives it a 50.1% controlling interest in the exclusive exploration and development rights to the Northern Somalian State of Puntland.
Puntland is believed to have
all the geological requirements to become a commercial oil-producing region. Somalia, and in particular Puntland remains one of the last under-explored countries that has a high potential for considerable reserves of hydrocarbons.
The earliest indication of oil in Somalia was a large oil seep southeast of Berbera and several other seeps in various locations within the country. However, early exploration concentrated on an anticlinal structural approach since this had met with success in the Arabian peninsula it took the oil companies a number of years to abandon this approach in Somalia. There is no evidence of large scale compressive folding in Somalia and the anticlines in the north of the country appear to be associated with the Miocene separation
Previous Oil and Gas Concessions
of Africa and Arabia and hence post-Mesozoic and early Tertiary oil and gas accumulations. Therefore, hydrocarbon accumulations must be sought in older structures and stratagraphic traps. Continued