Future Metals NL

Earnings Release • Apr 30, 2014

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RED EMPEROR RESOURCES NL - Quarterly Report

PR Newswire

London, April 30

                                                              30 April 2014                           Red Emperor Resources NL             Quarterly Report for the Period Ending 31 March 2014Issued Capital: 266M \*ASX Code: RMP Closing price: A$0.055\*AIM Code: RMP Closing Price: £0.0278\*\* as at 31 March 2014The Board of Red Emperor Resources NL (Red Emperor or the Company) is pleasedto provide the following commentary and Appendix 5B for the period ending 31March 2014.Georgia ProjectDuring the quarter, the Operator, Strait Oil & Gas UK (Strait) continued toadvance discussions with potential farm-in partners and buy out parties inorder to advance its exploration and development programmes in Georgia or,alternatively, create value for its shareholders via a partial or fulldivestment of the licences.In the event that a farm-in partner is secured, agreement has been reached withthe State Agency for a well to be drilled in Block VI(b) during the second halfof 2014 and the PSA amended accordingly.The Operator's discussions with potential farm-in partners and purchasers haveadvanced significantly during the March quarter, with Strait advising that anoutcome to these discussions is likely to occur in the June quarter.Puntland ProjectDuring the quarter Red Emperor's joint venture partner and operator, HornPetroleum Corporation (TSXV: HRN) re-commenced some preliminary groundwork inPuntland. This preliminary work included field research and reconnaissanceacross both sites as well as a review of the operating environment. The resultsof which are encouraging in terms of local grass-roots support for operationsand the ability to get work done. At the same time it gave the operator achance to meet the new President. Mark Dingley the COO of Horn Petroleum said;"The transition of President Abdiwelli's government has been smooth and as suchmeetings with him have been positive. The leadership of the PPMA has remainedunchanged allowing for continuity in the management of the PSA's."The political situation still remains complex, however, characterised at thehighest level by continued discussion regarding the application of the Somalifederal system. The issue of the contested territory of Nugaal continues to bea significant challenge for Somaliland and Puntland and has a direct impact onthe joint venture's ability to access the Nugaal Block. Efforts are focused onmaking preparations for a seismic acquisition campaign in the Dharoor Valleyarea which will include a regional seismic reconnaissance grid in thepreviously unexplored eastern portion of the basin as well as prospect specificseismic to delineate a drilling candidate in the western portion of the basinwhere an active petroleum system was confirmed by the drilling of the Shabeel-1and Shabeel North-1 wells.For and on behalf of the BoardGreg BandyExecutive DirectorAppendix 5B Summary - Consolidated Statement of Cashflow                                                       Current  Year to Date                                                       Quarter                                                                 (12 months)                                                        $A'000                                                                     $A'000)Cash flows related to operating activitiesReceipts from product sales and related debtors              -             -Payments for:  \* exploration and evaluation                           (228)         (787)  \* development                                              -             -  \* production                                               -             -  \* administration                                       (186)         (771)Dividends received                                           -             -Interest and other items or a similar nature               109           325receivedInterest and other costs of finance paid                     -             -Income taxes paid                                            -             -Other Receipts                                               -            48Net operating Cash Flows                                 (305)       (1,185)Cashflows related to investing activitiesPayments for the purchase of:  \* prospects                                                -             -  \* equity investments                                       -             -  \* investments                                              -             -Proceeds from the sale of:  \* prospects                                                -             -  \* equity investments                                       -             -  \* investments asset acquisition escrow acc                 -             -Loans to other entities                                      -             -Loans repaid by other entities                               -             -Proceeds from underwriting                                   -             -Net investing cash flows                                     -             -Cash flows related to financing activitiesProceeds from raisings                                       -             -Proceeds from sale of forfeited shares                       -             -Proceeds from borrowings                                     -             -Repayment of borrowings                                      -             -Dividends paid                                               -             -Costs associated with issue of shares                        -             -Net financing cash flows                                     -             -Net increase / (decrease) in cash held                   (305)       (1,185)Cash at the beginning of the quarter / year to          11,097        11,977dateExchange rate adjustments                                    -             -CASH AT THE END OF THE QUARTER                          10,792        10,792For further information please visit www.redemperorresources.com or contact:Red EmperorGreg Bandy +61 8 9225 2826Rebecca Sandford +44 20 7025 7040Fox-Davies Capital Limited (Nominated Adviser and Broker)Jonathan Evans/Daniel Fox-Davies +44 20 3463 5000BackgroundBackgroundRed Emperor Resources NL (ASX: RMP | AIM: RMP) is a natural resourcesexploration company with interests in the frontier state of Puntland, Somaliaand the Republic of Georgia.In Puntland, Red Emperor holds a 20% working interest in two licencesencompassing the highly prospective Dharoor and Nugaal valleys. These twoexploration areas cover over 36,000km2. Horn Petroleum, the operator and 60%interest holder, has completed a two well program with the JV having nowentered the next phase of the two Production Sharing Contracts across bothblocks.In the Republic of Georgia, Red Emperor has a 20% working interest in onshoreblocks VIa and VIb, covering approximately 6,500km2. After the drilling of thefirst conventional well in July 2011 (Mukhiani-1) the JV began evaluating thelarge unconventional CBM potential of the area, as it is seen to be relativelylow risk and has the potential to contribute cash flow to fund furtherexploration if successful. A strategic review has also been commissioned toidentify potential drilling locations in Block VIb that were highlighted asprospective from the initial survey in 2009 as well as allowing the JointVenture to update the reserve and resource potential across the two licenseareas.