24 Jul 2020 08:35
24 July 2020
Red Emperor Resources NL
Quarterly Activities and Cashflow Report
For the Period ended 30 June 2020
The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("RMP", "Red Emperor" or the "Company") is pleased to provide the following commentary on its activities and an Appendix 5B for the quarter ended 30 June 2020.
North Perth Basin, Western Australia
During the quarter, Red Emperor announced that it had taken the decision not to exercise its option to acquire a 70% operated interest in the offshore Perth Basin exploration permit, WA-481-P.
In December 2019, in connection with the option, Red Emperor agreed to fund the completion of an existing committed work programme (comprising geological and geophysical studies) for the final year of the existing permit term, up to a capped amount of A$150,000 which was completed on time and on budget. Contemporaneous with such work programme being completed, the existing JV partners, Pilot Energy Limited - 60% interest and Key Petroleum Limited - 40% interest, in conjunction with Red Emperor, formally applied to the National Offshore Petroleum Titles Administrator (NOPTA) for a renewal of the permit, which expired on 19 February 2020.
Whilst the renewal application was successful and ultimately granted to the JV, the Board felt it prudent not to exercise the Company's option, which therefore expired on 5 June 2020.
Alaska North Slope
During the previous quarter, the operator, on behalf of the JV, held discussions with the relevant regulatory authorities in Alaska in relation to seeking relief on the rentals due on 1 May 2020. Unfortunately, these discussions were unsuccessful and as a result the Western Blocks were relinquished by the JV during the quarter.
Corporate
Over the past 3 months, the oil price has somewhat stabilised after dipping sharply, particularly towards the end of April 2020, however global uncertainty due to COVID-19 remains the industry's biggest challenge. Red Emperor and its Board have been very mindful of protecting the Company's balance sheet and by extension, shareholder value. We remain patient in our approach to reviewing and evaluating new ventures and opportunities, but at the same time the Company is ready, willing and able to transact at the appropriate time. Red Emperor would like to thank all shareholders for their contined patience and remains extremely confident of securing a suitable transaction and generating long term shareholder value.
At the end of the quarter, the Company had cash at bank of approximately A$4.6m. Please refer to the Appendix 5B for further details, which can be be viewed at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/0126U_1-2020-7-24.pdf
For further information, please visit www.redemperorresources.com or contact:
Red Emperor Resources NL - Greg Bandy | +61 8 9212 0102 |
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Strand Hanson Limited (Nominated Adviser) - James Harris |
+44 (0) 20 7409 3494 |
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Brandon Hill Capital (UK Broker) | +44 (0) 203 463 5010 |
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708 Capital Pty Ltd (Australian Broker) | +61 (0) 2 9112 2500 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Table 1: Payments to Related Parties of the Entity and their Associates
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Directors' Remuneration |
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Managing Director's Fees and Superannuation | 49,275 | 49,275 |
Non-Executive Director Fees and Superannuation | 8,213 | 8,213 |
Company Secretarial and CFO Fees | 15,000 | 15,000 |
Total payments to related parties of the entity and their associates | 72,488 | 72,488 |
Table 2: Red Emperor's Tenements
The Company's 31.5% interest in the Western Blocks (ADL#s 391718, 391719, 319720 & 391721) on the North Slope, Alaska was formally relinquished during the quarter ended 30 June 2020.