Member Info for RollingInIt

From Otto's presentation:

Shallow conventional drill. Cheap route to market for any oil in the RMP Western Blocks. :O)

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• With the Oil Search operated Pikka unit development activities occurring to the west and the Conoco-Phillips Meltwater unit facility some 10 miles to the east, any oil found within the Western Blocks will find a cost effective, commercially attractive route to market.

Project economics will be further enhanced by the shallow nature of the oil pool.

Machminchus

Email received only two days ago:

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'Thanks for the email. While it is Red Emperor’s usual policy not to speculate on market rumours or innuendo - we strictly adhere to our continuous disclosure obligations under the listing rules that govern the company and its directors – in this case I can certainly confirm that the company is not interested in, or soliciting for, a capital raising at this time or at these prices.

I have just completed a successful few days in London meeting with brokers and private clients, educating them on the recent deal the company is participating in Alsaka. This was not a capital raising roadshow.

We also hosted an investor evening last week which was advertised to all shareholders in advance and while the turnout was disappointing, anybody who had such a question might well have been served to attend and ask it – it’s a pretty easy one for me to answer.'

Phoebus

In an interview given by Bill Armstrong about the adjacent and seismic analogous Horseshoe.

'We stepped out 21 miles (from the initial test well) and we were still in the same payzone'

'Ostensibly an underground lake'

Here's some more odds stacked in the price's favour Jace. :O)

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'Thanks for the email. While it is Red Emperor’s usual policy not to speculate on market rumours or innuendo - we strictly adhere to our continuous disclosure obligations under the listing rules that govern the company and its directors – in this case I can certainly confirm that the company is not interested in, or soliciting for, a capital raising at this time or at these prices.

I have just completed a successful few days in London meeting with brokers and private clients, educating them on the recent deal the company is participating in Alsaka. This was not a capital raising roadshow.

We also hosted an investor evening last week which was advertised to all shareholders in advance and while the turnout was disappointing, anybody who had such a question might well have been served to attend and ask it – it’s a pretty easy one for me to answer.'

More odds stacked in RMP's favour there on this asset too Jace.

A 100% oil strike rate in the adjacent field.

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The drill target is immediately adjacent to and a direct analogue of the Horseshoe-1/1A oil well drilled by the Repsol-led joint venture in 2017
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Over the last four years, the venture has drilled 16 wildcat and appraisal wells on the North Slope resulting in a 100% track record of finding oil with most wells having oil pay in multiple zones.

Third-party engineering firm DeGolyer and MacNaughton reports C1 reserves of 497 million barrels of oil (MMBO), C2 reserves of 1,438 MMBO and C3 reserves of 3,758 MMBO. These "Contingent" reserve classifications would be converted to Proven, Probable, and Possible where appropriate upon the final investment decision.

"Armstrong and Repsol's North Slope project is representative of the new movement in Alaska where smaller independents work and operate in areas previously dominated by major oil companies," said Bill Armstrong, President of Armstrong Oil & Gas, Inc.

Agree entirely Phoebus.

Fubs

Enter the Alaskan asset adjacent to and analogous with a prolific producing multi billion barrel oil deposit.
Enter 88e, with a proven record of actually drilling for oil.
Enter the new CEO, with ten years under his belt at Exxon.

Odds are stacked in RMP's favour all of a sudden.

Why would someone, who is perpetually accused of being on a free lunch, leave now ? They wouldn't, so it's a pointless 'if only' and a waste of a 'focus'.

Whether by luck or by judgement, the asset that RMP have landed is a large portion of 400 million barrels plus of conventional oil potential, drilled and managed by a reliable partner.

The asset will dictate the price direction coupled with the fact that another company is managing the drill, who at least have a track record of being very active.

The focus should be on the asset and the progress toward and during the drill, which any entity considering whether they'll make money or not if they invest, will do.

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"Lambert will be joining from ExxonMobil Corp, where he has worked for ten years since 2008, leaving as commercial advisor."

Note: 'leaving as', in relation to Exxon.

Let's have a new title then. :O)

No problem.

I'm living in the world of pre-events to make profit the same as you, but just with a different perspective of what could unfold.

Time will tell which 'hunches' become fact.

My 'hunches' are that it's likely for a placing but just before the drill, the price will be far higher than it is now prior to any placing, the price won't languish at today's price for months, it'll be far higher far sooner and the drill will commence in February.

