Red Emperor Resources NL SUCESSFUL TRANSFER OF PARTICIPATING INTERESTS (4308L)
April 19 2018 - 2:21AM
UK Regulatory
TIDMRMP
RNS Number : 4308L
Red Emperor Resources NL
19 April 2018
19 April 2018
Red Emperor Resources NL ("Red Emperor")
SUCESSFUL TRANSFER OF PARTICIPATING INTERESTS UNDER SERVICE
CONTRACT NO. 55 (SC55)
The Board of Red Emperor Resources NL ("Red Emperor" or the
"Company") is pleased to provide the following update with respect
to Service Contract 55 (SC55), offshore Palawan Basin in the
Philippines.
This week the Company finally received official confirmation
from the Philippine Department of Energy (DoE) ratifying the
request for the transfer of participating interests in Service
Contract no. 55 (SC55) from Otto Energy Limited (ASX: OEL) to its
partners, Century Red Pte. Ltd (a 100% owned subsidiary of Red
Emperor Resources NL), PaIawan55 Exploration & Production
Corporation and Pryce Gases, Inc.
Red Emperor's equity interest in Block SC 55 is now 37.5%
(previously 15%) after the DoE found the partners to be
"Financially qualified to assume the proposed interests. Legally
qualified to assume the participating interest from Otto Energy
considering that they are existing petroleum companies operating
either as operator and/or consortium members in petroleum service
contracts; And technically qualified, as exemplified by the joint
cooperation and completion of previous exploration activities, such
as the drilled Hawkeye-1 well."
As a result, the participating interests in SC55 are as
follows:
Company Participating Interests
Palawan55 Exploration & Production
Corporation (Operator) 37.50%
------------------------
Century Red Pte. Ltd (Red Emperor Resources) 37.50%
------------------------
Pryce Gases, Inc. 25.00%
------------------------
Total 100%
------------------------
It is also understood that Palawan55 Exploration &
Production Corporation will be the "Operator" of SC 55 as endorsed
by the other remaining partners.
Likewise, the timeline for the moratorium period and Sub-Phase
(SF) 5 has now been revised to reflect the transfer of interest. It
is understood that the minimum work program and budget for the
moratorium period and SF 5 are unaffected by the transfer of
interest, as shown below:
Sub-Phase (SP) Work Program and Budget (WP&B)
Moratorium Period Conduct a Qualitative Interpretation
(Date of approval of transfer (QI) study of the greater
until 13 months thereafter) Hawkeye area, lithology and
petrophysical modeling and
a contingent program of AVO
studies = US$ 478,750
-------------------------------------
SP5 Drill one (1) Ultra-deepwater
(date of end of moratorium well = US$ 3,000,000.00
period until 12 months thereafter)
-------------------------------------
As nominated "Operator" Palawan55 has suggested that partners
hold an Operating Committee Meeting to formalise their appointment
as successor Operator, establish an Operating Committee and agree
on related amendments to the JOA.
With respect to the committed work program, Palawan55 are
currently conducting an inventory of the technical data that had
been turned over by Otto Energy. They have also advised that they
are engaging with consulting groups with respect to the programmed
specialised geophysical studies in order to refine the budget.
Red Emperor participated in a USD $25m exploration well
(Hawkeye-1) within the block in 2015 and contributed in excess of
AUD $5m towards drilling costs. Over USD $50m has been spent
exploring the block to date and a number of drill-ready targets
remain, including the "Cinco" gas prospect which has a best
estimate prospective resource of 1.6tcf recoverable gas. Given the
Hawkeye well discovered gas and a working petroleum system
relatively close to Cinco, Red Emperor believes that Block SC55
remains a key asset for the Company to maintain exposure to.
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 020 7383 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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