logo
  Join        Login             Stock Quote

RED EMPEROR RESOURCES NL - Quarterly Activities and Cashflow Report

Wednesday, July 31, 2013 2:00 AM


RED EMPEROR RESOURCES NL - Quarterly Activities and Cashflow Report

                                                                   31 July 2013
                           Red Emperor Resources NL
              Quarterly Report for the Period Ending 30 June 2013
Issued Capital: 266M*
ASX Code: RMP            Closing price:    $0.046*
AIM Code: RMP            Closing price:   £0.0312*
* as at 30 June 2013
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 2013.

Georgia Project
During the quarter Red Emperor's Joint Venture Partner and Operator, Strait Oil
& Gas UK, advised that the processing and interpretation of a 200km 2D seismic
program carried out by the Geophysical Institute of Israel ("GII") was
completed and incorporated into a Geological Model.
Results of the Geological Model, which also includes data from the Soviet
period along with the seismic interpretation performed by RPS Energy in 2009,
will hopefully enable the Joint Venture to confirm potential drilling locations
in Block VIb that were highlighted as prospective from the initial survey in
2009, along with allowing the Joint Venture to update the reserve and resource
potential across the two license areas.
Work has also commenced on evaluating the shale gas/oil potential that has been
identified on approximately 3,000km2 with geological mapping and modelling of
this potential expected to be finalised in Q4 2013.
Coal Bed Methane Joint Venture
The Joint Venture Partners, together with the Georgian Industrial Group (GIG),
are continuing to progress plans to commence a feasibility and technical study,
which if positive, is expected to be followed by an initial three to four well
pilot project targeting coal bed methane gas. During the quarter Red Emperor
was advised that site planning for the CBM project had been finalised, with all
plans and locations assessed, mapped and the initial well program agreed with
GIG. Initial geological reports together with an economic model have been
submitted to the Georgian government for approval.
Red Emperor is advised that subject to Government approvals, the implementation
of the Project is scheduled for the beginning of Q4. It has been proposed to
drill a total of four wells initially and connect the obtained gas to the local
pipeline infrastructure.
Potential Farm-in Discussions
During the quarter JV Partner and Strait Oil & Gas' UK shareholder, Range
Resources Limited, advised Red Emperor that it had received farm in / joint
venture interest from a number of parties with respect to both the conventional
and unconventional opportunities across the two licenses. Further updates will
be provided as we are further advised.
Puntland Project
During the previous quarter, Red Emperor's JV partner and operator of its
Puntland Project, Horn Petroleum Corp (TSXV: HRN), has been focused on making
preparations for a seismic acquisition campaign in the Dharoor PSA, which will
include a regional seismic reconnaissance grid in the previously unexplored
eastern portion of the basin as well as prospect specific seismic to delineate
a drilling candidate in the western portion of the basin, where an active
petroleum system was confirmed by the recent drilling at the Shabeel-1 and
Shabeel North-1 locations. The focus of the Dharoor seismic program will be to
delineate new structural prospects for the upcoming drilling campaign.
As previously reported, based on the encouragement provided by these two
Shabeel wells, the JV entered into the next exploration period in both the
Nugaal and Dharoor Valley Production Sharing Contracts ("PSCs") which carry a
commitment to drill one well on each block within an additional 3 year term.
The current operational plan is to contract a seismic crew to acquire
additional data in the Dharoor Valley block and to hold discussions with the
Puntland Government to gain access regarding drill ready prospects in the
Nugaal Valley block.
For and on behalf of the Board

Greg Bandy
Executive Director


Appendix 5B Summary - Consolidated Statement of Cashflow
                                                       Current  Year to Date
                                                       Quarter   (12 months)
                                                        $A'000       $A'000)
Cash flows related to operating activities
Receipts from product sales and related debtors              -             -
Payments for:
  * exploration and evaluation                           (391)       (8,514)
  * development                                              -             -
  * production                                               -             -
  * administration                                       (318)       (1,185)
Dividends received                                           -             -
Interest and other items or a similar nature               166           524
received
Interest and other costs of finance paid                     -             -
Income taxes paid                                            -             -
Other Receipts (refunds)                                     6            11
Net operating Cash Flows                                 (537)       (9,164)

