17 May 2012
Red Emperor Resources NL
("Red Emperor" or "the Company")
Red Emperor Resources NL (ASX: RMP | AIM: RMP) is pleased to provide an update
on the drilling program in Puntland, Somalia. The update has been provided by
Joint Venture partner and operator, Horn Petroleum Corp. (TSXV: HRN).
The Shabeel well has reached a total depth of 3470 meters and has encountered
metamorphic basement at a depth of 3430 meters. Drilling has been suspended for
It was previously announced that the well encountered 12 - 20m zone of
significant hydrocarbon pay in the Upper Cretaceous Jesomma Formation and Red
Emperor believes this zone will be flow tested at a future date when
appropriate equipment is available in country.
In addition, the well has encountered additional potential net pay sands in the
Jurassic Adigrat Formation shows at a depth of 3246 to 3430 meters, several of
which exhibited oil and gas shows. Petrophysical analysis of the well log data
indicates up to 3 meters of potential hydrocarbon pay in several thin sand
units. They are not considered to warrant testing at this time, but do further
confirm the existence of a working petroleum system.
The rig will now move to the Shabeel North location that is 3.5km north of the
current location with spudding scheduled for the first week of June 2012. The
primary objective of this well will be to evaluate the Upper Cretaceous Jesomma
Sands that appear to be oil bearing at the Shabeel location. Subsequent to the
drilling of this well, it is the intention of the Joint Venture to return to
the Shabeel well and test the Jesomma sands once the necessary testing
equipment has been mobilized into the country.
Subject to reviewing the well log data internally, it is Red Emperor's
intention to exercise its option to participate in Shabeel North and therefore
earn its 20% interest in the two blocks, Dharoor and Nugaal.
Keith Hill, President and CEO of Africa Oil, commented, "We are very encouraged
by the results of the Shabeel well which appears to have confirmed oil bearing
sands in two zones. This has very positive implications for the prospectivity
of the basin. We look forward to the results of the Shabeel North well and to
testing the Jesomma sands to confirm the potential of the block."
For further information please visit www.redemperorresources.com or contact:
Greg Bandy +61 8 9225 2826
Rebecca Sandford +44 20 7025 7040
Cairn Financial Advisers LLP (Nominated Adviser)
Jo Turner +44 20 7148 7900
Fox-Davies Capital Limited (Joint Broker)
Daniel Fox-Davies +44 20 3463 5000
Old Park Lane Capital plc (Joint Broker)
Luca Tenuta +44 20 7493 8188
Paul Youens +44 20 7920 3150
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. The operator and 60% interest
holder, Horn Petroleum Corp. (TSXV: HRN) has completed the first well
(Shabeel-1) in a two well program and is now moving the rig to the second
well (Shabeel North). The two wells are targeting 300mmbls and 375mmbbls of
best estimate Prospective Resources (100% basis). All site construction and
preparation work has been completed on the second well and is now in
readiness to accept the rig and begin drilling.
* In the Republic of Georgia, Red Emperor has a 20% working interest in
onshore blocks VIa and VIb, covering approx. 6,500km2. Joint Venture
partner Range Resources Limited (ASX: RRS | AIM: RRL) previously funded a
410km 2D seismic program with independent consultants RPS Energy
identifying 68 potential structures containing an estimated 2.045 billion
barrels of undiscovered oil-in-place (on a mean 100% basis) with the first
(Mukhiani-1) of two conventional exploration wells having spudded in July
2011. The Company is now focussing on a revised development strategy that
will focus on low-cost, shallow appraisal drilling of the contingent
resources around the Tkibuli-Shaori ("Tkibuli") coal deposit, which
straddles the central sections of the Company's two blocks.