By Somalilandtimes network

Sydney, Australia, February 28, 2006 - RANGE Resources deployed two field exploration teams into troubled Somalia yesterday, undeterred by threats it could "jeopardize the peace and stability of the entire Horn of Africa".

The Melbourne explorer last year signed a deal that gave it the rights to 50.1 per cent of all mineral and petroleum exploration and development in Somalia's semi-autonomous state of Puntland.

The agreement upset the neighboring state of Somaliland, which is involved in a violent border dispute with Puntland.

Somaliland recently warned Range and other foreign companies to avoid mining or exploration activities.

"If they should do so, (they) will face whatever action Somaliland deems necessary to protect the integrity of its territory," the Somaliland Government said. "Any such action … may result in the loss or damage of any equipment that these foreign companies have illegally brought into Somaliland."

Range company secretary Peter Landau said his company was aware of the border skirmish, but had still sent an exploration team into the disputed area to firm up oil and gas resources.

"We don't believe those areas pose any greater risk than any other area," he said.

The Department of Foreign Affairs and Trade warns against all travel to Somalia due to widespread lawlessness and fighting between militia groups and a high threat of terrorist attack. Australians have been kidnapped for ransom in Somalia.

Mr. Landau admitted there was a high degree of geopolitical risk in Puntland, but added there was "significant upside" in terms of oil and gas and minerals.

"There's always got to be a first (company to operate in a country)," he said. "There was a first with Mauritania and a first with Angola."

Puntland had previously been explored by large companies such as Conoco-Phillips and Shell, which were forced out after the Somali Government was ousted and the country collapsed into famine and tribal warfare in 1991.

Mr. Landau said Range had talked to a few companies, including one or two "serious" oil industry players, about farm-in deals, but had yet to reach an agreement.

"The oil and gas potential is seriously significant. We're not talking a small play here," he said. "All we have to do, in my opinion, is to get people comfortable with sovereign risk."

Range shares closed 0.1¢ lower at 4.3¢ yesterday.

By Jamie Freed, Sydney

Source: The Age, February 28, 2006

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