Somalia

Africa Oil Corp., Vancouver, BC, plans to spud an exploratory well in Somalia’s Puntland State by mid-2010.

By OGJ editors
HOUSTON, Dec. 14
– Africa Oil Corp., Vancouver, BC, plans to spud an exploratory well in Somalia’s Puntland State by mid-2010.

The Puntland government cabinet extended the Africa Oil group’s existing production sharing agreements by 1 year to Jan. 17, 2011, subject to approval by parliament as early as December 2009.

Terms of the exploration programs are amended giving Africa Oil the option to drill one exploratory well in each of the Nugaal and Dharoor Valley exploration areas or two exploratory wells in the Dharoor Valley in the initial exploration period.

In consideration of the extension, the parties agreed to voluntarily relinquish 25% of the original area by Jan. 17, 2010.

Interests in the blocks are Africa Oil 65%, Range Resources Ltd., Perth, 20%, and Lion Energy Inc., Vancouver, BC, 15%.

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