RMP Red Emperor Resources Nl

 
TIDMRMP 
 
16 February 2015 
 
                           Red Emperor Resources NL 
 
                                COMPANY UPDATE 
 
The Board of Red Emperor Resources NL ("Red Emperor" or the "Company") is 
pleased to provide the following update to the market. 
 
Puntland 
 
Further to the Company's recent quarterly report dated 29 January 2015, the 
Company's Joint Venture (JV) continues to significantly reduce its presence in 
Bosaso, Puntland and will refrain from any operational activity and associated 
expenditures pending a resolution of the political situation between the 
Regional Government of Puntland and the Federal Government of Somalia regarding 
the legitimacy of oil concession contracts. Given the considerable efforts 
taken by the JV to date in Puntland (Somalia), the JV has requested a two year 
extension to the current exploration period from the Government of Puntland to 
allow time for these political challenges to be resolved. 
 
Red Emperor is optimistic that agreements can be reached to enable the JV to 
remain in control its two PSCs that provide both exposure and leverage to 
potentially multiple billion barrels of oil. 
 
Georgia 
 
With respect to the well obligation that exists on Block VIb under the 
production sharing contract (PSC), Strait Oil & Gas advises that it has now 
agreed a drilling programme with the Georgian Oil & Gas Ministry who have also 
confirmed that a valid drilling license is in place. All technical aspects of 
the well, along with the cost budget, have been approved with a drill rig and 
all required services on standby. Range Resources remain in negotiations with a 
third party to reduce their financial exposure associated with the proposed 
well and Red Emperor continues to monitor the progress of these discussions. 
 
Corporate 
 
Red Emperor recently sold its direct equity investment in Highfield Resources 
Limited (ASX: HFR) in accordance with its treasury management strategy. The 
shares were sold at price of 80c per share, which netted the Company A$798,279 
after brokerage, a 66% return on its A$480,000 investment. Red Emperor's 
current cash position is in excess of A$10m, approx. GBP5.15m, which equates to 
3.84c and 1.93p per share. 
 
Managing Director, Greg Bandy, commented, "The Board remains committed to 
delivering shareholder value and is in advanced discussions with a number of 
projects that the Board believes have that potential. The fall in oil prices 
has increased the number of opportunities on the market and the Board are now 
seeing more realistic farm-in terms offered and lower industry costs. With a 
strong balance sheet and low cash burn the Company is in a strong position to 
exploit these opportunities, which would have been unobtainable just six months 
ago. In that regard, we are excited by the outlook for the Company." 
 
For further information please visit 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 
 
Fox-Davies Capital Limited 
Jonathan Evans +44 20 3463 5010 
 
 
 
END 
 

Red Emperor Resources Nl (LSE:RMP)
Historical Stock Chart
From Mar 2024 to Apr 2024

Red Emperor Resources Nl (LSE:RMP)
Historical Stock Chart
From Apr 2023 to Apr 2024