Zooming into the Past

Somali govt meetings pave way for Range exploration

June 01, 2006

WA Business News

Diversified resources explorer Range Resources has announced that as a result of meetings between the Transitional Federal Government of Somalia and the Puntland state government, all parties will work together to allow Puntland to develop its natural resources.

Importantly for Range, the agreement recognises the existing work in place and allows Range to fast track its planned mineral and hydrocarbon exploration and joint venture/farm out program in the Puntland region of Somalia.

Key terms of the memorandum of understanding signed by Somali government and Puntland state authorities include:

a. The continuation of exploration and production of minerals and oil in Puntland while respecting prior agreements. The parties will also look at using a block system to encourage other third parties to enter into Puntland (note that this is consistent with Range's current strategy of retaining identified mineral and hydrocarbon areas and returning residual land holdings.)

b. The governments to start discussions regarding how to divide royalty and other interests before the production stage of the minerals and oil in Puntland state are reached

c. The formulation of laws regarding exploration, production, administration and shares of the resources in the sup soil such as minerals, oil etc. The formulation of such laws will be subject to collaboration between the governments

d. Both governments to create an environment of cooperation and communication through official channels; and

e. The parties to work together to prevent all that could jeopardise their cooperation which could lead to mistrust.

THE FULL MEDIA RELEASE APPEARS BELOW.

TFG and PUNTLAND GOVERNMENT UNITE IN SUPPORT Further to the Company's announcement last week in relation to recent communications from the Transitional Federal Government of Somalia ("TFG"), the Company is pleased to advise that following key meetings of representatives of the TFG and Puntland Government in Bosaso this week, both governments have agreed to work together in allowing Puntland to explore and develop its natural resources.Importantly for Range, the agreement recognises the existing Contract of Work in place and, in the Board's opinion, now allows Range to fast track its planned exploration and joint venture / farm out program for Puntland's mineral and hydrocarbon assets. Key terms of the MOU signed by His Excellency President Hersi of Puntland and Acting President and Speaker of the Parliament of the TFG, Mr Sherif Hassan Sh. Aadan include:

b. The governments to start discussions regarding how to divide royalty and other interests before the production stage of the minerals and oil in Puntland state are reached.

d. Both governments to create an environment of cooperation and communication through official channels

e. The parties to work together to prevent all that could jeopardise their cooperation which could lead to mistrust.

RECENT INTERNET ARTICLES

The Company has been aware for some time of websites posting false and misleading information regarding, the Company, the Company's activities in Puntland and the actions of the Puntland Government. These postings and false reports are not supported by the vast majority of people in Puntland and, in fact, do not emanate from within the country but from a small minority outside the country. These postings have increased recently culminating in false reports attributed to the BBC's Somalia Service. The Company has not only informed the BBC of the false reports attributed to them but also appointed information security consultants to track down the hosts of these sites with a view to commencing legal action.

It is the Company's view that the increase in these negative, misleading and/or false reports is as a result of Range's success and credibility in actually commencing exploration activities in Puntland and demonstrating the vast mineral and hydrocarbon potential that the region holds. The negativity is an attempt to destabilise the agreements currently in place in the hope that if successful these individuals may subsequently benefit themselves from other parties who are seeking to exploit opportunities in Puntland. The self-interest shown from a small minority with possible vested interests whilst irritating, does indicate that the individuals involved are fully aware of the enormous potential referred to above and the flow on benefits for the social and economic infrastructure of Puntland. We urge our shareholders to be wary of information posted outside of official Puntland and Company sources. The Company looks forward to updating shareholders shortly on further key developments. If you would like further information, images, or wish to conduct an interview with representatives from the company please let me know.

Somali government, Puntland restore ties, agree on cooperation

May 30, 2006

The regional administration of Puntland and the Transitional Federal Government of Somalia [TFGS] this morning signed an agreement at the [Puntland] presidency [in Garoowe].

The Speaker of parliament signed on behalf of the government the agreement that consists of five provisions and the regional administration of Puntland was signed for by the regions leader, Gen Ade Muse Hirsi.

The aim of the agreement follows a rift that has recently surfaced between the TFGS and regional administration when the prime minister of the TFGS Ali Muhammad Gedi regarding the mining of minerals and the exploration of oil that the regional administration had gone into a deal with foreign companies.

