On December 17, 2018, Red Emperor Resources NL announced the operations update with reference to the drilling of the Winx-1 exploration well. The 3D seismic defined conventional oil prospect is located on the Western Blocks, North Slope of Alaska.
Red Emperor Resources NL (ASX: RMP) is in the exploration business. The company deals with natural resources exploration. The company has oil and gas projects on the Alaska North region and in South East Asian region of Philippines. With a registered office in Western Australia, the company was listed on 16th August 2007.
The company announced that its conglomerate partner 88 Energy Limited (ASX: 88E) had received approval for all major permits which are statutory for the drilling of the Winx-1 exploration well, which includes the Plan of Operations and key permits for both the ice road and ice pad. The company is also expecting another main permit, which is Permit to Drill. The approval is anticipated to be obtained by January 2019.
The approximate quantities of petroleum that may be potentially recovered by the future development of the project are related to unexplored accumulations. These estimates are exposed to the risk of discovery and risk of development.
The company is into definitive agreements with its partners 88 Energy Ltd and Otto Energy LTD. The agreement stated that the company would participate in the drilling of a highly resourceful and profitable Nanushuk oil trend exploration as well as on the Alaska North region from early 2019. Technically, Western Blocks estimated resource volume of 400 MMbbls, and there are 25 percent – 35 percent geological chance of success.
The relevant interests in the Western Blocks are as follows:
As stated by Red Emperor’s Managing Director Greg Bandy, that due to granting of the permits ahead of schedule, the company is better prepared for the successful drilling of Winx-1 exploration well in Q1 2019. Over the coming week, the company will update the market with a more detailed outlook of the operations.
Financial Performance: The company Interest received was $134,982, down 15% compared to $158,634 in the last year. Loss after Income Tax was - $690,097, up 9% compared to - $758,918 in the last year. Total comprehensive loss for the year was - $689,541, up 9% compared to -$759,525 in the last year. Earning Per Share was -$0.16, up 11% as compared to -$0.18 in the last year.
At the end of Quarter, the company had cash at bank of A$8m. The company had maintained a total asset of $10.36 million, down 5.6% as compared to $10.97 in the last year. Total Liabilities was $132,561, up 147% compared to $53,558 in the previous year.
Stock Performance: In the last six months, the price of the company has shown a positive return of 37.14 percent as on 14 December 2018 and 4 percent down over the past One month. Red Emperor Resources NL shares are trading at $0.047 with a market capitalization of $20.41 million as on 17 December 2018.