Range holds a 20% working interest in two Production Sharing Agreements (PSAs) for the Nugaal and Dharoor Blocks. These concessions encompass two highly prospective hydrocarbon basins covering an area of approximately 40,000km2. In January 2012, Range together with its joint venture partners successfully spud the historic Shabeel 1 well in the Dharoor Valley, the first in a two well exploration program and the first exploration well in Puntland in over 25 years, with the Shabeel North well having been spud soon after the completion of the Shabeel 1 well. Despite the non-commercial nature of the two wells the joint venture partners were extremely encourage that all of the critical elements exist for oil accumulations, namely a working petroleum system, good quality reservoirs and thick seal rocks.
In H1 2015, the Joint Venture (JV) made a decision to close down its office in Somalia, in order to reduce the JV’s cost exposure until there is clarity and contractual certainty around the PSAs and the legal regime that currently exists in Puntland. The JV proposed that the Puntland government offers a two year extension on both existing PSAs, free of any consideration, so that an adequate resolution can be achieved with regards to progressing the exploration programme.