Speculation has intensified about the likely outcome of the Shabeel North well in Puntland, Somalia, after one of the companies involved in the well, AIM-quoted Red Emperor Resources (LON:RMP), requested a trading halt.
Red Emperor, which is dual listed in Australia, instigated the suspension around 20 minutes after the start of trading in London on Tuesday, which initially caused confusion among investors. That uncertainty was exacerbated some time later when Red Emperor’s partner in Puntland, Range Resources (LON:RRL), issued a statement insisting that while final downhole logging was underway, no results were yet available from the well operator, Horn Petroleum Corp.
Red Emperor and Range each hold 20 percent interests in the Shabeel North well, with Horn controlling the remaining 60 percent. Horn has already drilled the first well (Shabeel-1) in a two well program and began drilling Shabeel North in early June. By late July it had concluded that certain upper sands in the well contained water and the partnership subsequently decided to drill deeper.
