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Red Emperor Resources

FROM OLD PARK LANE

(ASX & AIM: RMP)
Informed Discussion. No ramping. No deramping.

FROM OLD PARK LANE

Post Thu Apr 12, 2012 10:55 am

Old Park Lane Capital said of Red Emperor: "Given that Red Emperor has not yet probed the primary targets in the deeper zones, we believe that the easing of the share price is unjustified.

"The oil and gas shows in the shallower horizons are indisputably positive news and the prospect of additional hydrocarbons in these intervals would provide very attractive upside to pre-drill resource estimates of the primary targets in Shabeel."
niszczu
 
Posts: 161
Joined: Mar 2012

Re: FROM OLD PARK LANE

Post Thu Apr 12, 2012 10:57 am

rmp will move north next week imo
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mmm281664
 
Posts: 2954
Joined: Mar 2012
Location: Yorkshire

Re: FROM OLD PARK LANE

Post Thu Apr 12, 2012 11:20 am

Full article:


http://www.iii.co.uk/articles/31945/ran ... abeel-well

Range and Red Emperor unveil initial results from Shabeel well
By Patrick Smith | Thu, 12/04/2012 - 10:10

Initial results from drilling at the Shabeel well in Puntland, Somalia - with stakes held by Red Emperor Resources (RMP) and Range Resources (RRL) - were positive, but further testing will be required to confirm the quality of the find.

The sands at approximately 1,660 metres depth exhibited both oil and gas shows and analysis indicated a potential pay zone of between 12 and 20 metres in the section.

The section is dominated by upper cretaceous sands and shales of the tisje/jesomma formations.

The joint operators said that attempts to sample formation fluids using a wireline tester were not successful and so the zone will require cased hole testing to confirm whether it is oil bearing.

Horn Petroleum, the partner carrying out the drilling, said it plans to continue drilling to a depth of 3,800 metres to evaluate the primary and secondary reservoir targets.

Red Emperor managing director Greg Bandy commented: "We are very pleased with the progress of the drilling programme and the results seen to date.

"Confirming an active petroleum system is particularly significant, especially given that we are yet to reach the primary objectives of the well. We look forward to updating the market as we get closer to target depth."

Range holds a 20% working interest in the Puntland licences that encompass the Dharoor and Nugaal valleys, while Canadian company Africa Oil holds a 45% interest through its shareholding in Horn Petroleum. Red Emperor owns 20%.

Range also announced that its initial 21-well program in Trinidad continues to make significant progress, with three of the rigs now fully operational.

The QUN 119/QUN 120 and QUN 122 wells have all been successfully drilled and logged and are in the process of being brought into production. QUN 121 now has a drilled surface hole and cemented surface casing.

The QUN 119 well achieved initial production rates of 130 barrels of oil per day (bopd) with production now stabilised to around 100 bopd under natural pressure.

The QUN 120 well is targeting 120 bopd from the several zones encountered and the QUN 122 well was showing initial production rates of up to approximately 50 bopd under natural pressure after hitting resistive oil sands.

With the other wells being brought into production, Range expects output to reach 1,000 bopd within the coming weeks.

Analyst view

On Range, analysts at Panmure Gordon said: "We retain our 'buy' recommendation and 18p target price. Range is underpinned by 2P [proven and probable] reserves (24 million barrels of oil equivalent) and a production target of 4,000 barrels a day by 2014. In its recent updates the company guided to accelerated production in Trinidad supported by the commissioning of additional rigs and the drilling of deeper targets."

Old Park Lane Capital said of Red Emperor: "Given that Red Emperor has not yet probed the primary targets in the deeper zones, we believe that the easing of the share price is unjustified.

"The oil and gas shows in the shallower horizons are indisputably positive news and the prospect of additional hydrocarbons in these intervals would provide very attractive upside to pre-drill resource estimates of the primary targets in Shabeel."
niszczu
 
Posts: 161
Joined: Mar 2012

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