The provisions of the agreement is as follows:

1. The regional administration of Puntland has withdrawn its statement of lacking confidence in the prime minister of the TFGS and that they now have confidence in the premier.

2. That the mining project will continue as planned, the mining of minerals and the exploration of oil in Puntland and to respect agreements reached between the two sides on these issues. The oil exploration and mining of minerals will not be postponed because one crop and will be implemented in phases.

3. The two sides will start negotiations on sharing of the wealth before the production of the oil or minerals.

4. To prepare legislation on mining, production, adminstration and sharing of the resources both in land and sea including minerals, oil and others and the legislation to be jointly discussed.

5. The two sides to create cooperation and consultation and coordinate communication between the two in the official manner.

This is the second time an agreement of this kind has been signed by the TFGS and the Puntland administration.

Source: Radio Midnimo, Boosaaso, in Somali 1030 gmt 30 May 06

Range Resources Queries Somali Gov’t Letter Denying Puntland Exploration Rights

Australian Company News Bites

May 25, 2006

SOURCED FROM INFORMATION LODGED WITH THE AUSTRALIAN STOCK EXCHANGE

Range Resources Ltd is trying to verify the origins of a letter to the Puntland state government, purportedly from the Transitional Federal Government of Somalia, which claimed Range had no right to explore and exploit sub soil resources in the region.

The letter, said to have originated from the Prime Minister’s office of the TFG, said the Puntland government had no authority to grant mineral, oil and gas rights to Consort Private Ltd and Range, and that only the TFG had authority to grant such rights.

The letter contradicted previous written support from the TFG Prime Minister's office for Puntland and Range to explore and mine Puntland resources.

The contents of the letter also contradicted an international law regarding the development of mineral and hydrocarbon resources in Africa.

In response, Puntland president Adde Muse Hirsi withdrew his support for the TPG's plans for a unified Somalia while the current Prime Minister, Ali Mohamed Ghedi, remained in office.

Range executive chairman Mike Povey said the company stood behind the Puntland government. "The support of Puntland has always been acknowledged as being essential to the formation of a unified Somalia, hence the reason why Range remains totally committed to complying with the terms of the Contract of Work," Mr Povey said.

STOCK DASHBOARD: MAY 24, 2006

RANGE RESOURCES

Closing Price: 3.7c

Price change from previous trading day: Unchanged

Relative Strength (6 months percentile rank): 35.2

Market capitalisation: $41.89 million

Turnover volume: Untraded

Turnover period: 71 days

Value of $1,000 invested 1 year ago: $2,540

Source: www.BuySellTips.com

PuntLand Returns Confidence Back From Somalia Government

by Mustafa Haji

May 24, 2006

Puntland, May 21, 2006 (The Shabelle Times/All Africa Global Media) -- Somalia Self declared state of puntland has announced today that it holds back it s' confidence on Somalia transitional federal government.

The statement came after the TFG lobbied lately measures to halt the exploration of Gas and other natural minerals around puntland territories.

A written statement from puntland presidential office blamed Somalia premier Gedi of trying to halt down natural resource exploring in Puntland territories.

Ade Muse Hersi, the president of self declared puntland state expressed an acceptable what he termed to be a letter he received from Premier Ali Mohamed Gedi of Somalia.

"We terminated totally our diplomatic and financial relations with Somalia transitional Federal Government after poking its' nose into Puntland affairs. “

The presidential statement also showed that Puntland will continue its' ambitions towards exploring natural resources from its' territories.

Somali premier promises to resolve dispute with Puntland over oil deals

May 23, 2006

A press statement has been issued by the Office of the Prime Minister of the Transitional Federal Government [TFG] of Somalia in Baydhabo [alternative spelling Baidoa] town on the differences between the TFG and the Puntland administration over natural resources.

Reports say the Puntland administration accused the TFG of violating the agreement which the two sides agreed upon.

The TFG minister of information, Muhammad Abdi Mareye, outlined the purpose of the press statement and explained the Puntland accusations and the TFG stand on the accusations.

The minister of information dismissed the Puntland accusations, adding that the existing minor differences would be ironed out and the relation between the two sides would be restored.

