AIM aim resources limited

market update on aim

  1. RDL
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    AIM up 13.4% with 13m traded.... and this;

    18 April 2012

    Red Emperor Resources NL

    ("Red Emperor" or "the Company")

    Market Update

    Red Emperor Resources NL (ASX | AIM : RMP) is aware of negative statements and
    commentary being circulated in respect of progress with the Shabeel-1 well
    currently being drilled in Puntland by a joint venture between the Company,
    Horn Petroleum Corp (the operator of the well) and Range Resources Ltd (ASX:
    RRS | AIM: RRL). The Company wishes to confirm that the well has not yet
    reached depths targeting primary reservoir and refers investors to the drilling
    update released to the market on 12 April 2012.

    The forward plan on the well (currently at 2,953 metres) is to drill ahead to
    the originally planned depth of 3800 metres to evaluate the primary and
    secondary reservoir targets (which to date have not been reached) in the Lower
    Cretaceous and Jurassic intervals equivalent to the main productive section
    seen in the analogous fields in Yemen. A testing program including the zones of
    interest seen to date and any deeper potential pay zones identified will be
    agreed with partners at that time. Upon completion of this well, the Joint
    Venture plans to move the rig to the Shabeel North location on which
    construction is nearing completion.

    The Company will provide a more detailed update on the progress of drilling in
    Puntland in conjunction with its Joint Venture partners as the well progresses.

    For further information please visit www.redemperorresources.com or contact:

    Red Emperor

    Greg Bandy +61 8 9225 2826

    Rebecca Sandford +44 20 7025 7040

    Cairn Financial Advisers LLP (Nominated Adviser)

    Jo Turner +44 20 7148 7900

    Tony Rawlinson

    Old Park Lane Capital plc (Broker)

    Luca Tenuta +44 20 7493 8188

    Michael Parnes

    Tavistock Communications

    Paul Youens +44 20 7920 3150

    Ed Portman

    Background

    Red Emperor Resources NL (ASX: RMP | AIM: RMP) is a natural resources
    exploration company with interests in the frontier state of Puntland, Somalia
    and the Republic of Georgia.

    * In Puntland, Red Emperor holds a 20% working interest in two licences
    encompassing the highly prospective Dharoor and Nugaal valleys. These two
    exploration areas cover over 36,000km2. The operator and 60% interest
    holder, Horn Petroleum Corp. (TSXV: HRN) has spud the first well in a two
    well programme in early 2012 targeting 300mmbls and 375mmbbls of best
    estimate Prospective Resources (100% basis). Site construction has
    commenced on the second well with the setting of the 30 inch surface casing
    and drilling of a 50 meter pilot hole in readiness for spudding following
    completion of the first well.

    * In the Republic of Georgia, Red Emperor has a 20% working interest in
    onshore blocks VIa and VIb, covering approx. 6,500km2. Joint Venture
    partner Range Resources Limited (ASX: RRS | AIM: RRL) previously funded a
    410km 2D seismic program with independent consultants RPS Energy
    identifying 68 potential structures containing an estimated 2.045 billion
    barrels of undiscovered oil–in–place (on a mean 100% basis) with the first
    (Mukhiani-1) of two exploration wells having spudded in July 2011.
    Re-interpreted seismic supported by the Mukhiani-1 vertical seismic
    profiling has identified new fault and stratigraphic trapping potential
    with the possibility of a side track well to be drilled post additional
    seismic in 2H 2012.
 
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