17 June 2016
Red Emperor
Resources NL
SC 55 – Moratorium
Granted
Red Emperor Resources NL (ASX | AIM: RMP) is pleased to provide
the following update with respect to Service Contract 55 (SC 55),
offshore Palawan Basin in the
Philippines.
Red Emperor has been advised that
the Joint Venture has formally received approval from the
Philippines Department of Energy for a two-year moratorium, until
23 December 2017, on required work
activity under Service Contract 55. During the moratorium period,
the consortium will conduct specialized geophysical studies in the
area surrounding the Hawkeye prospect which encountered gas shows
when it was drilled last year. Although the Hawkeye 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.
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%.
In conjunction with Red Emperor’s commitment to SC 55, the Board
continues to review and evaluate new opportunities it believes
could compliment the current assets in the portfolio. The Company
looks forward to providing the market with more information on
these potential opportunities as they develop.
For further information please visit
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