Red Emperor Resources NL ALASKA OPERATIONS UPDATE (9567T)
March 26 2019 - 3:54AM
UK Regulatory
TIDMRMP
RNS Number : 9567T
Red Emperor Resources NL
26 March 2019
26 March 2019
ALASKA OPERATIONS UPDATE
The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("RMP",
"Red Emperor" or the "Company"), provides the following update with
with respect to the recent drilling of the Winx-1 exploration well
("Winx-1") within the Western Blocks, North Slope of Alaska.
completed
Highlights
-- All work associated with the drilling of Winx-1 has been
completed, with the rig and crew having fully demobilised and left
the site
-- Along with the joint venture partners, RMP is proceeding with
its plan to further evaluate the Nanushuk potential of the Western
Blocks by using the valuable data obtained while drilling Winx-1,
as well as potentially reprocessing the existing 3D seismic
data
-- RMP remains well placed financially with a current cash
balance of approximately AUD $4.6 million, excluding its share of
the performance bond refund
-- The process for the refund of the performance bond (RMP share
USD $1.05 million) is underway
88 Energy (ASX/AIM: 88E), in its capacity as consortium
operator, has advised Red Emperor that Winx-1 has been successfully
plugged and abandoned with the rig and crew having fully
demobilised and no longer on site. We would like to thank 88E for
drilling the well on time and without incident in a very
challenging environment. Indications are that the well has come in
on or slightly under budget.
RMP would like to reiterate its forward plan to further evaluate
and integrate the valuable data acquired at Winx-1, as well as
potentially reprocess the Nanuq 3D seismic (2004), in order to
evaluate the remaining Nanushuk prospectivity on the Western
Leases. There are several working theories that will be assessed
over the coming months, including whether there is potential for
better developed sands updip and in closer proximity to the
successful Horseshoe-1/1A and Stony Hill-1 wells (Figure 1).
RMP is financially well placed to proceed with its evaluation
plans for the Western Blocks and continue its ongoing evaluation of
other opportunities, with a current cash balance of approximately
AUD $4.6 million (excluding the refund associated with the
performance bond). The process for the refund of the performance
bond (RMP share USD$1.05 million) has begun, now that all
obligations associated with it have been met.
http://www.rns-pdf.londonstockexchange.com/rns/9567T_1-2019-3-25.pdf
Figure 1 | Western Blocks, Alaska North Slope and Nanushuk
Fairway
For further information, please visit
www.redemperorresources.com or contact:
Red Emperor Resources NL +61 8 9212 0102
Greg Bandy
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494
James Harris
Brandon Hill Capital (UK Broker) +44 (0) 203 463 5010
708 Capital Pty Ltd (Australian Broker) +61 (0) 2 9112 2500
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Prospective Resources Reporting Notes
The Company announced the prospective resources estimate for the
Western Blocks in its announcement titled "Red Emperor to acquire
interest in large oil prospect in prolific Alaska North Slope" made
on 25 June 2018. The Company confirms that it is not aware of any
new information or data that materially affects the information
included in that announcement, and that all material assumptions
and technical parameters underpinning the estimates in that
announcement continue to apply and have not materially changed.
(i) The prospective resources information in this announcement
is effective as at 30 April 2018. (ii) The prospective resources
information in this announcement has been estimated and is
classified in accordance with SPE PRMS (Society of Petroleum
Engineers Petroleum Resources Management System). (iii) The
prospective resources information in this announcement is reported
according to the Company's economic interest in each of the
resources and net of royalties. (iv) The prospective resources
information in this announcement has been estimated and prepared
using the deterministic method. (v) The prospective resources
information in this announcement has been estimated using a 6:1 BOE
conversion ratio for gas to oil; 6:1 conversion ratio is based on
an energy equivalency conversion method and does not represent
value equivalency. (vi) The prospective resources information in
this announcement has been estimated on the basis that products are
sold on the spot market with delivery at the sales point on the
production facilities. (vii) Prospective resources are reported on
a best estimate basis. (viii) For prospective resources, the
estimated quantities of petroleum that may potentially be recovered
by the application of a future development project(s) relate to
undiscovered accumulations. These estimates have both an associated
risk of discovery and a risk of development. Further exploration,
appraisal and evaluation is required to determine the existence of
a significant quantity of potentially moveable hydrocarbons. (ix)
In respect to the prospective resources referred to in this
announcement, Red Emperor's working interest in the four leases
(ADL#s 391718, 391719, 319720 and 391721), totalling 22,711 acres
all of which are located on the North Slope, Alaska, USA will be
31.5% upon completion of the transaction. (x) The prospective
resources have been estimated on the following basis: the best
estimate prospective recoverable resource calculation was based on
a consideration of offset well information and seismic expression;
a combination of volumetric assessment and field analogues have
been used to estimate the prospective resources; exploration
drilling will be required to assess these resources. (xi) The
chance of discovery is considered moderate as the prospective
resources are near developed and undeveloped reserves and in a
proven oil and gas producing province. There is a risk that
exploration will not result in sufficient volumes of oil and/or gas
for a commercial development. (xii) Prospective resources are
un-risked and have not been adjusted for an associated chance of
discovery and a chance of development.
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 rns@lseg.com or visit www.rns.com.
END
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