28 Jun 2011 09:14
28 June 2011 Red Emperor Resources NL ("Red Emperor" or "the Company") Georgian Drilling Update
Red Emperor Resources NL is pleased to provide the following update on activities in Georgia with respect to the drilling of its first exploration well.
The exploration drilling rig and associated equipment that will be used for the Company's two well exploration program arrived at the port of Poti in Georgia recently and is now on site being erected with a scheduled spudding date of early July. A total of 40-50 personnel will be conducting the drilling program on a 24 hour basis.
This Mukhiani well is targeting the Vani 3 prospect which has a best estimate of oil in place in excess of +115mbbls (with 23MMbls attributable to Red Emperor's 20% interest). This prospect was also the subject of the geochemical helium survey completed by Actual Geology earlier this year with the results identifying a positive presence of helium anomalies across the prospect that indicate the presence of a working hydrocarbon system.
The Mukhiani well is targeting a depth of approximately 3,500m and is expected to reach target depth within 45-55 days, and is the first of a two well highly prospective exploration drilling program to be completed by the Company this year.
For further information, please visit the Company's website www.red-emperor.com/ or contact:
Red EmperorGreg Bandy +61 8 9225 2826Cairn 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, 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 in 2011. These two exploration areas cover nearly 40,000km2 and have independently been assessed to potentially contain over 19.9 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 Q3, 2011. * In the Republic of Georgia, Red Emperor has a 20% working interest in onshore blocks VIa and VIb, covering approx. 6,500km2. Partner Range Resources Ltd 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 oilâ€"inâ€"place (on a mean 100% basis). Mobilisation has commenced with the first exploration well due to spud July 2011. * The Company also has a 25% interest in the Jillewarra Project free carried until bankable feasibility study, which is a copper and gold project in Western Australia.