The PSA relates to Canmex’s $US50m farm-in into 80% of Puntlands two main oil and gas basins, the Nogal Basin and Darin Basin.

“With the PSA now approved by the Puntland Parliament, Range and Canmex will now finalise their joint venture arrangements by mid January 2007 with a 31 January cut-off date,” Range said.

“In respect of the recent outbreak of war in Southern Somalia, the Board is closely monitoring events but at this stage can advise that hostilities have not affected the company’s activities in Puntland given the location of the fighting (over 500km south of the Puntland border with Southern Somalia) and the stability of the Puntland region as demonstrated in its dealings with the Council of Islamic Courts and the Transitional Federal Government of Somalia.”