LONDON (Thomson Financial) - Range Resources Ltd. said it has purchased its own exploration drill rig for its mineral explorations in Puntland, northeastern Somalia, due to rugged conditions, remote site access and a shortage of drilling equipment in the area.

The oil explorer said it will use the rig first on its tenements in the Forrestania region of Western Australia. These tenements, which were held prior to the company's acquisition of its interests in Puntland, have the potential for gold and nickel mineralisation, it said.

The company said it will move the rig to Puntland targets after further review and testing of the targets and logistics.

Range Resources said it is in the final stages of negotiations with regards to the completion of a 10,000 km to 15,000 km 2D line seismic programme funded by proposed joint venture partners, and that it is confident of concluding the agreements, particularly with the recent offer of assistance from the Puntland government regarding the use of patrol boats.

Range Resources also said it has temporarily delayed its drilling programme for the Energi Tata Persada Pte Ltd. (ETP) rig, which was scheduled to be shipped from China in mid-May, as the recent upsurge in civil unrest in southern Somalia and piracy around Somalia's coast have caused significant logistical difficulties in shipping more heavy equipment and supplies to the drilling location. Africa Oil signed a contract with ETP, a Singaporean registered company and wholly owned subsidiary of Indonesian oil and gas service company Catur Khita Persada, to supply the drilling rig.

Source: Thomson Financial