Red Emperor Partners Finish VSP at Georgia Well

Red Emperor along with its joint venture partners Strait Oil and Gas UK Ltd and Range Resources advised that following the completion of the Vertical Seismic Profiling ("VSP") on the Mukhiani Well, in Georgia, the Company commenced to flow test two zones of interest while waiting for VSP interpretation results.

The first test (open hole flow test) at 720m - 768m did not flow as of this morning GMT. The second test (perforation formation flow test at 330 - 370m) will now be undertaken.

The Company will provide an update as to the VSP interpretation results and second flow test next week based on current schedules.

The VSP interpretation results will confirm whether or not the current zone of hard rock that the well has reached is basement rock or a volcanic overthrust. This current depth is significantly shallower than the initially planned total depth (of approximately 3,500 m) to the primary objective based on surface seismic interpretation. If the VSP interpretation confirms the rock encountered is indeed basement, drilling will not continue with preparations to commence for the drilling of the second exploration well, the Kursebi 2, while if it indicates it is a volcanic overthrust, a decision will be made whether to proceed drilling after reassessing the likely lithography and target potential.


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