West Perth-based oil and gas explorer Range Resources Ltd has finalised joint venture negotiations with Canadian-based Canmex Minerals Corporation Ltd, for work on its oil and gas tenements in Puntland, Somalia.
The agreement will see Range receive a signature bonus of around $6.5 million, with a further $4.4 million due on production while the projects are operated by Canmex.
The full text of a company announcement is pasted below
Australian oil & gas exploration and development company Range Resources Limited (ASX: RRS) is pleased to announce the completion of all joint venture negotiations, formal documentation and regulatory approvals in respect of Canmex Mineral Corporation's ("Canmex") US$50m 80% farm in agreement in the Nogal and Dharoor Valleys in Puntland, Somalia.
As previously announced, Canmex will be the Operator of the on shore oil and gas exploration effort with an obligation to spend US$45m for an 80% participating interest in the two main basin areas in Puntland (the Noogal and Doharoor Valleys). The US$45m includes a minimum of 4 exploration wells to be completed (2 in each basin). Range will have a free carried interest until allexploration moneys are spent.
Under the terms of the joint venture, Range will now receive a signature bonus of US$5m with a further US$3.5m payable to Range upon commercial production.
The Company is extremely pleased with the finalisation of all joint venture matters and looks forward to significant exploration activity in Puntland over the coming months.
