28 January
2016
Red Emperor
Resources NL (“Red Emperor”)
Quarterly
Reports
For The Period
Ending 31 December 2015 and Appendix
5B
The Board of Red Emperor Resources NL (“Red Emperor” or the
“Company”) provides the following commentary and Appendix 5B for
the period ending 31 December
2015.
Philippines (SC 55)
Red Emperor advised during the December quarter that its Joint
Venture partner and Operator, Otto Energy Limited (ASX: OEL)
requested that a two-year moratorium be granted by the Philippines
Department of Energy over SC 55. The JV fulfilled the work
obligation under the current exploration Sub-Phase by drilling the
Hawkeye-1 exploratory well in August 2015. Although the well
did not encounter gas in commercial quantities, it proved the
presence of an active petroleum system in the contract area, which
hosts the “Cinco Prospect” as well as several other leads.
The consortium intends to undertake further technical studies
during the moratorium period, including a Quantitative
Interpretation (QI) Study. QI is a relatively recent geophysical
technique that is designed to gain a better understanding of
existing and potential petroleum reservoirs. The Joint Venture
expects a response from the Department of Energy with respect to
its moratorium request in Q1 2016.
Subsequent to the end of the quarter, Red Emperor was advised by
Otto Energy of its intention to exit the Joint Venture as part of
its strategy to focus on its North American assets. As a result,
Red Emperor would have the option to either maintain its 15%
participating interest in SC 55 or be assigned a percentage of Otto
Energy’s interest on a pro-rata basis. In this instance, Red
Emperor’s participating interest could be increased by up to 22.5%
to 37.5%. Red Emperor is considering its options and will advise
the market accordingly.
Georgia
Red Emperor, a 20% shareholder of Strait Oil and Gas Limited
(Strait), a Gibraltarian company with a valid Production Sharing
Contract (PSC) across Block VIa in the Republic of Georgia,
continues to be advised of ongoing negotiations with a potential
purchaser of the PSC. Red Emperor understands that delays in
reaching agreement with the potential purchaser have been due to
volatility in the oil and gas price and political instability in
the region. Strait is still hopeful of a conclusion to the
negotiations before the end of Q1 2016.
For further information please visit
http://www.redemperorresources.com/ or contact:
Red Emperor
Resources:
Greg
Bandy
+61 8
9212
0102
Grant Thornton UK LLP (Nominated Adviser):
Philip Secrett, Jen Clarke, Jamie
Barklem
020 7383
5100
Appendix 5B Mining
exploration entity and oil and gas exploration entity quarterly
report
Introduced 01/07/96 Origin Appendix 8 Amended
01/07/97, 01/07/98, 30/09/01, 01/06/10,
17/12/10, 01/05/2013
Name of entity |
RED EMPEROR RESOURCES
NL |
ABN |
|
Quarter ended (“current
quarter”) |
99 124 734 961 |
|
31 December 2015 |
Consolidated statement of cash
flows
Cash flows related to operating activities |
Current quarter
$A’000 |
Year to date (6
months)
$A’000 |
1.1 |
Receipts from product
sales and related debtors |
- |
- |
1.2 |
Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) administration |
-
-
-
(184) |
(5,100)
-
-
(598) |
1.3 |
Dividends received |
- |
- |
1.4 |
Interest and other
items of a similar nature received |
62 |
126 |
1.5 |
Interest and other
costs of finance paid |
- |
- |
1.6 |
Income taxes paid |
- |
- |
1.7 |
Other: Refund of
Hawkeye-1 well costs |
398 |
426 |
|
Net Operating Cash Flows |
276 |
(5,146) |
|
Cash flows related to investing activities |
|
|
1.8 |
Payment for purchases
of: (a)
prospects
(b) equity investments
(c) investment in associate |
-
-
- |
-
-
- |
1.9 |
Proceeds from sale
of: (a) prospects
(b) equity investments
(c) other fixed assets |
-
-
- |
-
-
- |
1.10 |
Loans to other
entities |
- |
- |
1.11 |
Loans repaid by other
entities |
- |
- |
1.12 |
Other (provide details
if material) |
- |
- |
|
Net investing cash flows |
- |
- |
1.13 |
Total operating and
investing cash flows (carried forward) |
276 |
(5,146) |
1.13 |
Total operating and
investing cash flows (brought forward) |
276 |
(5,146) |
|
Cash flows related to financing activities |
|
|
1.14 |
Proceeds from issues of
shares, options, etc. |
- |
5,600 |
1.15 |
Proceeds from sale of
forfeited shares |
- |
- |
1.16 |
Proceeds from
borrowings |
- |
- |
1.17 |
Repayment of
borrowings |
- |
- |
1.18 |
Dividends paid |
- |
- |
1.19 |
Other – fundraising
costs |
- |
(388) |
|
Net financing cash
flows |
- |
5,212 |
|
Net increase (decrease) in cash held |
276 |
66 |
1.20 |
Cash at beginning of
quarter/year to date |
12,118 |
12,494 |
1.21 |
Exchange rate
adjustments to item 1.20 |
(143) |
(309) |
1.22 |
Cash at end of
quarter |
12,251 |
12,251 |
Payments to directors of the entity,
associates of the directors, related entities of the entity and
associates of the related entities
|
Current quarter
$A'000 |
1.23 |
Aggregate amount of payments to the parties included in item
1.2 |
69 |
1.24 |
Aggregate amount of loans to the parties included in item 1.10 |
Nil |
1.25 |
Explanation necessary for an understanding of the transactions |
|
Payment of Directors fees and
Remuneration
$69k
|
Non-cash financing and investing
activities
2.1 |
Details of financing
and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash
flows |
|
n/a |
2.2 |
Details of outlays made
by other entities to establish or increase their share in projects
in which the reporting entity has an interest |
|
n/a |
Financing facilities available
Add notes as necessary for an
understanding of the position.