They're just 'hunches', not facts, the same as yours, or as you prefer to describe it, personal rationalising. :o)

If I got any more relaxed, I'd fall asleep.

Nothings 'fact' until after the event.

Your 'at least nine months before drilling' isn't fact and neither is your 'months in advance' price prediction or your '100% guaranteed placing'

The price will do what it always does, go up, go down or stay the same. There might be a placing and there might not be, it could take nine months to get to the drilling but it might be far sooner as per their stated intention in their announcements and they have to complete by May to just fulfil their obligation.

It's not about 'splitting hairs' and it doesn't mean someone isn't chilled either because they question somebody else's claimed 'facts'.

It's simply that each of the total three posts you've written on this website contains a 'claimed fact' about RMP that isn't.

Each to their own.

The ice roads will be accessible in January and drilling will take place in the winter months, so it can't be as long as 'nine months at the very least' for the drilling to start, which would be April.

Planning and Permits take three to six months and they've already commenced, so if it took the full six months, that would bring it to a maximum of December, ready for the roads in January and the winter drill.

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88 Energy will manage the drilling of the initial test well within the Western Blocks on behalf of the joint venture and Consortium Partners.

88 Energy has already commenced a rig market survey and is identifying a suitable rig with which to commence the drilling operations.

Given that the location is only accessible through an ice road, drilling will be undertaken during the winter operational months once the Alaska North Slope is opened for operations.

The joint venture has met with the Alaska Department of Natural Resources to expedite required approvals and permits to undertake the initial test well.

Could be a host of reasons. and the price versus the prize, if they succeed, is nowhere near fully reflected in 88e yet, either. Could be the history of RMP, not realising that a historically more active partner is managing the drill, the lead time to the drill, the lack of awareness relating to the adjacent prolific Horseshoe discovery and field with billions of barrels coupled with the 100% oil strike rate there, and the seismic similarity of RMP's asset to it.

If he decides it's safer to have another £5 million in the till at some point, even though he's already announced that he's got enough cash for the drilling planned at this point, so be it.

Let's not forget, the prize is over £7 Billion worth of conventional oil net to RMP or more, after all. :o)

Let's take greed as a driver in the 'future securing' plan. He'll know, based on the current lowly market cap and the presentation rounds, and the asset potential, that the share price will swiftly increase.

He's done it before, after all. 

He'll wait until he can get the most for it and he doesn't need to do it for months yet either. Cash is still there and the pre drill rise is yet to happen. Even the catch up with 88e's price reaction to the news is yet to happen.

You can't have the argument all ways. If the argument is that he's going to repeat history, that's fine but then he'll follow the same pattern, a month before the drill. I have no doubt he did it near to the drill commencement to get the most he could based on the price rise pre drill. That's four or five months away yet.

Again if he raises 20% extra equity (which is what he did last time) at 5p or more. (£21 mill. market cap at 5p),  the market cap could easily handle it, based on the potential of the asset.

This future placing is part of the furniture with exploration, it's always needed and if the asset  comes good, everyone will be saying, well at least he pulled it off this time. Dramatising it as 'something to fear', which many are trying to do, is over the top.

The point is that it's not just about him making it happen or not, it's also 88e and as you wrote in a few recent RMP posts:

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'Can not believe bandy has pulled this deal off. Otto have a history of very good management, 88e are proving to be very trust worthy (not over promising anything) and rmp just have to hand over the cash so hopefully bandy can not mess this up that much. Mcap needs to be much higher than where it is today'

'No one has noticed yet, the mcap is so small. It’s going to blow when the 88e lot realise this is exposure to 88e without the risks of the current drill. 88 mcap something like 90 million, rmp was this morning about 4 million but probably closer to 5/6 (need to check it). Not many buys yet and look what’s happening to the share price'

'I’m also an 88e holder but feel this gives much better value for money due to the market cap of only 8.5 million. Can not believe the market has not woken up to this yet. There is so much reserch out there. If I get time I may put some up here. The management of Otto and 88e are amazing.'

Agree Bladderman. They don't need cash at present and have enough for the drill.

There's little point raising while the price is so low or even at 3p, which isn't far above where the price is currently, and if as some suggest, the style of raising cash repeats itself, it wouldn't be for some time yet as the drill wouldn't commence until around December.

Last time, three years ago, it was a month before the drilling commenced and they increased the equity by roughly 20%. There's roughly 427 million shares at present, which is only a couple of million shares more than they had after the last cash raise three years ago.

