RMP.L Regulatory News (RMP)

31 July 2013 Red Emperor Resources NL Quarterly Report for the Period Ending 30 June 2013 Issued Capital: 266M*ASX Code: RMP Closing price: $0.046*AIM Code: RMP Closing price: £0.0312* * as at 30 June 2013 The Board of Red Emperor Resources NL (Red Emperor or the Company) is pleasedto provide the following commentary and Appendix 5B for the period ending 30June 2013. Georgia Project During the quarter Red Emperor's Joint Venture Partner and Operator, Strait Oil& Gas UK, advised that the processing and interpretation of a 200km 2D seismicprogram carried out by the Geophysical Institute of Israel ("GII") wascompleted and incorporated into a Geological Model. Results of the Geological Model, which also includes data from the Sovietperiod along with the seismic interpretation performed by RPS Energy in 2009,will hopefully enable the Joint Venture to confirm potential drilling locationsin Block VIb that were highlighted as prospective from the initial survey in2009, along with allowing the Joint Venture to update the reserve and resourcepotential across the two license areas. Work has also commenced on evaluating the shale gas/oil potential that has beenidentified on approximately 3,000km2 with geological mapping and modelling ofthis potential expected to be finalised in Q4 2013. Coal Bed Methane Joint Venture The Joint Venture Partners, together with the Georgian Industrial Group (GIG),are continuing to progress plans to commence a feasibility and technical study,which if positive, is expected to be followed by an initial three to four wellpilot project targeting coal bed methane gas. During the quarter Red Emperorwas advised that site planning for the CBM project had been finalised, with allplans and locations assessed, mapped and the initial well program agreed withGIG. Initial geological reports together with an economic model have beensubmitted to the Georgian government for approval. Red Emperor is advised that subject to Government approvals, the implementationof the Project is scheduled for the beginning of Q4. It has been proposed todrill a total of four wells initially and connect the obtained gas to the localpipeline infrastructure. Potential Farm-in Discussions During the quarter JV Partner and Strait Oil & Gas' UK shareholder, RangeResources Limited, advised Red Emperor that it had received farm in / jointventure interest from a number of parties with respect to both the conventionaland unconventional opportunities across the two licenses. Further updates willbe provided as we are further advised. Puntland Project During the previous quarter, Red Emperor's JV partner and operator of itsPuntland Project, Horn Petroleum Corp (TSXV: HRN), has been focused on makingpreparations for a seismic acquisition campaign in the Dharoor PSA, which willinclude a regional seismic reconnaissance grid in the previously unexploredeastern portion of the basin as well as prospect specific seismic to delineatea drilling candidate in the western portion of the basin, where an activepetroleum system was confirmed by the recent drilling at the Shabeel-1 andShabeel North-1 locations. The focus of the Dharoor seismic program will be todelineate new structural prospects for the upcoming drilling campaign. As previously reported, based on the encouragement provided by these twoShabeel wells, the JV entered into the next exploration period in both theNugaal and Dharoor Valley Production Sharing Contracts ("PSCs") which carry acommitment to drill one well on each block within an additional 3 year term.The current operational plan is to contract a seismic crew to acquireadditional data in the Dharoor Valley block and to hold discussions with thePuntland Government to gain access regarding drill ready prospects in theNugaal Valley block. For and on behalf of the Board Greg BandyExecutive Director Appendix 5B Summary - Consolidated Statement of Cashflow Current Year to Date Quarter (12 months) $A'000 $A'000) Cash flows related to operating activities Receipts from product sales and related debtors - - Payments for: * exploration and evaluation (391) (8,514) * development - - * production - - * administration (318) (1,185) Dividends received - - Interest and other items or a similar nature 166 524received Interest and other costs of finance paid - - Income taxes paid - - Other Receipts (refunds) 6 11 Net operating Cash Flows (537) (9,164) Cashflows related to investing activities Payments for the purchase of: * prospects - - * equity investments - - * investments - - Proceeds from the sale of: * prospects - - * equity investments - - * investments asset acquisition escrow acc - 982 Loans to other entities - - Loans repaid by other entities - - Proceeds from underwriting - - Net investing cash flows - 982 Cash flows related to financing activities Proceeds from raisings - 2,250 Proceeds from sale of forfeited shares - - Proceeds from borrowings - - Repayment of borrowings - - Dividends paid - - Costs associated with issue of shares - (135) Net financing cash flows - 2,115 Net increase / (decrease) in cash held (537) (6,067) Cash at the beginning of the quarter / year to 12,514 18,044date Exchange rate adjustments - - CASH AT THE END OF THE QUARTER 11,977 11,977 For further information please visit www.redemperorresources.com or contact: Red EmperorGreg Bandy +61 8 9225 2826Rebecca Sandford +44 20 7025 7040 Fox-Davies Capital Limited (Nominated Adviser and Broker)Susan Walker / Simon Leathers +44 20 3463 5000Daniel Fox-Davies / Richard Hail +44 20 3463 5000 Background Red Emperor Resources NL (ASX: RMP | AIM: RMP) is a natural resourcesexploration company with interests in the frontier state of Puntland, Somaliaand the Republic of Georgia. In Puntland, Red Emperor holds a 20% working interest in two licencesencompassing the highly prospective Dharoor and Nugaal valleys. These twoexploration areas cover over 36,000km2. Horn Petroleum, the operator and 60%interest holder, has completed a two well program with the JV having nowentered the next phase of the two Production Sharing Contracts across bothblocks. In the Republic of Georgia, Red Emperor has a 20% working interest in onshoreblocks VIa and VIb, covering approximately 6,500km2. After the drilling of thefirst well in July 2011 Mukhiani -1 the JV has focused on evaluating the largeunconventional CBM potential of the area, as it is seen to be relatively lowrisk and has the potential to contribute cash flow to fund further explorationif successful. The Contingent Resource estimate quoted above of 400bcf of CBM gas at theTkibuli project is sourced from the publically available report by AdvancedResources International's ("ARI") prepared in 2009: CMM and CBM development inthe Tkibuli-Shaori Region, Georgia. Advanced Resources International, Inc.,2009. Prepared for GIG/Saknakhshiri and U.S. Trade and Development Agency. Thereport can be viewed at:http://www.globalmethane.org/documents/toolsres_coal_overview_ch13.pdf The Joint Venture technical consultants have not yet reviewed the details ofARI's resource estimate and the reliability of this estimate and its compliancewith the SPE reporting guidelines or other standard is uncertain. Red Emperorand its JV partners will be seeking to confirm this resource estimate, and seekto define reserves, through its appraisal program and review of historical dataduring the next 12 months. Competent PersonSubject to the Caveat above regarding the ARI report: All of the technicalinformation, including information in relation to reserves and resources thatis contained in this document has been reviewed internally by the Company'stechnical consultant, Mr Alexander Parks. Mr Parks is a Petroleum Engineer whois a suitably qualified person with over 15 years' experience in assessinghydrocarbon reserves and has reviewed the release and consents to the inclusionof the technical information.