swimming in the sea

Red Emperor is pleased to report that the Shabeel-1 well on the Dharoor Block

in Puntland, Somalia is currently at a depth of 2,384 meters. It is expected

that casing will be run at approximately 2400-2700m, as dictated by the next

electrical logging run. Target depth remains at approximately 3,800 meters.

Puntland - Offshore

As announced today by Red Emperor's JV partner, Range Resources Limited (ASX:

RRS | AIM: RRL) Range Resources has entered into a Memorandum of Understanding

("MOU") with the Puntland Government with respect to obtaining a 100% working

interest in the highly prospective Nugaal Basin Offshore Block. The Block is an

extension of the onshore Nugaal Region that has the potential for deltaic

deposits from the Nugaal Valley drainage system and comprises over 10,000km.

Range Resources intends to commit to a 2D seismic program within the first

three years, with further 3D seismic and an exploration well to follow in the

second three-year period. The MOU is subject to a formal PSA being entered into

and all necessary regulatory approvals. It is Range Resources' intention to offer Red Emperor a participation interest in the Block, on terms to be agreed. Red Emperor looks forward to updating the

market when more information comes to hand.