25 Oct 2019 07:00
25 October 2019
Red Emperor Resources NL
Quarterly Activities and Cashflow Report
For the Period ended 30 September 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 September 2019.
Alaska North Slope
During the quarter, the Joint Venture purchased additional regional 3D seismic data within the Western Blocks, with reprocessing and reinterpretation of the existing 3D seismic planned in order to assess further the prospectivity of the JV's acreage.
Along with regional petrophysical analysis, the operator hopes to report further to the JV during the coming month(s).
Philippines (Block SC55)
On 26 August 2019, the 4-month extension to the moratorium period granted by the Philippine's Department of Energy ("DoE") expired. The Joint Venture sought to enter into Sub-Phase 5 which required further, significant expenditure including the commitment to drill an exploration well in 2020.
The Board decided that this was not the optimum use of shareholder funds and as a result during the quarter the Company advised the operator, Palawan55, of its intention to withdraw from the JV and have its equity interest re-assigned. Red Emperor still awaits formal approval of this reassignment from the DoE and will advise shareholders once this has occurred.
Corporate
In August 2019 Mr Gracjan Lambert, Chief Executive Officer, resigned from the Company, by mutual agreement, in order to pursue other business interests. During the quarter Red Emperor retained the services of Mr John Begg on a part-time basis to assist with introducing and reviewing business opportunities. John is an expert, upstream oil and gas project generator and deal closer. With decades of experience in equity capital markets, John is an industry-leading geoscientist who has lived and worked with consistently high business impact in Australia, developing SE Asian countries, the UK, Mididle East and the USA.
Along with Mr Begg, Red Emperor has conducted high level due diligence on a number of projects around the world. The Company looks forward to updating its evaluation of such opportunities as they progress.
At the end of the quarter, the Company had cash at bank of approximately AUD5.3m. Refer to the Appendix 5B for further details which can be viewed at: http://www.rns-pdf.londonstockexchange.com/rns/0927R_1-2019-10-24.pdf
For further information, please visit www.redemperorresources.com or contact:
Red Emperor Resources NL | +61 8 9212 0102 |
Greg Bandy |
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Strand Hanson Limited (Nominated Adviser) | +44 (0) 20 7409 3494 |
James Harris |
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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.
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 currently holds an equity interest of 37.5% in 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 September 2019.
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Alaska |
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Western Blocks (ADL#s 391718, 391719, 319720 & 391721) | North Slope, Alaska | 92km2 | 31.5% |
Philippines |
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SC55 | Palawan Basin, Philippines | 9,880km2 | 37.5% |
No tenements were acquired or relinquished during the September Quarter.