Red Emperor Resources (RMP) is an ASX and AIM listed 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 first well in a two well
programme spudded with drilling also commenced on the second well in
January 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 the drilling of a 50
meter pilot hole in readiness for spudding following the 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 oilinplace (on a mean 100% basis) with the first (Mukhiani-1)
of two exploration wells having spudded in July in 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.



As at 8th March 2012, the Company has 206,681,755 ordinary
shares in issue. The Company holds no shares in treasury and each share carries
one vote. This figure may be used by shareholders in the Company as the
denominator for calculations by which they will determine if they are required
to notify their interest in, or a change to their interest, under the
Disclosure and Transparency Rules.

From today's Uk Analyst Stock Market report:

"There was more positive news from the oil sector as Red Emperor Resources (RMP) reported it had made significant progress across its portfolio of oil development assets in the six months to December 2011. Work commenced on the Mukhiani 1 well in Georgia, while preparations were made to begin work at the Shabeel North-1 well at Puntland, Somalia, which is now underway. The company continues to be well funded following the raising of 6.9 million pounds in February. The exploration company's shares added 3.525p to close at 42.9p."

You might be right dreamcatcher...difficult to guess...the good thing is that this is isable so if necessary I can jump back in but right now this coming week could be pullback time....whenever EK is shorting you take notice....he does not get everything right but the short will be hefty and he has influence.....I'm staying put with RRL.....it's just this has shot up so much lately.....well funded with 6.9 million...market 100 million already....much priced in ?...

Don't want to sound too negative, but I have been doing some calculations ; recoverable oil supposedly of 300 million barrels...20 % of that is 60 million....that's perhaps if both wells are successful...(long way from that... yet).....no infrastructure of any kind for recovery yet....which means probably having to bring in a big boy major....perhaps....$10 profit perhaps on each barrel...by the time a major has taken his cut and in these cases in a risky country you are probably looking at a 50% discount or farmin, perhaps as much as 60/40%...whatever....we are now down to 30 million.....perhaps if and this is a very big if : I reckon that they might have in value : 200 million pounds worth to them in the ground and that's in the event of a huge success,....now the market cap I guess is way in excess of a 100 million..perhaps 120 already...not sure about the georgian assets....a tad overvalued at the present moment with so much at stake ? because a hit or double hit is looking to be factored in.......now Range Resources is a different matter altogether.....views welcome...

THE two licenses dharoor and Nugal could contain 19.9 billion barrels of oil. Range has said they are only out to prove the areas up, then sell on to the majors. So perhaps another divi ? There is pipe works and tanks in place.

from ii

The Figures – from HORN Website – E&OEE…….


http://www.hornpetroleum.com/s/Dharoor_Nugaal_Block.asp?ReportID=499459&_Type=Dharoor-and-Nuggal-Blocks&_Title=Block-Summaries


The NET Best Estimate and Values for the THREE Puntland Onshore Partners given by Horn Petroleum are :-…….

Block…….Partners………………....Gross Area….Gross Best Estimate …Net Best Estimate
……………………………………………[sq.km.]…………[MMBbls]……………..[MMBbls]
Dharoor…………………………............14,384…………..1,210…………………………………..

…………... Horn (Operator) 60%..............................................……………………..726
…………... Range Resources 20%.............................................…………………...242
…………... Red Emperor 20%....................................................…………………...242
……………………………………………………….....Gross Best Estimate Total...1,210

Nugaal……………………………...........21,784…………..4,083………………………………….
…………... Horn (Operator) 60%.......................................................................2,450
…………... Range Resources 20%..........................................…………………...816.6
…………... Red Emperor 20%.................................................…………………….816.6
…………………………………………………….......Gross Best Estimate Total...4,083

