Red Emperor Resources NL (ASX: RMP | AIM: RMP) ("Red Emperor" or "the Company") would like to announce the following updates with respect to its Georgian operations.
The Company is pleased to announce that site construction has commenced in readiness for the spudding of the Company's second exploration well in Georgia - the Namakhvani well which is the Kursebi 6 Prospect. Targeted spudding date is early to mid February 2012 with a target depth of circa 3,500m.
Given the unexpected geological sequences encountered with the first well, Red Emperor's joint venture partner, Range Resources Limited (ASX: RRS | AIM: RRL) has engaged new independent technical consultants, NTD Energy, to perform a fresh review of all of the seismic and geological data across the top 3 Kursebi prospects previously identified. The Kursebi 6 prospect was identified as the most robust prospect with a more clearly defined structure and indications of a significantly thicker Jurassic section, increasing chances of encountering more reservoir and mature source rocks.
Below are the estimates of undiscovered stock tank oil initially in place (STOIIP) for the prospect.
STOIIP (Mmbbls)
P90 P50 P10 Mean
K-6 Prospect - 100% 32.2 84.8 185.8 99.2
Attributable to Red Emperor - 20% 6.44 16.96 37.16 19.84
NTD Energy will assist in the management of the Company's drilling program for the Namakhvani well along with the supervision of the proposed 2D seismic program on block VIb. NTD Energy will also assist the Company promoting and developing the unconventional (shale) plays that may exist across the two licence areas through the introduction of farm-in partners.
The Company will provide regular updates as to the progress of the drilling of the second exploration well.
RRS Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
