Red Emperor Resources updates market on quarterly progress

25th Oct 2016 11:23

(ShareCast News) - Red Emperor Resources posted an update for the quarter to 30 September on Tuesday, confirming all relevant documentation for the transfer of Otto Energy's equity interest in Block SC 55 was prepared by Otto during the period.The AIM-traded firm said the documentation was also approved by the joint venture and has now been submitted to the Philippines Department of Energy for final approval.Once ratified by the DoE, Red Emperor's equity interest will increase from 15% to 37.5%.In June, the DoE formally granted a two-year moratorium, until 23 December 2017, on required work activity under Service Contract 55.During the moratorium period, Red Emperor said the JV will conduct specialised geophysical studies in the area surrounding the Hawkeye Prospect, which encountered gas shows when it was drilled last year.Although the Hawkeye well did not encounter gas in commercial quantities, it proved the presence of an active petroleum system in the contract area that hosts the Cinco Prospect as well as several other leads, the board said.In Georgia, sale negotiations were continuing with at least one interested party for the purchase of Block VIa."Red Emperor is not involved in the negotiations, although remains a 20% shareholder of Strait Oil and Gas which currently holds the Production Sharing Contract across Block VIa," the board said in a statement."The board is currently reviewing a number of opportunities, both at specific asset level as well as at a corporate level and believes it is well placed to advance these discussions further during the current quarter," it added, commenting on its wider corporate scope.