16 Dec 2011 08:11
16 December 2011 Red Emperor Resources NL ("Red Emperor" or "the Company") Issue of Equity Highlights * Placing to raise approximately £4.09 million * Placing provides additional funding to progress the current exploration programs in Puntland and Georgia * Drilling of Puntland Shabeel-1 well and Georgia Kursebi 2 prospects about to commence with both expected to spud in January, 2012
Red Emperor Resources NL , the oil and gas exploration company with interests in Puntland and Georgia, is pleased to announce a placing, through Fox-Davies Capital Limited in the UK and Max Capital Pty Ltd in Australia, of 37,178,123 new ordinary shares at 11 pence per share (AUD $0.17) (the "Placing Shares"), raising approximately £4.09 million before expenses (the "Placing"). The funds raised under the Placing will be used for working capital and to progress the Company's exploration drilling activities in Puntland and Georgia.
Application has today been made for admission of the Placing Shares to trading on AIM. It is expected that admission will become effective on or about 22 December 2011. The Placing Shares will rank pari passu in all respects with existing ordinary shares in the ompany.
Following Admission, the Company will have 189,651,380 ordinary shares on issue. The Company holds no shares in treasury and each share carries one vote. This figure may be used by shareholders in the Company as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest, under the Disclosure and Transparency Rules.
Red Emperor's Executive Director, Greg Bandy, said:
"This is a very exciting time for our Company as we are funded to drill major transformational prospects in Puntand and a second well in Georgia, both expected to spud in January. The additional funds raised in the placing will allow Red Emperor to commit to a second well in Puntland, should we choose to do so, as well as provide us certainty about our future beyond these two major wells.
For further information please contact:
Red Emperor www.redemperorresources.com Greg Bandy, Executive Director +61 8 9212 0100
Cairn Financial Advisers LLP (Nominated Adviser) Jo Turner / Tony Rawlinson +44 20 7148 7900 Fox-Davies Capital Limited +44 20 3463 5000
Daniel Fox-Davies/ Richard Hail Old Park Lane Capital plc (Broker) +44 20 7493 8188 Michael Parnes / Luca Tenuta
Tavistock Communications +44 20 7920 3150 Paul Youens / Ed Portman Background
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 over 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 contract with drilling company Sakson Drilling and Oil Services as well as all related third party contracts. Site works are now complete and the first well is expected to be drilled in early January, 2012. * 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). Work has commenced on the preparation of the well site and surrounds in readiness for the drilling of the second exploration well on the Kursebi 2 prospect. Spudding of the second well is targeted for early January 2012 * The Company also has a right to earn 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