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.

Halifax: Maybe!

retrace ready for the next jump.

This one has been more fun than dear old GKP of late. The latter seems to have unsettled a few people since its dramatic fall. I was always told to get onboard those that were on the UP and sell those that have fallen off a cliff

The share is up 100% in a month and a lot more from its low of 11p. Not doing to bad, a retrace then onwards with some more news.

Down 6.3% on the ASX

Profit takers showed up to the recent Red Emperor (LON:RMP) rally, pushing the shares 8% easier to 42p on decent volume. Red Emperor have been on a cracking run of late, pushing from a low of 19p to the recent high of 50.75p. Holders here are waiting for an update on drilling at the Puntland asset in Somalia. Horn Petroleum (CN:HRN) did announce earlier this week that the Shabeel-1 well on the Dharoor Block in Puntland, Somalia is currently at a depth of 2,384 metres and is drilling ahead to a planned target depth of approximately 3,800 metres. There are no results to report at this time.



Read more: http://www.oilvoice.com/n/FoxDavies_views_from_the_trading_floor_Gulfsands_Petroleum_Providence_Resources_and_Red_Emperor_Resources/222c6dfcdb19.aspx#ixzz1pxUP2UIE

FoxDavies views from the trading floor – Red Emperor Resources

Down 3% on the ASX

A very good day today, lets hope the retrace will give rise to a large rebound.
With rumours of news Wednesday should be another good day tomorrow.

Up 4.7% on the ASX

March 25, 2012

Somalia’s Puntland has selected British Petroleum as its choice of strategic partner in drilling and refining its huge oil deposits after oil discovery in the northern region of Somalia.

Intelligence shows that Britain is involved in a secret high-stakes deal for oil in Somalia and it is doing all it can to secure decades of oil deals with Somalia.

The British government is offering humanitarian aid and security assistance to the Somalia and in return Somalia to give them a stake in their energy industry.

Intelligence News has found out that secret talks are going on between British officials and Somali political and economic class over exploiting oil reserves in the northeastern region, the Puntland.

It is on record that Puntland Minister for International Cooperation Abdulkadir Abdi Hashi has approached BP as a partner after intense lobbying by the British government players.

Africa Oil began the first drilling in Somalia and found oil reserves in Puntland.

Africa Oil estimates Puntland alone has reserves of up to 4 billion barrels valued at $500 billion in its two drilling blocks alone.

Oil discoveries in Somalia has led to a new scramble for Somalia, a lawless and war torn horn of Africa nation where education, health system, and judiciary are not in existence.

Oil found in Somalia has led to a new power game where British government is doing economic espionage on Somalia and its neighbors with hope of edging out these neighbors out of the lucrative oil deals and rewards the oil will bring.

This is panacea for conflict, and the West is well known for that,;spurring and helping maintain conflicts as they mine the wealth and huge deposits to their benefit, a security and intelligence analyst pointed out.

http://ceelgows.com/somalias-puntland-has-selected-british-petroleum-as-its-choice-of-strategic-partner-in-drilling-and-refining-its-huge-oil-deposits-after-oil-discovery-in-the-northern-region-of-somalia/

http://www.moneyam.com/action/news/showArticle?id=4337356

Starting to rise this aft.

I see G. Bandy has increased his holding, all bodes well. Looks like an update next week.
May only be told the well is commercial, I say only. Could be a blue week from Monday.

Thanks to very sensible mike on ii,

Re value
The Majors are waiting for confirmation of a commercial discovery
If BP are to be involved they will be privy to that information before
the market and discussions are underway. Assuming total recoverable
from both blocks is 5bn bbls valued in the ground at $5 this equates to $5bn
for RMP or £13.66per share. However this is the approximate value over the life of the
Field after costs and allowing for the terms of the PSA . This is not
the same as the price a major oil company would be willing to pay.
It is not difficult to see that RMP is just a pawn in the overall scheme
of things. All the way down the line RMP has received special treatment.
Puntland Farm in, Georgia farm in and so now the question is what is the
deal PL refers to re offshore. I suspect whatever it is it will be to the benefit
Of both RMP and RRL shareholders (ie the boys)

My previous aid me memoir post which valued a 300m bbl recoverable discovery
at 300p and increased at the rate of 100p per 100m bbls (see yesterday's post for
details) did not include anything for offshore as we have not farmed in yet. The one thing
we do know is that RRL will end up with a 20% free carry of the prime offshore block which
could contain up to 30bn bbls as it is thought to be an extension of Nugal. The best way to
figure out the likely order of play is to work backwards from the end.
So PL has to farm out to a major in return for the free carry. In his own words "RMP will pay
the most" make a lot more sense when viewed in the context of them being taken out.
IMO RMP will be set up with 75% to 80% of the offshore block in exchange for a free carry
and an equity stake. Then with a bid of around £4.50 will benefit all parties
RRL RMP and The Buyer. RRL would get the free carry 20% and a sizeable amount of cash.
That is why the offshore Carl will not be finalised until a commercial discovery is officially announced. My £4.50 RMP minimum T/O valuation is based on RMP issuing 100m shares to
RRL. So RRL would end up with £450m to develop TT and Colo. Nice deal.
All of the above is just my opinion nothing more but it does make a great deal of commercial
sense as well as satisfying the soon to be reunited Somali Nation.

Roll on next week VSM

Should be a very good week for RMP.

Reading the boards looks like investors have been limited in buying today. Another good day.

http://www.moneyam.com/action/news/showArticle?id=4344779