January 2012 - Spudding of the Shabeel-1

Horn Petroleum, the well operator, is currently preparing to drill ahead to a total planned maximum depth of 3,800 meters. Drilling operations have also commenced on the Shabeel North-1 well with the setting of the 30 inch surface casing and the drilling of a 50 meter pilot hole.

Click here to see spudding ceremony photographs

November 2011 - Final Site Preparations

Horn Petroleum Corp. ("Horn") is currently in final preparations to commence a two well drilling campaign in the Dharoor Valley Block, with the first well (Shabeel‐1) planned to spud in December 2011. Drilling locations have been selected over two robust prospects targeting gross best estimated prospective resources of over 300 million barrels each, based on internal operator estimates.

Horn has completed sourcing drilling related materials and the majority of materials are on site or on route to the drilling site. Site preparation including the drill site, air strip and ingress route construction have been completed. Water wells are currently being drilled to provide source water for drilling operations.

Range’s clearly defined goal has been to facilitate the exploration and commercial development of the State’s natural resources to bring the commensurate benefits to the people of Puntland and shareholders of the Company.  It has always been the view of the Company to facilitate the use of third party farm ins and joint ventures to assist in funding its on going obligations under the Heads of Agreement.

In October 2006 Range signed a Memorandum of Understanding with Africa Oil in relation to an US$50m 80% farm in right in the Nogal Basin and Darin Basin Blocks. This has since resulted in a Joint Venture project being formalised between Range and Africa Oil which saw the formal signing of the Product Sharing Agreement between Range, Africa Oil and the Puntland Government take place on 17 January 2007.  The formal signing of the PSA cemented the ongoing co-orperative and committed relationship between Range, Africa Oil and the Puntland government and confirmed the willingness of all the parties involved to develop the natural resources of Puntland.

Key terms of the MOU with Africa Oil are as follows:

• Africa Oil will be the Operator of the on shore oil and gas exploration effort with an obligation to spend US$50m to earn an 80% interest in the two main basin areas in Puntland (the Nogal and Darin Basins). The US$50m includes a minimum of four exploration wells to be completed (two in each basin), a sign on bonus to be confirmed upon finalization.  There is a further US$3.5m payment upon commercial production.  Range free carried until exploration moneys spent;
• Of the Africa Oil 80% farm in right, 20% (in one or both basins) is available to farm out to third parties on terms to be agreed between Range and Africa Oil
• In mid 2012 ASX/AIM listed company, Red Emperor Resources farmed into a 20% share of Africa Oil's 80%. Subsequently Africa Oil spun out its interests in Puntland into TSX listed Horn Petroleum as a fully focused Puntland vehicle

Africa Oil successfully completed a 775km 2D seismic program in the Dharoor Valley. Subsequently the PSA's were ratified by the Puntland Government in December 2009 and extended until January 2012, paving the way for operations to commence and drilling of the first exploration well in Puntland in over 18 years.

Horn Petroleum Corp. ("Horn") is currently in final preparations to commence a two well drilling campaign in the Dharoor Valley Block, with the first well (Shabeel‐1) planned to spud in December 2011. Drilling locations have been selected over two robust prospects targeting gross best estimated prospective resources of over 300 million barrels each, based on internal operator estimates.

Horn has completed sourcing drilling related materials and the majority of materials are on site or on route to the drilling site. Site preparation including the drill site, air strip and ingress route construction have been completed. Water wells are currently being drilled to provide source water for drilling operations.