RED EMPEROR RESOURCES NL Manager of Company Announcements
ASX Limited
Level 8 Exchange Plaza
2 The Esplanade
PERTH WA 6000
By E‐Lodgement
Quarterly Report for the Period Ending 30 June 2014Issued Capital: 266M * | ASX Code: RMP | Closing price: A$0.061* |
* as at 30 June 2014 | AIM Code: RMP | Closing Price: £0.0332* |
The Board of Red Emperor Resources NL (Red Emperor or the Company) is pleased to provide the following commentary and Appendix 5B for the period ending 30 June 2014.
Georgia Project
During the quarter, the Company's JV partner and Operator, Strait Oil & Gas UK (Strait), continued to advance discussions and negotiations with respect to potential transactions associated with the JV and it's Production Sharing Contracts (PSCs) in Georgia. Strait advises Red Emperor that a positive outcome to these discussions is still likely to occur.
In June, Strait signed a one year extension of the PSC for Block VIb with the State
Agency for Regulation of Oil and Gas.
Puntland Project
Over the past quarter, the Federal Government of Somalia has been engaging the Somali States, including Puntland, in a process of revising the federal hydrocarbon law. The main issues being contemplated and negotiated by all parties are those of revenue sharing and where the authority to conduct contractual negotiations in the future will reside. These issues are delicate and discussions are ongoing, with Red Emperor's Joint Venture Partner and Operator, Horn Petroleum (TSXV: HRN), having met with the Puntland President, Mr Abdiweli, as well as the Federal Minister of Oil and Gas during the quarter.
The Puntland Government obviously believes that it holds the right and authority to assign and administer Production Sharing Contracts (PSCs) within its boarders and Red Emperor's Joint Venture remains confident that the existing Dharoor and Nugaal PSAs
BOARD & MANAGEMENT
Mr Greg Bandy
EXECUTIVE DIRECTOR
Mr Jason Bontempo
NON‐EXECUTIVE DIRECTOR
Mr Stephen Brockhurst
NON‐EXECUTIVE DIRECTOR
Ms Rebecca Sandford
Ms Sara Kelly
JOINT COMPANY SECRETARY
REGISTERED OFFICE
Ground Floor
1 Havelock Street
West Perth WA 6005
POSTAL ADDRESS
PO Box 1440
West Perth WA 6872
CONTACT DETAILS
Tel: +61 8 9488 5220
Fax: +61 8 9324 2400
WEBSITE
www.redemperorresources.com
SHARE REGISTRY Computershare Level 2
45 St Georges Terrace
Perth WA 6000
Tel: 1300 555 159
NOMINATED ADVISER & UK BROKER
Fox Davies Capital Limited
1 Tudor Street
London EC4Y 0AH
Tel: +44 (0) 203 463 5010
ASX CODE | AIM CODE
RMP
are valid. At recent meetings in Abu Dhabi, the JV was verbally assured of this, however it is yet to be presented with anything in writing by the Federal government to confirm it. Discussions continue with the State and Federal governments to ensure alignment with regards to contracts and a secure working environment, as well a commitment to exploration in Puntland and the unlocking of what is believed to be material natural resources within its boarders.
Corporate
During the quarter, Red Emperor conducted a detailed review of at least 6 separate projects and opportunities in a number of global jurisdictions including the UK, Nigeria, Russia and Australia. While none of these opportunities have resulted in a transaction, Red Emperor is actively looking for additions to its current portfolio of assets while remaining committed to maintaining its substantial cash position.
Along with a short‐term financing loan, which has now been repaid, the company also invested in and committed to a placement in ASX listed company, Highfield Resources Limited (ASX: HFR) during the quarter.
For and on behalf of the Board
Greg Bandy
Executive Director
Ground Floor, 1 Havelock Street, West Perth WA 6005 | Tel: +61 8 9488 5220 | Fax: +61 8 9324 2400 | www.redemperorresources.com
ABN 99 124 734 961
ASX Additional Information for Quarterly Report to 30 June 2014
Tenement Reference | Location | Working Interest at Beginning of Quarter | Acquired/ Disposed | Working Interest at End of Quarter | |
Oil & Gas Beneficial percentage interests held in farm‐in or farm‐ out agreement | |||||
Block Vla | Republic of Georgia | 20% | N/A | 20% | |
Block Vlb | Republic of Georgia | 20% | N/A | 20% | |
Dharoor Block | Puntland | 20% | N/A | 20% | |
Nugaal Block | Puntland | 20% | N/A | 20% |
Ground Floor, 1 Havelock Street, West Perth WA 6005 | Tel: +61 8 9488 5220 | Fax: +61 8 9324 2400 | www.redemperorresources.com
ABN 99 124 734 961
Appendix 5B
Mining exploration entity quarterly report
Appendix 5B Mining exploration entity quarterly reportIntroduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
RED EMPEROR RESOURCES NL
Rule 5.3
ABN Quarter ended ("current quarter")
99 124 734 961 30 JUNE 2014
Cash flows related to operating activities
1.1 Receipts from product sales and related debtors
1.2 Payments for
(a) exploration and evaluation
(b) development
(c) production
(d) administration
1.3 Dividends received
1.4 Interest and other items of a similar nature received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward) | (471) | (1,656) |
Cash flows related to financing activities 1.14 Proceeds from placement 1.15 Proceeds from option exercise 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Costs associated with issue of shares Net financing cash flows | ‐ ‐ ‐ ‐ ‐ | ‐ ‐ ‐ ‐ ‐ |
Cash flows related to financing activities 1.14 Proceeds from placement 1.15 Proceeds from option exercise 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Costs associated with issue of shares Net financing cash flows | ‐ | ‐ |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | (471) 10,792 ‐ | (1,656) 11,977 ‐ |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | 10,321 | 10,321 |
Current quarter
$A'000
1.2 Aggregate amount of payments to the parties included in item 1.2 43
1.2 Aggregate amount of loans to the parties included in item 1.10 Nil
1.2 Explanation necessary for an understanding of the transactions
Payments of Directors Fees and Remuneration 43
Non‐cash financing and investing activities2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
Nil
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
Nil
+ See chapter 19 for defined terms.
Appendix 5B Page 2 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
Financing facilities availableAdd notes as necessary for an understanding of the position.
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter4.1 Exploration and evaluation
4.2 Development
4.3 Production
4.4 Administration
Reconciliation of cashReconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
Changes in interests in mining tenements6.1 Interests in mining tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements acquired or increased
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 3
Appendix 5B
Mining exploration entity quarterly report
Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number | Number quoted | Issue price per security (see note 3) (cents) | Amount paid up per security (see note 3) (cents) | |
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs, redemptions | Nil | |||
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs, redemptions | Nil | |||
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs | 266,234,221 | 266,234,221 | ‐ | ‐ |
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs | Nil Nil | |||
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted | Nil | |||
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted | Nil Nil | |||
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter | 594,324 5,920,000 5,166,565 1,170,000 | ‐ ‐ ‐ ‐ | $0.17 & £0.11 $0.265 & £0.18 £0.305 £0.32 | |
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter | Nil | ‐ | ||
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter | Nil | ‐ | ||
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter | Nil | ‐ | ||
7.11 Debentures (totals only) | Nil | Nil | ||
7.12 Unsecured notes (totals only) | Nil | Nil |
+ See chapter 19 for defined terms.
Appendix 5B Page 4 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
GREG BANDY Executive Director
30 July 2014
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items
6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries
and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 5
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