RMP.L Regulatory News (RMP)

31 January 2014 Red Emperor Resources NL Quarterly Report for the Period Ending 31 December 2013 Issued Capital: 266M * ASX Code: RMP Closing price: A$0.045* AIM Code: RMP Closing Price: £0.0279* * as at 31 December 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 31December 2013. Georgia Project Red Emperor has a 20% working interest in onshore oil and gas explorationblocks VIa and VIb, covering approx. 6,500km2, in the Republic of Georgia. During the quarter joint venture partner, Range Resources Limited (Range) andOperator,Strait Oil & Gas UK (Strait) completed an extensive review of all geologicaldata and finalised a program to proceed with the development of blocks VIa andVIb. Red Emperor was advised that the State Agency for the Regulation of Oil and Gasagreed to the proposed timetable for a drilling campaign with the final workprogram passed by the Coordination Committee of the National Oil Corporation.This program involved the tenders for drilling rigs as well as the procurementof all associated well services and equipment, which is expected to befinalized by March 2014. Red Emperor's JV partners have also advised that drilling permits are expectedto be obtained in Q2 2014 and after construction of the well sites the JointVenture expected to be in a position to start drilling in H2 2014. Initialtargets will be for oil and gas but it is anticipated that it will be necessaryto hydofrack the structures which lie in the Upper Bathonian section. Theoperator has also advised they will be determining the CBM potential of thereservoir. Red Emperor remains free carried for the next exploration well to bedrilled within either block, thus considerably reducing its expenditure on thisproposed program. The drill program has necessitated a revision of the PSA extending the drillingtimetable into 2015. As previously announced, the Joint Venture continues to advance discussionswith potential farm-in and purchase participants. In the meantime the JVremains committed to progressing and meeting the commitments on the licenses. Puntland Project Whilst there was little on-ground activity carried out by the Joint Venture inPuntland over the quarter, a number of key initiatives have been outlined byRed Emperor's partner and operator, Horn Petroleum (TSXV: HRN) with somepreliminary work expected to commence in Q1, 2014. This work will include fieldresearch and reconnaissance across both sites, face-to-face liaison with keystakeholders and updated security assessments of both blocks (and potentialdrilling sites). As well as this proposed deployment, the Joint Venture was last weekrepresented by Horn Petroleum COO, Mark Dingley, at the PresidentialInauguration of Puntland's newly elected fifth President, Dr Abdiweli Ali Gas.Dr Gas - who studied at several US universities, including Harvard - defeatedthe incumbent Abdirahman Farole by one vote in the recently held election. MrFarole accepted defeat, saying the peaceful election was a model for the restof Somalia. Red Emperor would like to publicly thank former President Farole for his timein office that saw the first oil exploration wells drilled in Puntland in over20 years. We look forward to a strong relationship with the new President andgovernment, which will hopefully see more incident free exploration in Puntlandover the coming years as well as commercial success. 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 (87) (559) * development - - * production - - * administration (294) (585) Dividends received - - Interest and other items or a similar nature 100 216received Interest and other costs of finance paid - - Income taxes paid - - Other Receipts 48 48 Net operating Cash Flows (233) (880) 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 - - Loans to other entities - - Loans repaid by other entities - - Proceeds from underwriting - - Net investing cash flows - - Cash flows related to financing activities Proceeds from raisings - - Proceeds from sale of forfeited shares - - Proceeds from borrowings - - Repayment of borrowings - - Dividends paid - - Costs associated with issue of shares - - Net financing cash flows - - Net increase / (decrease) in cash held (233) (880) Cash at the beginning of the quarter / year to 11,330 11,977date Exchange rate adjustments - - CASH AT THE END OF THE QUARTER 11,097 11,097 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)Jonathan Evans/Daniel Fox-Davies +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 conventional well in July 2011 (Mukhiani-1) the JV began evaluating thelarge unconventional CBM potential of the area, as it is seen to be relativelylow risk and has the potential to contribute cash flow to fund furtherexploration if successful. A strategic review has also been commissioned toidentify potential drilling locations in Block VIb that were highlighted asprospective from the initial survey in 2009 as well as allowing the JointVenture to update the reserve and resource potential across the two licenseareas. Competent Person Subject 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.