Red Emperor Raises Funds to Drill Hawkeye-1 Well Offshore Philippines
Red Emperor Resources NL, an Australian oil and gas exploration company, announced Thursday an oversubscribed placing, through its London Broker, Brandon Hill Capital, and its Australian Broker, 708 Capital, of 72,000,000 new ordinary shares at $0.063 or GBP 0.04 (AUD 0.08) per share (the Placing Shares) to raise $4.53 million or GBP 2.88 million (AUD 5.76 million) before expenses (the Placing).
Proceeds from the raise and existing cash resources will principally be used to fund the upcoming drilling and potential appraisal activities in the Philippines, where the Company has a 15 percent interest in Service Contract 55 (SC55) in the southwest Palawan Basin. SC55 is a deepwater block in the middle of a proven regional oil and gas fairway that extends from the productive offshore Borneo region in the southwest to the offshore Philippine production assets northwest of Palawan. The first prospect, Hawkeye-1, was identified on 2D seismic in 2007 and further defined with a 232 square kilometers (600 square kilometers) 3D seismic acquisition in late 2009. Hawkeye-1 is assessed by the Otto Energy Limited, the Operator of Block, to contain a 'Best Estimate' STOIIP (stock tank oil initially in place) of around 480 million barrels of oil and a 'Best Estimate' Gross Prospective Resource of 112 million barrels (Red Emperor net 14.3 million barrels).
Otto has already secured the Maersk Venturer (UDW drillship) to drill the Hawkeye-1 prospect and the Company anticipates a spud date towards the end of July. The well is expected to take less than a month to drill.
Outside of its existing operations in the Philippines, the Company also continues to review numerous additional exploration opportunities. This financing will further compliment Red Emperor’s existing cash resources of circa $9.45 million (GBP 6 million) and enable the Company to move forward quickly should a suitable opportunity arise.
Application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM (Admission). It is expected that Admission will become effective and that trading in the Placing Shares will commence on or around 1 July 2015. The Placing Shares will rank pari passu in all respects with existing ordinary shares in the Company.
Following Admission, the Company will have 425,292,776 ordinary shares in issue. This figure may be used by shareholders in the Company as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest, under the Disclosure and Transparency Rules.
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