Drilling update - Hawkeye-1

RED EMPEROR RESOURCES NL - Drilling update - Hawkeye-1

PR Newswire

London, August 10

DRILLING UPDATE – HAWKEYE-1

Red Emperor Resources NL (ASX | AIM: RMP) provides the following update with respect to the drilling of the Hawkeye-1 exploration well, offshore Palawan Basin in the Philippines.

The Hawkeye-1 exploration well was spud on 31 July 2015 and since then operations have run smoothly with the Joint Venture experiencing excellent performance from both the rig and service companies. After the installation of the 36” conductor at 1,906m the well was drilled (26”) and cased (20”) to 2,449m. Installation and testing of the blow-out preventer (BOP) has been completed, along with the 17 ½” hole to 2,664m. Current operations involve the setting of 13 ?” casing in anticipation for drilling the 12 ?” hole to the primary target reservoir.

Red Emperor will continue to update the market with respect to the drilling operations in conjunction with the JV after target depth has been reached.

For and on behalf of the Board

Greg Bandy

Managing Director

SC55 is located in the southwest Palawan Basin and covers an area of 9,880km2. 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. The Hawkeye prospect was identified on 2D seismic in 2007 and further defined with a 600km2 3D seismic acquisition in late 2009. Hawkeye contains a 'Best Estimate' STOIIP of ~480 MMbbls of oil and a 'Best Estimate' Gross Prospective Resource of 112 MMbbls (RMP net 14.3 MMbbls) (refer to the Company's announcement dated 2 March 2015).