23 Jan 2012 07:09
23 January 2012 Red Emperor Resources NL ("Red Emperor" or "the Company") Georgia Update - Site Construction Underway
Red Emperor Resources NL ("Red Emperor" or "the Company") would like to announce the following updates with respect to its Georgian operations.
The Company is pleased to announce that site construction has commenced in readiness for the spudding of the Company's second exploration well in Georgia - the Namakhvani well which is the Kursebi 6 Prospect. Targeted spudding date is early to mid February 2012 with a target depth of circa 3,500m.
Given the unexpected geological sequences encountered with the first well, Red Emperor's joint venture partner, Range Resources Limited has engaged new independent technical consultants, NTD Energy, to perform a fresh review of all of the seismic and geological data across the top 3 Kursebi prospects previously identified. The Kursebi 6 prospect was identified as the most robust prospect with a more clearly defined structure and indications of a significantly thicker Jurassic section, increasing chances of encountering more reservoir and mature source rocks.
Below are the estimates of undiscovered stock tank oil initially in place (STOIIP) for the prospect.
STOIIP (Mmbbls) P90 P50 P10 MeanK-6 Prospect - 100% 32.2 84.8 185.8 99.2
Attributable to Red Emperor - 20% 6.44 16.96 37.16 19.84
NTD Energy will assist in the management of the Company's drilling program for the Namakhvani well along with the supervision of the proposed 2D seismic program on block VIb. NTD Energy will also assist the Company promoting and developing the unconventional (shale) plays that may exist across the two licence areas through the introduction of farm-in partners.
The Company will provide regular updates as to the progress of the drilling of the second exploration well.
For further information please visit www.redemperorresources.com or contact:
Red Emperor
Greg Bandy +61 8 9225 2826
Rebecca Sandford +44 20 7025 7040
Cairn Financial Advisers LLP (Nominated Adviser)
Jo Turner +44 20 7148 7900
Tony Rawlinson
Old Park Lane Capital plc (Broker)
Luca Tenuta +44 20 7493 8188Michael ParnesTavistock CommunicationsPaul Youens +44 20 7920 3150Ed PortmanBackground
Red Emperor Resources NL is a natural resources exploration company with interests in the frontier state of Puntland, Somalia and the Republic of Georgia.
* In Puntland, Red Emperor holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys. These two exploration areas cover over 36,000km2. The first well in a two well programme spudded with drilling also commenced on the second well in January 2012 targeting 300mmbls and 375mmbbls of best estimate Prospective Resources (100% basis). Site construction has commenced on the second well with the setting of the 30 inch surface casing and the drilling of a 50 meter pilot hole in readiness for spudding following the completion of the first well. * In the Republic of Georgia, Red Emperor has a 20% working interest in onshore blocks VIa and VIb, covering approx. 6,500km2. Joint Venture partner Range Resources Limited previously funded a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of oilâ€"inâ€"place (on a mean 100% basis) with the first (Mukhiani-1) of two exploration wells having spudded in July in 2011. Re-interpreted seismic supported by the Mukhiani-1 vertical seismic profiling has identified new fault and stratigraphic trapping potential with the possibility of a side track well to be drilled post additional seismic in 2H 2012.
XLON