Red Emperor, Range JV wins Somalian contract

Red Emperor Resources and Range Resources have announced that their joint venture partner Africa Oil has signed a contract for a drilling rig and third party services to drill the first well in Puntland in over 20 years.The contract is with Sakson Drilling and Oil Services, who will provide a 1,500 horse-power drilling rig to drill two exploration wells in the frontier state of Puntland, Somalia.The project is set to begin in the fourth quarter and will mobilise personnel and equipment imminently. Red Emperor said, "Drilling locations have been selected over two robust prospects each targeting gross best estimate oil in place of circa 900m barrels. The first prospect, Shabeel-1, is targeting in excess of 300m recoverable barrels of oil."Range Resources said that 60m barrels are attributable to it, while Red Emperor said that it has an option to participate in the second well.The Puntland Government and Dharoor Valley communities have assured they will assist and support the joint venture to allow the project to move forward safely and expeditiously, the company added. Africa Oil will hold its interest in the Puntland projects through its shareholding in Horn Petroleum, which recently completed a $41m capital raising.By 11.12am, Red Emperor's shares were up 2.79% at 23p, while Range's shares fell 3.57% lower to 13.50p.NR