TIDMRMP
RNS Number : 9963R
Red Emperor Resources NL
06 March 2019
6 March 2019
Red Emperor Resources NL
ALASKA OPERATIONS UPDATE:
TOTAL DEPTH REACHED
The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("RMP",
"Red Emperor" or the "Company"), is pleased to provide an
operational update with respect to the drilling of the Winx-1
exploration well ("Winx-1"), located on the Western Blocks, North
Slope of Alaska.
Highlights
-- Total Depth of 6,800ft reached on 3 March 2019 and all
pre-drill targets successfully intersected
-- Multiple potential pay zones identified, including in the
primary target zone (Nanushuk topsets)
-- Wireline logging program is scheduled to commence imminently
to confirm prospectivity ahead of possible production testing
Red Emperor is pleased to announce that 88 Energy Limited
(ASX/AIM: 88E), in its capacity as consortium operator, has advised
that Winx-1 intersected all of the pre-drill targets safely and
efficiently. Total Depth of 6,800ft was reached on 3 March 2019,
with multiple potential pay zones identified in the Nanushuk
Formation Topset Play (primary targets) and Torok Formation
(secondary targets).
A comprehensive wireline logging program is due to commence on 6
March 2019 (AK time) to verify the prospectivity of the zones of
interest. This program, including first pass interpretation, is
expected to take approximately 10 days to complete. Based on the
results of the interpretation, a decision will then be made on
whether to proceed with production testing of the most prospective
zone within the Nanushuk Formation.
http://www.rns-pdf.londonstockexchange.com/rns/9963R_1-2019-3-6.pdf
Figure 1 | Winx-1 base case drilling and testing schedule
(Abbreviations: MDKB - Measured Depth (below Kelly Brushing), TD
- Target depth, CBL - Cement Bond Log, CSG - Casing, DST - Drill
stem test and P&A - plugged and abandoned)
The Winx prospect is a 3D seismic defined conventional oil
prospect in the successful Nanushuk play fairway with a gross mean
unrisked prospective resource of 400 million barrels ("MMbbls")
(126MMbbls net to Red Emperor) and is adjacent to the Horseshoe
1/1A discovery well drilled by the Armstrong/Repsol JV in 2017.
Refer to the Company's announcement of 25 June 2018 for further
details.
Cautionary Statement: The estimated quantities of petroleum that
may potentially be recovered by the application of a future
development project(s) relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of
development. Further exploration, appraisal and evaluation is
required to determine the existence of a significant quantity of
potentially moveable hydrocarbons.
http://www.rns-pdf.londonstockexchange.com/rns/9963R_2-2019-3-6.pdf
Figure 2 | Winx-1 exploration well, Western Blocks, Pikka B
well, Alaska North Slope and Nanushuk Fairway
The primary objective of Winx-1 is the Nanushuk Topset play,
targeting the Nanushuk 4 and 5 sands. As can be seen in Figure 3,
the Winx prospect has been identified using the Nanuq South 3D
which covers the third party 2017 Horseshoe discovery plus a large
swathe of the "Western Blocks". Similar amplitude response is
observed at the Winx prospect to that seen at the successful
Horseshoe well location, which is situated approximately 4 miles (6
kilometres) to the west.
http://www.rns-pdf.londonstockexchange.com/rns/9963R_3-2019-3-6.pdf
Figure 3 | Winx-1 targeting multiple stacked prospects with
strong amplitude support
Competant Person's Statement:
The technical information in this announcement was compiled by
technical employees of 88 Energy Limited, the consortium operator,
and subsequently reviewed by Mr Gracjan Lambert BSc (First Class
Honours) (Geophysics), PhD (Exploration Geophysics), who has
consented to the inclusion of such information in this announcement
in the form and context in which it appears. Mr Gracjan Lambert is
an employee and Chief Executive Officer of RMP and member of the
Petroleum Club of Western Australia and the Association of
International Petroleum Negotiators (AIPN) and therefore a
qualified person under the AIM Guidance Note for Mining and Oil
& Gas Companies.
For further information, please visit
www.redemperorresources.com or contact:
Red Emperor Resources NL +61 8 9212 0102
Greg Bandy
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494
James Harris
Brandon Hill Capital (UK Broker) +44 (0) 203 463 5010
708 Capital Pty Ltd (Australian Broker) +61 (0) 2 9112 2500
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
About Red Emperor Resources NL
Red Emperor Resources NL is an Australian natural resource
exploration company listed on both the Australian Securities
Exchange (ASX: RMP) and the AIM Market (AIM: RMP). Red Emperor has
oil and gas interests on the Alaska North Slope and in South East
Asia.