Cashflows related to investing activities
Payments for the purchase of:
  * prospects                                                -             -
  * equity investments                                       -             -
  * investments                                              -             -
Proceeds from the sale of:
  * prospects                                                -             -
  * equity investments                                       -             -
  * investments asset acquisition escrow acc                 -           982
Loans to other entities                                      -             -
Loans repaid by other entities                               -             -
Proceeds from underwriting                                   -             -
Net investing cash flows                                     -           982

Cash flows related to financing activities
Proceeds from raisings                                       -         2,250
Proceeds from sale of forfeited shares                       -             -
Proceeds from borrowings                                     -             -
Repayment of borrowings                                      -             -
Dividends paid                                               -             -
Costs associated with issue of shares                        -         (135)
Net financing cash flows                                     -         2,115

Net increase / (decrease) in cash held                   (537)       (6,067)
Cash at the beginning of the quarter / year to          12,514        18,044
date
Exchange rate adjustments                                    -             -
CASH AT THE END OF THE QUARTER                          11,977        11,977

For further information please visit www.redemperorresources.com or contact:
Red Emperor
Greg Bandy                                                   +61 8 9225 2826
Rebecca Sandford                                            +44 20 7025 7040
Fox-Davies Capital Limited (Nominated Adviser and Broker)
Susan Walker / Simon Leathers                               +44 20 3463 5000
Daniel Fox-Davies / Richard Hail                            +44 20 3463 5000

Background
Red Emperor Resources NL (ASX: RMP | AIM: RMP) is a natural resources
exploration company with interests in the frontier state of Puntland, Somalia
and the Republic of Georgia.
In Puntland, Red Emperor holds a 20% working interest in two licences
encompassing the highly prospective Dharoor and Nugaal valleys. These two
exploration areas cover over 36,000km2. Horn Petroleum, the operator and 60%
interest holder, has completed a two well program with the JV having now
entered the next phase of the two Production Sharing Contracts across both
blocks.
In the Republic of Georgia, Red Emperor has a 20% working interest in onshore
blocks VIa and VIb, covering approximately 6,500km2. After the drilling of the
first well in July 2011 Mukhiani -1 the JV has focused on evaluating the large
unconventional CBM potential of the area, as it is seen to be relatively low
risk and has the potential to contribute cash flow to fund further exploration
if successful.
The Contingent Resource estimate quoted above of 400bcf of CBM gas at the
Tkibuli project is sourced from the publically available report by Advanced
Resources International's ("ARI") prepared in 2009: CMM and CBM development in
the Tkibuli-Shaori Region, Georgia. Advanced Resources International, Inc.,
2009. Prepared for GIG/Saknakhshiri and U.S. Trade and Development Agency. The
report can be viewed at:
http://www.globalmethane.org/documents/toolsres_coal_overview_ch13.pdf
The Joint Venture technical consultants have not yet reviewed the details of
ARI's resource estimate and the reliability of this estimate and its compliance
with the SPE reporting guidelines or other standard is uncertain. Red Emperor
and its JV partners will be seeking to confirm this resource estimate, and seek
to define reserves, through its appraisal program and review of historical data
during the next 12 months.
Competent Person
Subject to the Caveat above regarding the ARI report: All of the technical
information, including information in relation to reserves and resources that
is contained in this document has been reviewed internally by the Company's
technical consultant, Mr Alexander Parks. Mr Parks is a Petroleum Engineer who
is a suitably qualified person with over 15 years' experience in assessing
hydrocarbon reserves and has reviewed the release and consents to the inclusion
of the technical information.
(Source: PR Newswire )
(Source: Quotemedia)

Advertisement
Advertisement



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.