Red Emperor Resources NL Quarterly Report
July 28 2015 - 2:04AM
UK Regulatory
TIDMRMP
28 July 2015
Red Emperor Resources NL ("Red Emperor")
Quarterly Reports
For The Period Ending 30 June 2015
The Board of Red Emperor Resources NL ("Red Emperor" or the "Company") is
pleased to provide the following commentary and Appendix 5B for the period
ending 30 June 2015.
Philippines (SC55)
Red Emperor announced on 24 July 2015 that the Company had received formal
notification from the Philippines Department of Energy that approval for the
assignment of its 15 per cent. working interest in Block SC55 had been granted.
This was the final condition precedent to be met with respect to Red Emperor's
farmin agreement with Otto Energy Ltd (ASX: OEL) ("Otto"). With all conditions
satisfied, the Company confirmed that the agreement had been completed.
During the quarter the Company also announced that its Joint Venture partner
and Operator of Block SC55, Otto, had executed a binding contract with Maersk
Drilling to secure the Maersk Venturer ultra-deepwater drill ship to drill the
Hawkeye-1 exploration well. Maersk Drilling was issued with a formal notice in
respect of the mobilisation to the Hawkeye-1 location in early July 2015.
Mobilisation will commence on or around 31 July 2015 and is expected to take
approximately 1 to 2 days, with drilling operations to commence upon arrival of
the rig on location. The well is expected to take around 23 days to drill.
The total expected cost remains within guidance of US$30 to $35 million. This
cost is a dry-hole well-cost estimate. If the well encounters hydrocarbons then
a more detailed evaluation, including well logging, will be undertaken. Red
Emperor's well-cost exposure is capped at US$5.625 million.
SC55 is located in the southwest Palawan Basin and covers an area of 9,880km2.
It is 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).
Puntland
During the quarter Red Emperor's Joint Venture ("JV") partner and operator,
Africa Energy Corp. (previously Horn Petroleum Corp.) (together "Africa Energy"
or the "Operator"), gave notice to the Puntland State of Somalia advising of
its intention to withdraw from the January 2007 Production Sharing Agreements
("PSAs") which cover the Nugaal and Dharoor Blocks.
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 uncertainties 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.
Georgia
During the quarter, the Georgian Ministry of Energy formally notified Strait
Oil & Gas Limited ("Strait") that the Production Sharing Contract (PSC) over
Block VIb had been terminated. The Ministry cited the non-performance of
obligations, specifically the requirement to drill a well in accordance with
the stipulated procedure. Red Emperor notes that this obligation has been
acknowledged by its JV partner, Range Resources Limited (ASX: RRS, AIM: RRL,
"Range"), both internally within JV correspondence as well as publicly.
Red Emperor believes it fulfilled its obligations with respect to Block VIb,
specifically cash contributions towards the second well of a two well program,
as per its Shareholder and Subscription Agreements (the "Agreements"). The
Company continues to reserve any and all legal rights under the
Agreements.
This outcome does not, in any way, affect the validity of Block VIa, which
remains the subject of interest from various third party participants seeking
to either acquire or farmin to the block. Negotiations have yet to progress to
a level that warrants disclosure, however the Company looks forward to updating
the market in due course.
Corporate
During the quarter the Company announced an oversubscribed placing through its
London broker, Brandon Hill Capital, and its Australian broker, 708 Capital, of
72,000,000 new ordinary shares at 4 pence (A$0.08) per share to raise GBP2.88
million (A$5.76 million) before expenses. Proceeds from the raise and existing
cash resources will principally be used to fund the upcoming drilling and
potential appraisal activities in the Philippines.
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 30 June 2015
Consolidated statement of cash flows
Current quarter Year to date (12
Cash flows related to operating $A'000 months)
activities $A'000
1.1 Receipts from product sales and - -
related debtors
1.2 Payments for (a) exploration & (20) (366)
evaluation - -
(b) - -
development (206) (1,022)
(c)
production
(d)
administration
1.3 Dividends received - -
1.4 Interest and other items of a
similar nature received 78 338
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Other (provide details if - -
material)
Net Operating Cash Flows (148) (1,050)
Cash flows related to investing
activities
1.8 Payment for purchases of: (a) - -
prospects - (182)
(b) - (59)
equity investments
(c)
investment in associate
1.9 Proceeds from sale of: - -
(a) prospects - 798
(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 - 557
1.13 Total operating and investing cash
flows (carried forward) (148) (493)
1.13 Total operating and investing cash
flows (brought forward) (148) (493)
Cash flows related to financing
activities
1.14 Proceeds from issues of shares, 680 2,803
options, etc.
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 - (137)
Net financing cash flows 680 2,666
Net increase (decrease) in cash 532 2,173
held
1.20 Cash at beginning of quarter/year 11,962 10,321
to date
1.21 Exchange rate adjustments to item - -
1.20
1.22 Cash at end of quarter 12,494 12,494
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
