LONDON (Alliance News) - Red Emperor Resources NL shares fell on Thursday after it said it has raised GBP2.9 million through an oversubscribed placing at a discounted placing price, which it will use to fund its upcoming drilling and appraisal activities in the Philippines.
The oversubscribed placing was for 72.0 million new shares in the company at 4.0 pence per share and was conducted by its London broker 708 Capital.
Red Emperor shares were down 1.9% to 4.78 pence per share on Thursday morning, having fallen to 4.00p near the open.
The funds will be used to develop Block SC55 in the south-west Palawan basin of the Philippines, in which it holds a 15% stake.
Hawkeye-1, the first prospect that was identified at the project, has previously assessed by the Otto Energy Ltd, the operator of block, to contain a best estimate of oil in place of 480 million barrels of oil and a best estimate gross prospective resource of 112 million barrels, of which 14.3 million barrels is net to Red Emperor.
Otto has already secured the Maersk Venturer drill ship to drill the Hawkeye-1 prospect, and the company said it anticipates a spud date towards the end of July. The well is expected to take less than a month to drill.
Red Emperor said it continues to look at acquiring further opportunities after the placing boosted its GBP6 million cash balance, and said it would "move forward quickly should a suitable opportunity arise".
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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