RMP.L Regulatory News (RMP)

24 July 2019

Red Emperor Resources NL

Quarterly Activities and Cashflow Report

For the Period ended 30 June 2019

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 2019.

Highlights

·; The performance bond for the Western Blocks, North Slope Alaska, was refunded (RMP's share USD1.05m)

·; RMP remains well positioned financially with a cash balance of approximately AUD5.6m as at the end of the quarter

·; Alongside its JV partners, RMP is proceeding to further evaluate the Nanushuk potential of the Western Blocks utilising the valuable data obtained while drilling Winx-1

·; A JV decision has been made to reprocess the Nanuq 3D seismic data as well as to acquire new seismic data, expected to become available in Q3 2019

·; The moratorium period on Block SC55 in the Philippines has been extended to 26 August 2019

Alaska North Slope

During the quarter, the performance bond for drilling of Winx-1 on the Western Blocks, North Slope of Alaska, was refunded with RMP's share being USD1.05m.

Evaluation of the data acquired at Winx-1 is ongoing. The JV expects to go out to tender for the reprocessing of the Nanuq 3D seismic, incorporating data acquired at Winx-1, and acquisition of new seismic data in Q3 2019. This will allow sufficient time for the JV to complete all required technical and evaluation work prior to the 2020/2021 drilling season.

The announcement by Oil Search Limited on 28 June 2019, doubling its interests in acreage abutting the Western Blocks, lends further support to our view of the high potential of our acreage.

Philippines (Block SC55)

On 19 November 2018, SC55 Operator, Palawan55, on behalf of the consortium, requested that the Philippine's Department of Energy ("DOE") extend the moratorium period to allow sufficient time for the then ongoing reprocessing and quantitative interpretation ("QI") work to be completed. On 22 April 2019, the DOE granted a 4-month extension, from 26 April to 26 August 2019.

Reprocessing of the seismic data has now been completed, with the draft final report currently being reviewed, and the QI work is on track to be completed before the end of the moratorium period.

This activity is part of the continuing effort by the Block SC55 consortium to help further de-risk previously identified drill-ready targets, including the "Cinco" gas prospect which has a best estimate prospective resource of 1.6 trillion cubic feet ("tcf") recoverable gas, and identify new highly prospective leads whilst reducing overall uncertainty. By leveraging its extensive and robust data set, the consortium hopes to ensure that it is on the strongest technical footing as it moves forward to the next phase of operations.

Corporate

During the quarter, Red Emperor engaged an external consultant to assist with evaluating oil and gas opportunities across a number of jurisdictions. This process is ongoing, and the Company is actively evaluating a number of potential leads.

At the end of the quarter, the Company had cash at bank of AUD5.6m. Refer to the Appendix 5B for further details which can be viewed here: http://www.rns-pdf.londonstockexchange.com/rns/4930G_1-2019-7-24.pdf

For further information, please visit www.redemperorresources.com or contact:

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

About Red Emperor Resources NL

Red Emperor Resources NL is an Australian natural resource exploration company listed on both the Australian Securities Exchange (ASX: RMP) and the AIM Market (AIM: RMP). Red Emperor has oil and gas interests on the Alaska North Slope and in South East Asia.

Alaska

Red Emperor entered into Definitive Agreements in July 2018 with its consortium partners 88 Energy Limited and Otto Energy Limited that subsequently saw the Company earn a 31.5% working interest in the Western Blocks on the North Slope Alaska by participating in the drilling of the Winx-1 exploration well in early 2019. Whilst results from the Winx-1 well indicated a technical if not commercial success, the valuable well data gathered has encouraged RMP to continue to evaluate the Nanushuk potential of the Western Blocks with its partners.

The Western Blocks are adjacent to third party acreage where the Horseshoe-1/1A oil well was successfully drilled in 2017. Horseshoe is part of the billion-barrel plus Nanushuk oil play-fairway, one of the largest conventional oil fields discovered in the US in more than 30 years.

Philippines

Red Emperor also holds an equity interest of 37.5% of Block SC55, which is located in the southwest Palawan Basin. SC55 covers an area of 9,880km2 and was awarded to Otto Energy Investments Ltd (formerly NorAsian Energy Ltd) in 2005. It is a deep-water block in the middle of a proven regional oil and gas fairway that extends from the productive offshore Borneo region in the southwest to the offshore Philippine production assets northwest of Palawan.

Red Emperor participated in a USD25m exploration well (Hawkeye-1) within the block in 2015 and contributed in excess of AUD5m towards drilling costs. Over USD50m has been spent exploring SC55 to date and a number of drill-ready targets remain, including the "Cinco" gas prospect which has a best estimate prospective resource of 1.6 tcf recoverable gas.

Red Emperor's Tenements

The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3 for the quarter ended 30 June 2019.  

No tenements were acquired or relinquished during the quarter.