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 December 2019.
North Perth Basin, Western Australia
In early December 2019, the Company entered into a binding Letter of Intent ("LOI") with Pilot Energy Limited (ASX: PGY) ("Pilot Energy") and Key Petroleum Limited (ASX: KEY) ("Key Petroleum") (together, the Joint Venture ("JV") partners) in order to secure an option to acquire a 70% operated interest in the offshore Perth Basin exploration permit, WA-481-P.
Pursuant to the terms of the LOI, Red Emperor agreed to fund the completion of an existing committed work programme comprising geological and geophysical studies required to be undertaken within the final year of the current permit term, up to a capped amount of A$150,000. Contemporaneous with such work programme being completed, the existing JV partners, Pilot Energy - 60% interest and Key Petroleum - 40% interest, in conjunction with Red Emperor, will formally apply to the National Offshore Petroleum Titles Administrator (NOPTA) for a renewal of the permit, which currently expires on 19 February 2020.
On completion of the work programme, currently being managed and administered by Key Petroleum, and a favourable renewal decision from NOPTA, Red Emperor will have the 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 permit renewal application to exercise such option. A renewal decision is currently expected to be received in Q1 2020.
For further details, please refer to the Company's announcement of 2 December 2019.
Alaska North Slope
After purchasing additional regional 3D seismic data within the Western Blocks, the Joint Venture is still reviewing its plans to either reprocess / reinterpret the legacy 3D seismic data or seek to monetise the blocks.
Philippines (Block SC55)
Red Emperor still awaits formal approval of the reassignment of its equity interest in Block SC55 from the Philippine's Department of Energy and will advise shareholders once this has occurred.
Red Emperor continues to conduct high level due diligence on a number of potential 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 AUD5.1m. Refer to the Appendix 5B for further details[, which can be viewed at the following link http://www.rns-pdf.londonstockexchange.com/rns/4398A_1-2020-1-21.pdf