The market cap could easily carry a 20% equity increase at 5p (£21 mill market cap) or even 10p, considering the potential of the asset they're drilling on.

The news added over £20 million to the 88e market cap on the day and RMP's current market cap is only £7.7 million, it would need to triple just to reflect the same market reaction in this stock and the percentage interests aren't very different, RMP 31.5%, 88e 36%.

'Cambric' is correct and a parsimonious proposal indeed from iii. :o)

* The North Slope is a prolific oil producing area in the US, having produced over 17Bbbls with an estimated 40Bbbls of undiscovered recoverable conventional oil

* Operations have already commenced with a rig market survey currently underway and drilling permit applications being prepared

* Formal agreements finalising the transactions to be executed this month

* Well planning has commenced with a surface location and well name to be announced after final technical analysis

:o)

It'll be the new CEO, Gracjan Lambert, co-presenting tomorrow, who's just joined RMP from a ten year stint at Exxon and I can't see him switching to RMP without believing there's a high chance of success with this latest acquisition.
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Mr. Lambert brings with him a wealth of technical and commercial experience in the global oil and gas industry, built over more than 20 years working in Europe, Asia (including the Middle East), Australia, North and South America, and Africa. He has spent the last 10 years at ExxonMobil in diverse roles including managing global field operations and leading complex international commercial negotiations. Over the course of his career he has leveraged his proven commercial track record and technical expertise to inform profitable decision making and leadership. Mr. Lambert holds a PhD in Exploration Geophysics from Curtin University in Western Australia and will be relocating back to Perth to fulfil his role as CEO.

It could be that the huge potential of the asset RMP's acquiring, more by luck than judgement many would claim, to be managed by 88e, is sinking in. Sometimes, being a 'goal hanger' can pay off for a company. :o) Or it could be in anticipation of:

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Red Emperor Resources NL (ASX/AIM: RMP) ("Red Emperor" or the "Company") is pleased to announce that it will be holding an investor and analyst presentation followed by a Q&A session on Thursday, 12 July 2018, commencing at 6:00pm at Prospero House, 241 Borough High Street, London, SE1 1GA.

Greg Bandy, the Managing Director and Gracjan Lambert, the Chief Executive Officer will host the event and present on the Company's most recent acquisition of highly prospective exploration blocks on the prolific Alaska North Slope.

Fortunately, in this case, you've got another listed entity managing the drilling, 88e.

I imagine 88e will be keen to crack on with this conventional oil asset, which will be much simpler and a pleasant change for them from the far more complex oil shale drilling and extraction that they've been trying to perfect to date and given this assets similarity to the billions of barrels of oil discovery in the adjacent Horseshoe and the 100% oil strike rate there, of course they'll be keen.

At least 88e have a track record of cracking on with the projects they have, so RMP, by default will be 'active', driven by 88e. Easy street for RMP.

From the RNS:

'Drilling Planning

88 Energy will manage the drilling of the initial test well within the Western Blocks on behalf of the joint venture and Consortium Partners. 88 Energy has already commenced a rig market survey and is identifying a suitable rig with which to commence the drilling operations.'

Agree about the asset. 126 million barrels potential net to RMP and room to increase this with more 3D data.

Considering the billions of barrels at the Horseshoe discovery adjacent to these four Western blocks and the 100% oil strike rate there with every drill, and the similarity of RMP's Western blocks to Horseshoe, which is described in greater detail further down in the RNS, listed below:

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'The discovery at Horseshoe has extended the known accumulation of Nanushuk oil some 20 miles south of earlier discoveries such as those at Qugruk 8 and Qugruk 301 which flowed 30-degree gravity crude at rates as much as 2,160 and 4,600 bbls/d respectively[i].

Exploration success in the Nanushuk play-fairway is now being driven by the understanding that when reservoir quality top set sands are present anomalously high amplitudes are seen on seismic data.

This type of positive amplitude response has also been seen on seismic over the Western Blocks as illustrated above.

Otto presently calculates a gross best estimate prospective resource volume of 400 MMbbls in the prospect area mainly on the basis of this amplitude work.

Some of the block area to the south is not covered by 3D data and as yet uncalculated upside potential is likely to exist in this area as well.

Further encouragement that the prospect will be found oil bearing is provided by the presence of oil shows seen in the adjacent Itkillik River-1 well drilled in 1978.

Here oil was observed during drilling at multiple levels within fine grained sediments. '