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 30 September 2019.
Alaska North Slope
During the quarter, the Joint Venture purchased additional regional 3D seismic data within the Western Blocks, with reprocessing and reinterpretation of the existing 3D seismic planned in order to assess further the prospectivity of the JV's acreage.
Along with regional petrophysical analysis, the operator hopes to report further to the JV during the coming month(s).
Philippines (Block SC55)
On 26 August 2019, the 4-month extension to the moratorium period granted by the Philippine's Department of Energy ("DoE") expired. The Joint Venture sought to enter into Sub-Phase 5 which required further, significant expenditure including the commitment to drill an exploration well in 2020.
The Board decided that this was not the optimum use of shareholder funds and as a result during the quarter the Company advised the operator, Palawan55, of its intention to withdraw from the JV and have its equity interest re-assigned. Red Emperor still awaits formal approval of this reassignment from the DoE and will advise shareholders once this has occurred.
Corporate
In August 2019 Mr Gracjan Lambert, Chief Executive Officer, resigned from the Company, by mutual agreement, in order to pursue other business interests. During the quarter Red Emperor retained the services of Mr John Begg on a part-time basis to assist with introducing and reviewing business opportunities. John is an expert, upstream oil and gas project generator and deal closer. With decades of experience in equity capital markets, John is an industry-leading geoscientist who has lived and worked with consistently high business impact in Australia, developing SE Asian countries, the UK, Mididle East and the USA.
Along with Mr Begg, Red Emperor has conducted high level due diligence on a number of projects around the world. The Company looks forward to updating its evaluation of such opportunities as they progress.
At the end of the quarter, the Company had cash at bank of approximately AUD5.3m. Refer to the Appendix 5B for further details which can be viewed at: http://www.rns-pdf.londonstockexchange.com/rns/0927R_1-2019-10-24.pdf