Net Asset Value - to Each of the Partners @ $3/bbl

Dharoor

Horn (Operator) 60%..........726,000,000 x $3 = $ 2,178,000,000 / 120* = $ 18.15 per share
Range Resources 20%.......242,000,000 x $3 = $ 726,000,000 / 2,122^ = $ 0.34 per share
Red Emperor 20%...............242,000,000 x $3 = $ 726,000,000 / 205** = $ 3.54 per share

Nugaal

Horn (Operator) 60%........2,450,000,000 x $3 = $7,350,000,000 / 120* = $ 61.25 per share
Range Resources 20%........816,600,000 x $3 = $2,450,000,000 / 2,122 ^ = $ 1.15 per share
Red Emperor 20%................816,600,000 x $3 = $2,450,000,000 / 228** = $ 10.74 per share

For Shares in Issue at the time of the Dharoor and Nugaal Explorations –
[I would expect these to be Higher by the 2013/14 exploration season]

* for Horn - shares in issue raised from 75 Million to 120 Million by the “compulsory” excercise of 45 Million Warrants at an excercise price of $1.50 - by August 2013 - to provide an additional $ 67.5 Million in working capital for the development and Drilling of the Puntland Blocks.


http://www.hornpetroleum.com/s/Share_Structure.asp *

** for RMP – Shares in Issue following the current 2 x Tranches - announced this week.
^for Range – I have used Current Shares in Issue – to be kind - although I would expect RRL Shares in Issue to be Much Higher by 2013/14 – unless there is some sale or buy back.

Values per share for ........................Dharoor + Nugaal combined

Horn (Operator) 60%.......$ 18.15 per share + $ 61.25 per share = $ 79.40 = £49.79

Range Resources 20%.....$ 0.34 per share + $ 1.15 per share = $ 1.49 = £ 0.93p

Red Emperor 20%............$ 3.54 per share + $10.74 per share = $ 14.28 = £ 8.95

Conversion Factor $ : £ = 1.5947

Put RMP / RRL / HRN in an ISA – they are ALL ISAable !!..….

DYOR......

Remember Nugaal if a success has best estimate of 816 million barrels to RMP, over 3x
Dharoor. These could be on the light side as well.





Block…….Partners………………....Gross Area….Gross Best Estimate …Net Best Estimate
……………………………………………[sq.km.]…………[MMBbls]……………..[MMBbls]
Dharoor…………………………............14,384…………..1,210…………………………………..

…………... Horn (Operator) 60%..............................................……………………..726
…………... Range Resources 20%.............................................…………………...242
…………... Red Emperor 20%....................................................…………………...242
……………………………………………………….....Gross Best Estimate Total...1,210

Nugaal……………………………...........21,784…………..4,083………………………………….
…………... Horn (Operator) 60%.......................................................................2,450
…………... Range Resources 20%..........................................…………………...816.6
…………... Red Emperor 20%.................................................…………………….816.6
…………………………………………………….......Gross Best Estimate Total...4,083

I fear that your figures are utter nonsense.....and since when has Horn been isable....it's the epic code for Hornby ?...

The estimate of oil in the ground comes from the horn website, so far from utter nonsense. Its any ones guess where the sp will end at ? You ask a 100 investors and you will get a 100 different figures. Again my view only if we hit in all locations and this is sold, Im expecting £s. Sorryn if horn is not isable ( I do not have horn shares)
over looked this. If all goes to plan RMP = 1 billion barrels

LEAKS, — March 16, 2012 20:56 — 0 Comments

Major Puntland Oil Updates Around the Corner

The buzz of Puntland oil has gone from the cafes of Puntland’s towns and cities to the hotel lobbies and public meeting squares of Nairobi and other global cities where Somalis are prominent.


Updates were the topic of discussion. Somalis worldwide have been glued to the global market as Dharoor Valley exploration companies Red Emperor Resources, Range Resources, Horn Petroleum, and Africa Oil took the headlines in financial news, and communities both at home and abroad are awaiting news at any moment.

This is the first time that the Somali community has taken to the financial, foreign angle of oil exploration in their country, looking at how the global marketplace is reacting to their nation’s potential treasures.

