Range Resources (ASX:RRS, LON:RRL) has amended its agreements with the government of Puntland (Somalia) over its production sharing agreements (PSAs) for the Dharoor Valley and the Nugaal Valley exploration areas.
Under the amended PSAs, the first exploration agreement has been extended for a further 12 months until 17 January 2012.
In addition to that, a minimum of one exploratory well must be spudded in the Dharoor Valley exploration area by July 27, 2011.
A second exploratory well is required to be spudded in Nugaal Valley or, at the option of operator Africa Oil (TSX-V:AOI), in Dharoor Valley, by September 27, 2011.
Range also said that the proposed farmout to Red Emperor of a 20 percent interest in each of the PSAs, previously announced on 15 June 2010, has been approved by the government.
Under the Red Emperor farmout, Red Emperor is committed to pay a disproportionate share of the costs related to the joint venture's drilling commitments in the first exploration period.
Range’s other joint venture partner in the project is Lion Energy Corp (TSX-V:LEO).
Earlier this month, Range boosted its interest in the shallow oil East Texas Cotton Valley project to 21.75 percent, an increase of 8.1875 percent, for $148,000.
The company said the acquisition represents an opportunistic additional investment in the prospect as its partners prepare to spud the Ross 3H horizontal appraisal well in the coming weeks.