29 Jul 2011 07:14
29 July 2011 Red Emperor Resources NL ("Red Emperor" or "the Company") Quarterly Report for Period Ending 30 June 2011 Issued Capital 147.61 M* ASX Code RMP Closing price A$0.34* AIM Code RMP Closing Price £0.249 *Market Cap A$50.19m** as at 30 June 2011
The Board of Red Emperor Resources Limited (Company) is pleased to provide the following commentary to be read in conjunction with the Appendix 5B (Quarterly Cash Flow Report) which is attached.
JUNE 2011 Quarter - Highlights
* Successfully listed on AIM in London * Completion of Georgian Project Acquisition Agreements * Mobilised Drill Rig to Georgia (spudding occurred on 14 July 2011 and drilling currently underway) * Puntland joint venture partner and PSA operator announced execution of a letter of intent with a drilling subcontractor to drill the first exploration well in Puntland in over 20 years
Corporate
During the quarter the Company successfully listed on AIM in London, effective 23 June 2011. Since that time the company has seen a considerable percentage of its registry move to the UK with the traded volume of its shares on AIM increase substantially over the last few weeks. The level of interest in RMP since listing on AIM has been substantial, not only from brokers, but also from analysts and the press, which as more than justified the board's decision to dual list.
In addition the Company issued a Notice of General Meeting in respect of its change of activity to a natural resources explorer and recompliance with the ASX Listing Rules. All resolutions were subsequently passed at the general meeting on 15 July 2011 and the Company has re-complied with the ASX Listing Rules.
Georgia Project
During the quarter the Company executed formal agreements to acquire a 20% interest in two onshore oil and gas blocks in the Republic of Georgia ("Georgian Project").
The drilling program for the Georgian Project was confirmed and drill rig mobilisation commenced on the first well during the quarter. The spudding of the first well was subsequently announced on 14 July 2011.
Puntland Projects
During the quarter Red Emperor's JV partner and operator of the Puntland Project, Africa Oil Corp, signed a letter of intent with a drilling subcontractor to drill the first exploration well in the Dharoor Valley, Puntland. Africa Oil continues close negotiations with the Puntland Government on various items in readiness for this historic well. With these negotiations it is Red Emperor's expectation that a formal drilling contractor will be appointed in the near future.
Jillewarra Project
Subsequently to end of quarter MetalBank Limited, joint venture partner, has 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 (2,864) (3,379) * development - - * production - - * administration (670) (1,526) Dividends received - -
Interest and other items or a similar nature 107 193received Interest and other costs of finance paid - (9)
Income taxes paid - - Other 5 5 Net operating cashflow (3,422) (4,716)
Cashflows related to investing activities Payments for the purchase of: * prospects - - * equity investments - (24) * investments- asset acquisition escrow acc - (2,207) Proceeds from the sale of: * prospects - - * equity investments 213 1,028 Loans to other entities - - Other - - Net investing cashflows 213 (1,203)
Cashflows related to financing activities (3,209) (5,919) Proceeds from issue of shares, options etc. - 14,600 Proceeds from sale of forfeited shares - -
Proceeds from borrowings - - Repayment of borrowings - - Dividends paid - -
Costs associated with issue of shares - (888)
Net financing cashflows - 13,712 Net increase / (decrease) in cash held (3,209) 7,793
Cash at the beginning of the quarter / year to 11,062 60date Exchange rate adjustments - - CASH AT THE END OF THE QUARTER 7,853 7,853
For further information please visit www.redemperorresources.com or contact:
Red EmperorGreg Bandy +61 8 9225 2826Cairn 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 PortmanBackground
Red Emperor Resources NL is a natural resources exploration company with interests in the frontier state of Puntland, Somalia, the Republic of Georgia and Western Australia.
* In Puntland, Red Emperor holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys. These two exploration areas cover nearly 40,000km2 and have independently been assessed to potentially contain a combined 19.9 billion barrels of oil in-place. Red Emperor's joint venture partner and PSA operator Africa Oil Corp. has signed a letter of intent with a drilling subcontractor and expects the first well to be drilled in Dharoor in Q3, 2011. * In the Republic of Georgia, Red Emperor has a 20% working interest in onshore blocks VIa and VIb, covering approx. 6,500km2. Joint Venture partner Range Resources Limited last year funded a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of oil-in-place (on a mean 100% basis). Two wells are to be drilled this year as part of the proposed drill program. * The Company also has a 25% interest in the Jillewarra Project, a copper and gold project in Western Australia. This interest is free carried through until bankable feasibility study,