Red Emperor Resources NL (ASX: RMP) is into the business of natural resource exploration and extraction. The Company has oil and gas resources in the state of Puntland and the Republic of Georgia.
On 8 January 2019, the company stated that its securities (‘RMP’) will be put on a halt from trading at the request of the Company until the commencement of normal trading on 10 January 2019 or when the announcement relating to the proposed capital raising is released to the market.
The trading halt in respect of its ordinary shares (ASX: CFE), shall be effective from the commencement of trading this morning, Tuesday 8 January 2019.
At present, there are no reasons as such which shall prevent the Cape Lambert from the trading halt of its securities from quotation at the ASX or is not known of any other information necessary to let know the market about the suspension.
In an earlier announcement, the company stated 88 Energy Limited (ASX: 88E), in its capacity as consortium operator, has commenced construction of the about 18 kilometers road of ice that will be required for mobilizing the rig which will be drilled. The time that will be required, so as to prepare that road of ice will be about three weeks which is ahead of the construction of the ice pad.
Besides, RMP has briefed that the requisite application for the necessary permits to drill for the Winx-1 exploration well was submitted to the relevant authorities within the required time & before the closure of the calendar year 2018. Quintessentially, almost all of the needed logistics and permissions are on the schedule for a mining work to start at the February end of 2019. Additional information concerning the drilling and testing will be announced to the markets in the months to come. The Winx-1 prospect is a very good oil prospect which has been substantiated with the help of a 3D seismic technology. This prospect is beside the Horseshoe discovery well which has been already drilled by the Armstrong/Repsol JV.
For the FY 2018, the company registered a net loss after income tax of 6,90,097 vis a vis the loss of 758,918 which was recorded at the FY 2017. The basic, as well as the diluted loss per share attributable to the shareholders, came in at $ (0.16). The net cash utilized in the operating activities were reported at $ (672,031) vis-à-vis $ (681,641) which was utilized in the yesteryear.
The group has an exposure to the commodity price risk. The price of hydrocarbons are slated to be volatile and would be certainly influenced by various factors which are beyond the management’s control and vision. As the company is into the exploration business & thus unable to forecast the sales of commodities for the next 12 months. Thus, no hedging or derivative instruments have been utilized for hedging purposes.
Meanwhile, the stock price of the company has risen by 60 percent in the past six months as on 7 January 2019. RMP’s shares last traded at $0.056 with the market capitalization of circa $23.82 million.