30 June 2015
Red Emperor
Resources NL
Puntland
Update
Red Emperor Resources NL (ASX | AIM: RMP) has been advised by
its Joint Venture partner and Operator, Africa Energy Corp.
(previously Horn Petroleum Corp.) of its notice to the Puntland
State of Somalia advising of its intention to withdraw from the
January 2007 productions sharing
agreements (“PSAs”) in respect of the Nugaal Block and the Dharoor
Block, effective immediately.
In its notice to the Puntland Petroleum and Minerals Agency,
Africa Energy cited the uncertainty of the current political
climate in Somalia, especially in
respect of the disagreement between the Federal Government of
Somalia and the regional
government of Puntland, over the legitimacy of the PSAs and
potential territorial claims on the Nugaal Block as the principal
reasons for its decisions.
Whilst Red Emperor is
disappointed with this outcome, the Company acknowledges the
political uncertanties that have existed within the country, the
state and the region over the past 3 years, preventing the Joint
Venture from conducting the activities required under the terms of
the PSAs. Red Emperor supports the
Operator in its decision to withdraw from the PSAs.
The Company remains focused on its current Joint Venture in
the Philippines and the upcoming
exploration well (Hawkeye-1) to be drilled in Block SC55, 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). The Operator, Otto Energy, has already secured the
Maersk Venturer drill ship to drill the Hawkeye-1 prospect and the
Company anticipates a spud date towards the end of July 2015. The well is expected to take less than
a month to drill.
A copy of the announcement made by African Energy Corp. can be
found on its website, at the following link
www.africaenergycorp.com.
For further information please visit
http://www.redemperorresources.com/ or contact:
Red
Emperor
Greg Bandy +61 8 9225 2826
Grant Thornton UK LLP
Philip Secrett/Jen Clarke/Jamie
Barklem +44 20 7383 5100
Brandon Hill Capital Limited
Jonathan Evans +44 20 3463 5010