Red Emperor Resources NL Update in relation to Georgian project
April 14 2015 - 02:00AM
UK Regulatory
TIDMRMP
14 April 2015
Red Emperor Resources NL
Red Emperor Resources NL (ASX/AIM: RMP) announces the following update with
respect to its Georgian Project.
Despite Red Emperor again being advised last quarter by the operator, Strait
Oil & Gas ("Strait"), that an agreed drilling program and a valid drilling
licence was in place with the Georgian Oil and Gas Ministry, drilling activity
is yet to commence in Block VIb. Whilst a drill rig and all required services
remain available, Strait's major shareholder, Range Resources Limited
("Range"), who are obligated to fund the drilling program and the costs to the
end of Phase III of the Production Sharing Contract ("PSC") on behalf of the
Joint Venture, has been focused on the disposal of the asset as opposed to
continued further investment.
Red Emperor understands that representatives of Strait will be negotiating to
extend the PSC that covers Block VIb, which was due to expire in March 2015,
however there is no certainty that such an outcome can or will be achieved.
While Red Emperor is hopeful that it will, in the meantime the Company
continues to stand by its position with respect to Range's obligations to drill
a second well and cover the costs of Phase III on Block VIb, which formed part
of the "drilling program" contemplated in its 2011 Subscription Agreement (the
"Agreement"). Red Emperor has met its financial commitment with respect to the
Agreement and is disappointed that drilling activity is yet to commence. The
company will continue to protect its interests with respect to both blocks and
the value they represent.
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
END
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