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 31 December 2012.
During the quarter Red Emperor’s JV partner and operator of its Puntland Project, Horn Petroleum Corp (TSXV: HRN), demobilized the drilling rig and associated equipment and completed restoration of both drilling locations.
Efforts are now 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.
Based on the encouragement provided by these two Shabeel wells, the Operator (Horn Petroleum Corporation) and its partners, Range Resources and Red Emperor, have 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 would be 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.
Now the Joint Venture has formally entered into next phase of the Dharoor and Nugaal Valley Production Sharing Agreements (“PSAs”), it is important to note that Red Emperor has earned its 20% interest in the two projects and remains fully funded for the current program.
Source: Red Emperor Resources NL
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