rumours confirmed officialy i- 7 march -

No wonder price was rocketing upwards...HOLD ONTO YOUR HATS!!!!
as per posting in LSE.. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11140065

Company Red Emperor Resources NL
TIDM RMP
Headline Puntland Drilling Update
Released 13:57 07-Mar-2012
Number 21356-715A



7 March 2012

Red Emperor Resources NL

("Red Emperor" or "the Company")

Drilling Update, Puntland

Red Emperor Resources NL (ASX: RMP | AIM: RMP) is pleased to announce that the
Shabeel-1 well continues drilling ahead on the Dharoor Block in Puntland,
Somalia and is currently at a depth of 2002 meters. The upper 1600 meters of
section drilled to date includes a thick section of Tertiary limestones and
shales that appear to be a regional seal as no oil or gas shows were
encountered above this depth. The well is currently drilling a 400 meter
section composed of interbedded sandstones and shales believed to be Upper
Cretaceous in age. Most of the sandstone intervals in this section have
exhibited oil and gas shows confirming the existence of a working petroleum
system. Determination of the quality of the reservoir and prospectivity of any
potential oil bearing intervals cannot be determined until downhole electric
logs and formation tests are concluded.

The well has a planned total depth of 3800 meters and has yet to penetrate the
main reservoir targets in the Lower Cretaceous and Jurassic. It is expected
that the next electrical logging run will be coincident with the running of the
9 5/8" casing at approximately 2400 - 2700 meters. Operations continue to run
smoothly with no reported security or operational incidents.

David Grellman, President and CEO of JV partner and well operator, Horn
Petroleum, commented; "While we are encouraged by the hydrocarbon shows in the
well, there is still a great deal of information which must be collected before
we are able to properly evaluate the results to date. We look forward to
reaching the main objectives and appreciate the continued support of the
Puntland Government and the local residents."

The Shabeel well is targeting a large faulted anticlinal prospect and is
located on a Jurassic aged rift system which is part of the same system that
has proven to be highly productive in the Masila and Shabwa Basins in Yemen
that contain an estimated 6 billion barrels of oil*. It is a large faulted
anticlinal prospect with internal most likely estimates of potential oil volume
of over 300 million barrels of recoverable oil. Source rocks are expected to be
rich Jurassic Kimmeridgian shales in the deep portion of the rift immediately
down dip from the Shabeel prospect. Reservoirs are expected to be sandstones
and carbonates of the Cretaceous and Jurassic systems analogous to Yemen.

Red Emperor Managing Director commented; "We are delighted with how the
drilling has progressed so far, from both a geological and operational point of
view. We wish to thank the Puntland Government for their continued support and
look forward to updating the market further in due course."

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