12 April
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 March
2016.
Philippines (SC 55)
The joint venture is still awaiting a formal response from the
Philippines Department of Energy (DoE) to its request for a
two-year moratorium over Block SC 55. The request has been
processed by the Petroleum Resources Development Division with the
JV hopeful of written confirmation from the DoE in the coming
weeks. The consortium intends to undertake further technical
studies during the moratorium period, including a Quantitative
Interpretation (QI) Study.
As announced previously, Otto Energy Limited (ASX: OEL) has
advised the JV of its intention to exit the Block SC 55 as part of
its strategy to focus on its North American assets. Red Emperor
intends to have its full, proportionate interest be assigned and as
a result its working interest will increase from 15% to 37.5%.
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 an agreement with the potential purchaser have been due to
volatility in the oil and gas price and political instability in
the region. Red Emperor is not involved in these negotiations and
can provide no certainty as to the likelihood of a successful
outcome. The market will be updated when further information
becomes available.
Corporate
Over the course of the last 3 months, Red Emperor has reviewed
and conducted high level due diligence on a number of projects and
opportunities, both in the oil & gas and resources sector.
While committed to its existing JV in the Philippines, the Board
believes additional asset(s) would better diversify the Company and
could potentially take advantage of the Company’s substantial cash
balance. To date, the Red Emperor has not progressed any of these
opportunities beyond due diligence, however it remains committed
and focused on identifying value for shareholders while at the same
time, responsibly managing the Company’s healthy cash position.
For further information please visit
http://www.redemperorresources.com/ or contact:
Red Emperor
Greg Bandy +61 8 9212 0102
Grant Thornton UK LLP
Philip Secrett/Jen Clarke/Jamie Barklem +44 20 7383 5100
Brandon Hill Capital Limited
Jonathan Evans +44 20 3463 5010
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 March 2016 |
Consolidated statement of cash
flows
Cash flows related to operating activities |
Current quarter
$A’000 |
Year to date (9
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 |
-
-
-
(282) |
(5,100)
-
-
(880) |
1.3 |
Dividends received |
- |
- |
1.4 |
Interest and other
items of a similar nature received |
61 |
187 |
1.5 |
Interest and other
costs of finance paid |
- |
- |
1.6 |
Income taxes paid |
- |
- |
1.7 |
Other: Refund of
Hawkeye-1 well costs |
- |
426 |
|
Net Operating Cash Flows |
(221) |
(5,367) |
|
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) |
(221) |
(5,367) |
1.13 |
Total operating and
investing cash flows (brought forward) |
(221) |
(5,367) |
|
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 |
(221) |
(155) |
1.20 |
Cash at beginning of
quarter/year to date |
12,251 |
12,494 |
1.21 |
Exchange rate
adjustments to item 1.20 |
(160) |
(469) |
1.22 |
Cash at end of
quarter |
11,870 |
11,870 |
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 |
71 |
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
$71k
|
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 |
11,870 |
12,251 |
5.2 |
Deposits at call |
- |
- |
5.3 |
Bank overdraft |
- |
- |
5.4 |
Other (provide
details) |
- |
- |
|
Total: cash at end
of quarter (item 1.22) |
11,870 |
12,251 |
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) |
|
|
|
|
Compliance
statement
1
This statement has been prepared under accounting policies which
comply with accounting standards as defined in the Corporations Act
or other standards acceptable to ASX (see note 5).
2
This statement does give a true and fair view of the matters
disclosed.
Sign
here:
Date: 12 April 2016
Print name: GREG BANDY
Managing Director
Notes
1
The quarterly report provides a basis for informing the market how
the entity’s activities have been financed for the past quarter and
the effect on its cash position. An entity wanting to
disclose additional information is encouraged to do so, in a note
or notes attached to this report.
2
The “Nature of interest” (items 6.1 and 6.2) includes options in
respect of interests in mining tenements and petroleum tenements
acquired, exercised or lapsed during the reporting period. If
the entity is involved in a joint venture agreement and there are
conditions precedent which will change its percentage interest in a
mining tenement or petroleum tenement, it should disclose the
change of percentage interest and conditions precedent in the list
required for items 6.1 and 6.2.
3
Issued and quoted securities The issue price and
amount paid up is not required in items 7.1 and 7.3 for fully paid
securities.
4
The definitions in, and provisions of, AASB 6: Exploration for
and Evaluation of Mineral Resources and AASB 107: Statement
of Cash Flows apply to this report.
5
Accounting Standards ASX will accept, for example, the use
of International Financial Reporting Standards for foreign
entities. If the standards used do not address a topic, the
Australian standard on that topic (if any) must be complied
with.
== == == == ==
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
March 2016 quarter: Nil
Beneficial percentage interests in farm-in or farm-out
agreements acquired or disposed of during the March 2016 quarter: Nil