28 Nov 2011 07:44
28 November 2011 Red Emperor Resources NL ("Red Emperor" or "the Company") Project Update
Red Emperor Resources NL is pleased to announce the following operations update with respect to the Company's interests in Georgia and Puntland.
Georgian Project
Re-interpretation of the Mukhiani-1 seismic data supported by the Vertical Seismic Profile ("VSP") results has indicated that the well encountered previously unrecognized faults that led to possible basement being encountered far earlier than predicted. New fault and stratigraphic trapping potential has been identified in the vicinity of the well and based on these findings, Red Emperor and its partners have the option to side-track and test these targets. However it has been decided that, based on the exploration schedule and availability of the drilling rig, the Company and its partners will continue onto the next proposed Kursebi well.
As a result, the Mukhaini-1 well will be suspended and the rig moved to the next proposed well site. The Kursebi well is targeting separate geological structures from the Vani area, with the Kursebi target having been identified using different seismic lines for interpretation purposes. With additional seismic planed for Block VIb in Q2 next year, the Company and its partners have decided to also complete a further seismic tie in line over Mukhiani-1 to assist with the proposed side-track well to be completed in the second half of 2012.
Puntland Project
In Puntland, Horn Petroleum Corp. ("Horn") is currently in final preparations to commence a two well drilling campaign in the Dharoor Valley Block, with the first well (Shabeel-1) planned to spud in December 2011. Drilling locations have been selected over two robust prospects targeting gross best estimated prospective resources of over 300 million barrels each, based on internal operator estimates.
Horn has completed sourcing drilling related materials and the majority of these materials are on site or on route to the drilling site. Preparation works including the drill site, air strip and ingress route construction have been completed. Water wells are currently being drilled to provide source water for drilling operations.
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 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 a drilling company Sakson Drilling and Oil Services as well as all related third party contracts 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 oilâ€"inâ€"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