Speaking to friends and family in Nairobi, we’ve been told that an imminent update, perhaps more than one on the same subject, is expected very soon, and that the anticipated report is to be nothing less than spectacular.

Aside from local opinions and expectations, the massive buying frenzy and stock mobility shown by the exploration firms in Puntland is expected to trigger releases.

Hirsi Fiqi, Editor

DissidentNation.com

http://dissidentnation.com/major-puntland-oil-updates-around-the-corner/

•IG Index clients are 100% long on RRL, and 98% long on RMP as of today.




http://www.spandy.org/2012/03/17/rmp-rrl-progressing-rather-well/

Thanks for that link. Have copied the whole item:

From Spandy.Org

RMP & RRL – Progressing Rather Well
Hi all,

Well it’s been a good couple of weeks, hasn’t it?! When I last posted an update on RMP, it was shortly after they released news of oil shows below 1600m, but above the main targets. RMP Version here, RRL Version here.

Points for discussion today:

Firstly, I’ve updated Spandy’s Portfolio tracker, and I’ve added a chart of all the stocks blogged on here, and their changes in 2012. Click Here
I’ve also made the charts in various posts better to look at, and use (e.g. RMP 3 scenario post)
RMP & RRL’s Share Price Movements Recently
RMP’s Share Price movement compared to previously expected Scenarios
Interesting Points from Half Year financial reports
What next for these two?
RMP & RRL’s Share Price Movements Recently

Since then, the share price has been moving quite firmly upwards for RMP, and in recent days RRL has started to move up too. There has been a lot of talk between the Bulletin Boards recently around why RMP’s Share Price has been going up so much more than RRL’s. interestingly, if you look at this chart, from Google of the last 5 days, you’ll see that RMP and RRL have really been mimicking each other quite well. RMP has been steadily higher than RRL in percentage increase terms, but that makes perfect sense given that RMP’s Market Cap, even today is only circa £80m, while RRL’s is more like £300m, so a 10% rise for £30m extra Market cap for RRL, but only £8m for RMP.

Some very noteworthy points:

Both RMP and RRL Volumes traded have increased significantly since 5th March, and remain high.

For RMP: A total of nearly 217 million shares have been traded since Monday 5th March, that’s over 100%of the entire company’s shares in issue in 10 days. This sort of volume, has led to a solid rise from 25.5p (Open price on Monday 5th March) to 43.75p (close price on Friday 16th March)… That’s a 71.5% increase in 2 weeks… Normally I would be a bit worried by this on the basis of what is rather flakey news. But this move really does have the volume to back it up. More than 100% of the shares in issue have been traded throughout this rise. I expect given the volatility that a good chunk of this has been day-traded but it’s still significant to note this many shares have changed hands, so the price is underwritten quite well. This is an increase in Market Cap of ~£37m

For RRL: A total of 407m traded since 5th March. That’s around 20% of RRL’s Shares in Issue. This has resulted in a rise of 15% in the Share Price. Again, good solid volume, behind a good solid rise. This is an increase in Market cap of ~£42m.

The percentage traded for both companies backs up the rise in my opinion. It’s interesting to note that the Market Capitals have increase by broadly similar amounts.

IG Index clients are 100% long on RRL, and 98% long on RMP as of today.


RMP’s Share Price movement compared to previously expected ScenariosThe below chart illustrates how Red Emperor has moved versus the Scenarios depicted in a previous RMP post of mine (found here)



I’m pleased to report that to-date, RMP is outperforming these scenarios. Largely because when the scenarios were written, there was no expectation of an interim RNS stating Hydrocarbons had been encountered!

Interesting Points from Half Year financial reportsBoth companies today released their half year results for the 6 months to 31st December. RMP here, RRL here.