In a statement he issued, Puntland President Adde Muse criticized Prime Minister Ali Muhammad Gedi over a statement he issued recently in which he said the Puntland administration had no mandate to sign contracts with foreign companies to prospect for natural resources [oil and minerals] in Puntland-controlled territories.

In his statement, the Puntland president said he would have no links with the TFG government as long as Prof Ali Muhammad Gedi was prime minister.

The Puntland administration had recently signed an agreement with an oil exploration firm to prospect for oil and minerals in Majiyahan District of Puntland, which led to clashes between militias from the district and the Puntland police force. The Majiyahan District militias were opposed to the Puntland administration's decision to allow foreign firms to carry out oil exploration in the area.

Source: Shabeelle Media Network website, Mogadishu, in Somali 23 May 06

Mogadishu elders voice concern over Puntland leader's remarks on premier Gedi

May 23, 2006

Mogadishu, 23 May: Traditional elders from Mudulood tribes of Somalia have asked their counterparts in the self-autonomous region of Puntland to react what they called a statement from Ade Muse Hirsi, the president of Puntland who recently announced severing relations with Premier Gedi's government.

In a press conference held by the Mudulood elders at Mogadishu Bin Ali Hotel, they have given 24 hours deadline for the reaction they sought from Puntland local elders.

They also expressed sadness with the recent statement from Puntland President Ade Muse Hirsi who said severed links with Somali government after premier Gedi interfered what he termed to be interior Puntland affairs,

Abdulle Adow Indhobur and Shire Dalfa, both from Mudulood traditional elders have detailed about their press conference saying that the move proves direct hostility against their clans (Mudulood)", they said.

Somali Prime Minister Ali Muhammad Gedi has issued an statement asking self-autonomous region of Puntland to halt operations involving gas exploration in the region but senior authorities responded cutting relations with Somali government.

Source: Shabeelle Media Network website, Mogadishu, in English 23 May 06

Independent Somalia Region Cuts Ties With UN-Backed Govt

May 21, 2006

MOGADISHU, Somalia, May 21, 2006 (DJCS via Comtex) -- A semiautonomous region in central Somalia cut ties Sunday with the country's U.N.-backed transitional government, saying it was trying to thwart an oil exploration deal in this Horn of Africa nation.

The regional administration in Puntland, which has its own justice system, said Prime Minister Ali Mohamed Gedi was irresponsible and "constantly violated agreements."

"Puntland is an independent regional state, which has a right to benefit from its resources, and it will continue to explore its territory," a statement from the administration said.

Last week, Gedi told Puntland officials that only the transitional government has the power to sell mineral and oil rights. Puntland officials had been negotiating with an Australian mining firm that wanted to buy half those rights in Puntland.

Somalia is believed to have oil reserves, but the country's anarchy has hindered exploration. Somalia has had no effective central government since 1991, when warlords ousted longtime dictator Mohamed Siad Barre and then turned on each other.

The interim government has tried to maintain control from Baidoa, 150 miles west of Mogadishu, because the capital is unsafe. But despite the U.N. backing, it has failed to assert itself.

Recent fighting in the capital between Islamic militias and an alliance of secular warlords has been some of the worst violence in a decade. More than 140 people were killed in eight days before a fragile cease fire was struck last week. Most of the casualties were noncombatants caught in crossfire or killed by stray missiles.

Somali premier urges northern region not to start oil exploration

May 19, 2006

The prime minister of the Transitional Federal Government of Somalia [TFGS], Prof Ali Muhammad Gedi, has released a statement in Baydhabo [alternative spelling Baidoa, south-central Somalia and current seat of government] in which he clearly said the regional administration of Puntland [northern Somalia] cannot start oil exploration in its region at this time.

The statement, written in English and received by SBC [Somalia Broadcasting Corporation], said that previously there were relations between the Puntland regional administration and the TFGS on exploration of resources in Puntland, but said work on drilling oil should not start now.

Ali Muhammad Gedi said in the letter addressed to the president of Puntland that the agreement with Concert and Range [names as published] companies involved drilling of oil wells and was believed to be postponed until parliament debated laws on drilling oil wells in the country's oil reserves.

It is clear in Gedi's letter that parliamentary sessions on oil exploration will be held in coming months, and a national committee that will manage all oil exploration activities be established in the country. [Passage omitted]

Source: Somali Broadcasting Corporation website, Boosaaso, in Somali 19 May 06