|
|
Amount available
$A’000 |
Amount used
$A’000 |
3.1 |
Loan facilities |
- |
- |
3.2 |
Credit standby
arrangements |
- |
- |
Estimated cash outflows for next
quarter
|
|
$A’000 |
4.1 |
Exploration and
evaluation |
- |
4.2 |
Development |
- |
4.3 |
Production |
- |
4.4 |
Administration |
200 |
|
Total |
200 |
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the
consolidated statement of cash flows) to the related items in the
accounts is as follows. |
Current quarter
$A’000 |
Previous quarter
$A’000 |
5.1 |
Cash on hand and at
bank |
12,251 |
12,118 |
5.2 |
Deposits at call |
- |
- |
5.3 |
Bank overdraft |
- |
- |
5.4 |
Other (provide
details) |
- |
- |
|
Total: cash at end
of quarter (item 1.22) |
12,251 |
12,118 |
Changes in interests in mining
tenements and petroleum tenements
|
|
Tenement reference |
Nature of interest
(note (2)) |
Interest at beginning of
quarter |
Interest at end of
quarter |
6 |
Interests
in mining tenements held |
|
See Appendix 1
below |
- |
- |
- |
6.1 |
Interests in mining
tenements tenements relinquished, reduced or lapsed |
- |
- |
- |
- |
6.2 |
Interests
in mining tenements tenements acquired or increased |
- |
- |
- |
- |
Issued and quoted securities at end of
current quarter
Description includes rate of interest
and any redemption or conversion rights together with prices and
dates.
|
Total number |
Number quoted |
Issue price per
security (see note 3) (cents) |
Amount paid up per
security (see note 3) (cents) |
7.1 |
Preference +securities
(description) |
|
|
|
|
7.2 |
Changes during
quarter
(a) Increases through issues
(b) Decreases through returns of capital, buy-backs,
redemptions |
|
|
|
|
7.3 |
+Ordinary
securities |
425,292,776 |
425,292,776 |
|
Fully Paid |
7.4 |
Changes during
quarter
(a) Increases through issues
(b) Decreases through returns of capital,
buy-backs |
|
|
|
|
7.5 |
+Convertible
debt securities (description) |
|
|
|
|
7.6 |
Changes during
quarter
(a) Increases through issues
(b) Decreases through securities matured, converted |
|
|
|
|
7.7 |
Options |
4,500,000
4,320,000 |
- |
Exercise Price
$0.055
$0.08 |
Expiry Date
31 December 2017
2 July 2018 |
7.8 |
Issued during
quarter |
|
|
|
|
7.9 |
Exercised during
quarter |
|
|
|
|
7.10 |
Expired during
quarter |
|
|
|
|
7.11 |
Debentures
(totals only) |
|
|
|
|
7.12 |
Unsecured notes
(totals only) |
|
|
|
|
Appendix 1 – Interests in mining
tenements held
Tenement Reference |
Location |
Working Interest at
Beginning of Quarter |
Acquired/
(Disposed) |
Working Interest at End of Quarter |
Block
Vla |
Republic of Georgia |
20% |
- |
20% |
Service
Contract 55 |
Philippines |
15% |
- |
15% |
Holder:
Oil &
Gas Beneficial percentage interests held in farm-in or farm- out
agreement.
Mining tenements acquired and disposed during the
December 2015 quarter: Nil
Beneficial percentage interests in farm-in or farm-out
agreements acquired or disposed of during the December 2015 quarter: Nil