Nothing of real interest in RMP’s half year report, but that was to be expected. No new operational news included. Costs are going up compared with 2010, but that’s also to be expected as operations started in that 6 months. Nearly £5m cash remaining at the end of the year, and this year’s placement will have added to that (after further expenses from Q1 / Puntland activities). All-in-all, should be in a good position.

RRL’s half year report shows clearly that their revenue stream is ramping up rather nicely, with nearly £13m received in H2 2011, compared with only £1m the year before. Work is clearly ramping up quite heavily in Trinidad, with RRL stating they’ve increased head count by 70 on Trinidad operations, clearly turning into quite the 24hr operation now. Understandably. They also re-iterate the valuation given to Trinidad and Texas, which assigns an NPV (10% discount) of $450m to T&T’s P1 reserves, with a further risked valuation of circa £250m for the P2 and P3 probable and possible reserves. In itself, this P1 valuation covers today’s Market Cap (£300m). There’s a nice reminder of the $2m investment in Tangiers Petroleum, RRL made. I have yet to evaluate that properly.

What next for these two?

RMP and RRL

Complete Puntland Shabeel-1, TD should be within weeks, subsequent completion by mid April if everything goes to plan
Were at 2053m on 7th March. Should be in Primary Cretacious target by now… Then onwards through Jurassic to Total Depth of 3800m. Hopefully all loaded with oil!
On to Shabeel North-1, 90 day drill programme, complete in Q2 hopefully
Georgia Kursebi to spud in Mid April


RRL (In addition to the above)

Trinidad, further drilling, increased production
Trinidad, deeper operations post 3D seismic, Q3 2012
Texas, Prove up reserves and increase production
Offshore Puntland? (speculation only)


Bring on the Puntland Results!


The Small PrintPlease note that I am not a financial adviser or even employed in the financial sector and am not providing financial advice. The contents of this blog are from my own research of publicly available data, and any opinions expressed are my own. I trust that you enjoy reading them but you must do your own research or obtain financial advice before making any investment. Naturally, I do everything I can to ensure that the information posted by me is entirely accurate, however, any information provided is subject to the possibility of error, both in fact and interpretation, on my part and for that I can not be held accountable.

Thats fine g

http://dissidentnation.com/pathfinders-corporation-enters-puntland/

THE INDEPENDENT-BP and Shell fight over African oil find,MARK LEFTLY SUNDAY 18 MARCH 2012
http://www.precogz.com/home/

I wish you lot would not ramp like this......what was it before ?...19 billion barrels ?....to my reckoning quite a bit of two strikes never mind one is already in the price.....perhaps they might hit a large accumulation but plenty of work remains to be done.....anyway we shall see.....I want them (HRN,RRL and RMP) to succeed but I can't do with ridiculous overestimates....I'm overweight with RRL as it is and their sp should be a lot higher....

SATURDAYS OIL & GAS WRAP-17/03/2012,Gulf Keystone Petroleum,Range Resources
http://www.precogz.com/news/page/4/

rf you are not alone in being fed up with wild overestimates from "rampant rampers" who regurgitate old news, like noc on the GKP thread. Some of these bloggers are obviously journos trying to create a story or are ramping shares they have written about which is of course illegal, remember the Daily Mirror case a few years ago.

rf, Far from ramping . I do not think the price is priced in the two wells. We will see. If you jumped ship to early not my problem.My view anyone
shorting this next week with the news next week will be brown toast. Rf you asked for investors views, whats it not the news you want to hear? 19 billion barrels is not some figure I have made up in my head. Halifax - You seem to read all the news. I am sorry this share is doing fantastic. :-))

Ps halifax if there was any bad news I would soon put it on here. I do not think you can accuse me of ramping, sorry. I sit in the middle, if i am not happy with the share you will soon hear. As far as I can see the news is all good to today, so sorry nothing to say other than good news. Call it ramping, whats everyone to do shut up because a share is doing well ?

One thing I am not over the moon about is Georgia. Seems a very difficult area to drill,
with many pas there.