Alaska
Red Emperor has entered into Definitive Agreements with its
consortium partners 88 Energy Limited and Otto Energy Limited that
will see the Company participate in the drilling of a highly
prospective Nanushuk oil trend exploration well on the Alaska North
Slope in early 2019. The drill target is immediately adjacent to
and a direct analogue of the third party Horseshoe-1/1A oil well
drilled in 2017. Horseshoe is part of the billion-barrel plus
Nanushuk oil play-fairway, one of the largest conventional oil
fields discovered in the US in more than 30 years.
Technical work on the Western Blocks has identified a gross best
estimate prospective resource volume of 400 MMbbls (126 MMbbls net
to RMP), and a geological chance of success of 25%-35%. The
estimated quantities of petroleum that may potentially be recovered
by the application of a future development project(s) relate to
undiscovered accumulations. These estimates have both an associated
risk of discovery and a risk of development. Further exploration,
appraisal and evaluation is required to determine the existence of
a significant quantity of potentially moveable hydrocarbons.
Philippines
Red Emperor also holds an equity interest of 37.5% of Block
SC55, which is located in the southwest Palawan Basin. SC55 covers
an area of 9,880km(2) and was awarded to Otto Energy Investments
Ltd (formerly NorAsian Energy Ltd) in 2005. It is a deep-water
block in the middle of a proven regional oil and gas fairway that
extends from the productive offshore Borneo region in the southwest
to the offshore Philippine production assets northwest of
Palawan.
Red Emperor participated in a USD25m exploration well
(Hawkeye-1) within the block in 2015 and contributed in excess of
AUD5m towards drilling costs. Over USD50m has been spent exploring
SC55 to date and a number of drill-ready targets remain, including
the "Cinco" gas prospect which has a best estimate prospective
resource of 1.6 trillion cubic feet ("tcf") recoverable gas.
Prospective Resources Reporting Notes
The Company announced the prospective resources estimate for the
Western Blocks in its announcement titled "Red Emperor to acquire
interest in large oil prospect in prolific Alaska North Slope" made
on 25 June 2018. The Company confirms that it is not aware of any
new information or data that materially affects the information
included in that announcement, and that all material assumptions
and technical parameters underpinning the estimates in that
announcement continue to apply and have not materially changed.
(i) The prospective resources information in this announcement
is effective as at 30 April 2018. (ii) The prospective resources
information in this announcement has been estimated and is
classified in accordance with SPE PRMS (Society of Petroleum
Engineers Petroleum Resources Management System). (iii) The
prospective resources information in this announcement is reported
according to the Company's economic interest in each of the
resources and net of royalties. (iv) The prospective resources
information in this announcement has been estimated and prepared
using the deterministic method. (v) The prospective resources
information in this announcement has been estimated using a 6:1 BOE
conversion ratio for gas to oil; 6:1 conversion ratio is based on
an energy equivalency conversion method and does not represent
value equivalency. (vi) The prospective resources information in
this announcement has been estimated on the basis that products are
sold on the spot market with delivery at the sales point on the
production facilities. (vii) Prospective resources are reported on
a best estimate basis. (viii) For prospective resources, the
estimated quantities of petroleum that may potentially be recovered
by the application of a future development project(s) relate to
undiscovered accumulations. These estimates have both an associated
risk of discovery and a risk of development. Further exploration,
appraisal and evaluation is required to determine the existence of
a significant quantity of potentially moveable hydrocarbons. (ix)
In respect to the prospective resources referred to in this
announcement, Red Emperor's working interest in the four leases
(ADL#s 391718, 391719, 319720 and 391721), totalling 22,711 acres
all of which are located on the North Slope, Alaska, USA will be
31.5% upon completion of the transaction. (x) The prospective
resources have been estimated on the following basis: the best
estimate prospective recoverable resource calculation was based on
a consideration of offset well information and seismic expression;
a combination of volumetric assessment and field analogues have
been used to estimate the prospective resources; exploration
drilling will be required to assess these resources. (xi) The
chance of discovery is considered moderate as the prospective
resources are near developed and undeveloped reserves and in a
proven oil and gas producing province. There is a risk that
exploration will not result in sufficient volumes of oil and/or gas
for a commercial development. (xii) Prospective
resources are un-risked and have not been adjusted for an
associated chance of discovery and a chance of development.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCGLGDXXSGBGCL
(END) Dow Jones Newswires
March 06, 2019 02:02 ET (07:02 GMT)
Red Emperor Resources Nl (LSE:RMP)
Historical Stock Chart
From Apr 2024 to May 2024
Red Emperor Resources Nl (LSE:RMP)
Historical Stock Chart
From May 2023 to May 2024