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Red Emperor Resources NL (LSE:RMP) (ASX:RMP) requested to halt trading of its shares on the Alternative Investment Market today, prior to the release of the latest update of the exploration activities from its Shabeel North well in Puntland, Somalia.
The move, nonetheless, did not shake rumours of an impending doom amongst investors but rather sparked talks of yet another disappointment of the results of its drilling operation.Earlier today, the dually-listed exploration company also moved to suspend trading on the Australian Stock Exchange for the same reason.
But before the exchange could impose the suspension, some 20 minutes right from the start of trading have given the market a window of opportunity to dispose over 3.3 million shares resulting in a loss of 8.7% of Red Emperor’s market value, now at 7.925 pence.
Partner to the JV, Range Resources Limited (LSE:RRL) (ASX:RRL), which decided not to suspend trading of its shares on AIM, saw its share price moved up 0.6% to 5 pence by 13:35 after falling 3.4% to 4.80 pence earlier.
Opposing Views
Rounding up talks in discussion boards and forums gave opposing views as to why Red Emperor chose to suspend trading on both exchanges before the update is released. On one side, some were saying it may probably because the results are so bad the partners to the JV are still trying to come up with a fine-tuned literature to sooth the hurting announcement.
But others tend to believe it may be something big, as the firm did not have to suspend trading back then when news was disappointing. On 23rd July 2012, Red Emperor nearly halved its share price after a drill stem test (DST) over a 50-metre interval recovered fresh water without any trace of oil.
Rumours of RMP backing out of the exploration or cutting its interest the said licence, and other scenarios as to the fate of the drilling campaign, which is based on the assumption that the acreage lies in the same basin analogous to the oil fields in Yemen, across the Gulf of Aden.
All eyes now turn to the operator Horn Petroleum Corporation, which trades on the Toronto Stock Exchange at 2:30 PM GMT (9:30 EST), to release the findings, unless it too decides to forego announcement today.
