10 Oct 2011 08:14
10 October 2011 Red Emperor Resources NL ("Red Emperor" or "the Company") Georgian Drilling Update
Red Emperor Resources NL along with its joint venture partners Strait Oil and Gas UK Ltd and Range Resources Limited advises that the Mukhiani Well has been drilled to the intermediate depth of 1544 meters with a proposed total depth of 3500 meters.
Drilling operations are continuing after a short interruption to undertake a comprehensive data collection program for close analysis. The analysis is deemed prudent to determine if the well has reached the Paleozoic granite basement or is drilling through a sub-volcanic intrusive which is masking the targeted primary reservoir objective at a depth of about 2300m as interpreted from the helium survey and exists with other similar discoveries found under sub-volcanic intrusives. An additional factor for undertaking the analysis is the slow drilling rates that are being achieved through the highly variable intrusive complex.
A full suite of wireline logs has been successfully recorded. Additional valuable information has been obtained through the successful collection of 10 sidewall cores from critical intervals. Preparations are underway for cutting a full diameter conventional core within the nearest future. Once the coring program is completed, a Vertical Seismic Profile (VSP) survey will be run.
The new data will then be integrated into the full data set and the subsurface situation reinterpreted as appropriate. This reinterpretation will then be used to determine the next steps for the well depending on the progress of the well at that point in time. The VSP survey will be undertaken in approximately 10 to 14 days.
The Mukhiani Well is targeting the Vani 3 prospect which has the following estimated undiscovered stock tank oil-in-place ("STOIIP"):
Vani 3 Prospect - STOIIP (MMbbls) P90 P50 P10 Mean Gross (100%) 41.7 92.7 178.2 115.2
Net Attributable to RMP (20%) 8.3 18.5 35.6 23.0
The geochemical helium survey undertaken by JV partner, Range Resources, confirmed the suitability of the first drill location with oil exploration and development prospectivity complementing the earlier seismic work completed on the target.
For further information please visit www.redemperorresources.com or contact:
Red EmperorGreg Bandy +61 8 9225 2826Cairn Financial Advisers LLP (Nominated Adviser)Jo Turner +44 20 7148 7900Tony RawlinsonOld 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, the Republic of Georgia and Western Australia.
* 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 nearly 36,000km2 and have independently been assessed to potentially contain a combined 19 billion barrels of oil in-place. Red Emperor's joint venture partner and PSA operator Africa Oil Corp. has signed a letter of intent with a drilling subcontractor and expects the first well to be drilled in Dharoor in Q4, 2011. * 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 last year funded a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of oil-in-place (on a mean 100% basis). Two wells are to be drilled this year as part of the proposed drill program. * The Company also has a 25% interest in the Jillewarra Project, a copper and gold project in Western Australia. This interest is free carried through until bankable feasibility study,
XLON