Red Emperor Resources NL Quarterly Activities and Cashflow Report (7252K)

TIDMRMP

RNS Number : 7252K

Red Emperor Resources NL

24 April 2020

24 April 2020

Red Emperor Resources NL

Quarterly Activities and Cashflow Report

For the Period ended 31 March 2020

The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("RMP", "Red Emperor" or the "Company") is pleased to provide the following commentary on its activities and an Appendix 5B for the quarter ended 31 March 2020.

North Perth Basin, Western Australia

During the quarter, Red Emperor funded the completion of the existing committed work programme (comprising geological and geophysical studies) required under the final year of exploration permit WA-481-P in the offshore Perth Basin. This work, which was managed by Key Petroleum, was completed on time and on budget (A$150,000). The existing JV partners, Pilot Energy - 60% interest and Key Petroleum - 40% interest, duly applied to the National Offshore Petroleum Titles Administrator (NOPTA) for a renewal of the permit prior to its scheduled expiry date of 19 February 2020 and are still awaiting a formal response.

Red Emperor has an exclusive option to acquire a 70% interest in, and the right to operate (subject to any requisite regulatory approval(s)), WA-481-P, in return for paying the JV partners collectively A$500,000. Red Emperor has until 15 business days after NOPTA's approval of the abovementioned permit renewal application to exercise such option.

Alaska North Slope

The Joint Venture ("JV"), as part of a collective strategy, engaged with a number of major Alaskan operating companies during the quarter with respect to a potential sale of its interest in the Western Blocks. Despite receiving indicative interest from three parties, the current state of global equity and specifically oil markets have made progressing any such potential transaction(s) particularly difficult. The operator, on behalf of the JV, is in discussions with the relevant regulatory authorities in Alaska in relation to seeking relief on the rentals due on 1 May 2020 and whilst there is no guarantee that such discussions will result in any relief being granted, the Company will provide an update upon any such eventuality.

Philippines (Block SC55)

During the quarter, Red Emperor received the requisite formal approval for the previously announced reassignment of its equity interest in Block SC55 from the Philippine's Department of Energy.

Corporate

Whilst the Company has continued to conduct high level due diligence on a number of potential projects around the world, it must be noted that the current state of the global economy, and in particular depressed oil prices, has made valuing companies and assets in the sector particularly difficult. With a strong balance sheet and no debt or onerous obligations, Red Emperor can afford to continue to be patient in the knowledge that it is well positioned to take advantage of any opportunistic attractive prospects as and when they become available and at a time when investment in such assets is prudent.

At the end of the quarter, the Company had cash at bank of approximately A$4.7m. Please refer to the Appendix 5B for further details, which can be viewed at the following link: http://www.rns-pdf.londonstockexchange.com/rns/7252K_1-2020-4-23.pdf

Red Emperor's Tenements

The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3 for the quarter ended 31 March 2020.

 
 Tenement                          Location               Area       Interest 
                                  ---------------------  --------- 
 Alaska 
--------------------------------  ---------------------  ---------  --------- 
 Western Blocks 
  (ADL#s 391718, 391719, 319720 
  & 391721)                        North Slope, Alaska    92 km(2)   31.5% 
--------------------------------  ---------------------  ---------  --------- 
 

The Company's interest in Block SC55 (Palawan Basin, Philippines) was formally relinquished during the quarter ended 31 March 2020.

   For further information, please visit www.redemperorresources.com   or contact: 
 
 Red Emperor Resources NL            [phone] 
 Greg Bandy 
 
 Strand Hanson Limited (Nominated    [phone] 
  Adviser)                            3494 
 James Harris 
 
                                     [phone] 
 Brandon Hill Capital (UK Broker)     5010 
 
 708 Capital Pty Ltd (Australian 
  Broker)                            [phone] 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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April 24, 2020 02:00 ET (06:00 GMT)