26 Oct 2011 07:55
26 October 2011 Red Emperor Resources NL ("Red Emperor" or "the Company") Quarterly Report for Period Ending 30 September 2011 Issued Capital 152.47M* ASX Code RMP Closing price A$0.29* AIM Code RMP Closing Price £0.21*Market Cap A$44.21m** as at 30 September 2011
The Board of Red Emperor is pleased to provide the following commentary to be read in conjunction with the Appendix 5B summary (Quarterly Cash Flow Report) below.
SEPTEMBER 2011 Quarter - Highlights
* Georgian drilling commenced (Mukhiani-1 Well) * Puntland Joint Venture Partner & operator signed a drilling contract & third party services contracts for milestone well to be drilled in Q4, 2011
Corporate
During the quarter the Company held a General Meeting in respect of its change of activity to a natural resources explorer and recompliance with the ASX Listing Rules. All resolutions were passed at the general meeting on 15 July 2011 and the Company re-listed on ASX on 25 July 2011.
Puntland Projects
During the quarter the operator of the Puntland Project, Africa Oil Corp, signed landmark drilling contract with Sakson Drilling and Oil Services.
All subsequent drilling-related third party service contracts have now been entered into with the mobilisation of required personnel and equipment due to commence which will allow for the spudding of the first well during the fourth quarter of this year.
Georgia Project
During the quarter the Company announced the spudding of the first well in Georgia (Mukhiani-1).
Drilling operations have continued on the Georgian Project during the current quarter and as at 11 October 2011 the well had reached a depth of 1544 meters with a proposed target depth of 3500 meters. A full suite of wireline logs has been successfully recorded and additional valuable information has been obtained through the successful collection of 10 sidewall cores from critical intervals. A Vertical Seismic Profile (VSP) survey is being run and the company expects to be able to update the market on the well in the coming days.
Jillewarra Project
During the quarter joint venture partner, MetalBank Limited, released initial results from the second phase geochemical soil sampling which defined 3 potential targets.
Appendix 5B Summary - Consolidated Statement of Cashflow
Current Quarter Year to date $A'000 (12 months) A$'000
Cashflows related to operating activities Receipts from product sales and related - -debtors Payments for: * exploration and evaluation (6,052) (6,052) * development - - * production - - * administration (480) (480) Dividends received - -
Interest and other items or a similar nature 62 62received Interest and other costs of finance paid - -
Income taxes paid - - Other - - Net operating cashflow (6,470) (6,470)
Cashflows related to investing activities Payments for the purchase of: * prospects - - * equity investments - - * investments- asset acquisition escrow acc - - Proceeds from the sale of: * prospects - - * equity investments - - Loans to other entities - - Other - - Net investing cashflows - -
Cashflows related to financing activities Proceeds from issue of shares, options etc. 1,400 1,400 Proceeds from sale of forfeited shares - -
Proceeds from borrowings - - Repayment of borrowings - - Dividends paid - -
Costs associated with issue of shares (191) (191) Net financing cashflows 1,209 1,209 Net increase / (decrease) in cash held (5,261) (5,261) Cash at the beginning of the quarter / year to 7,853 7,853date Exchange rate adjustments 288 288 CASH AT THE END OF THE QUARTER 2,880 2,880
The above table is extracted from the Appendix 5B, a full copy of which is available from the Company's website.
For further information please visit www.redemperorresources.com or contact:
Red EmperorGreg Bandy +61 8 9212 0102Cairn Financial Advisers LLP (Nominated Adviser)Jo Turner +44 20 7148 7900Tony RawlinsonOld Park Lane Capital plc (Broker)Luca Tenuta +44 20 7493 8188Michael ParnesTavistock CommunicationsPaul Youens +44 20 7920 3150Ed Portman
XLON