Red Emperor, Partners Drill Ahead at Georgia Well

Red Emperor along with its joint venture partners Strait Oil and Gas UK Ltd and Range Resources advised that the Mukhiani Well has been drilled to the intermediate depth of 1544 meters with a proposed total depth of 3500 meters.

Drilling operations are continuing after a short interruption to undertake a comprehensive data collection program for close analysis. The analysis is deemed prudent to determine if the well has reached the Paleozoic granite basement or is drilling through a sub-volcanic intrusive which is masking the targeted primary reservoir objective at a depth of about 2300m as interpreted from the helium survey and exists with other similar discoveries found under sub-volcanic intrusives. An additional factor for undertaking the analysis is the slow drilling rates that are being achieved through the highly variable intrusive complex.

A full suite of wireline logs has been successfully recorded. Additional valuable information has been obtained through the successful collection of 10 sidewall cores from critical intervals. Preparations are underway for cutting a full diameter conventional core within the nearest future. Once the coring program is completed, a Vertical Seismic Profile (VSP) survey will be run.

The new data will then be integrated into the full data set and the subsurface situation reinterpreted as appropriate. This reinterpretation will then be used to determine the next steps for the well depending on the progress of the well at that point in time. The VSP survey will be undertaken in approximately 10 to 14 days.

The Mukhiani Well is targeting the Vani 3 prospect which has the following estimated undiscovered stock tank oil-in-place ("STOIIP"):

  P90 P50 P10 Mean
Gross (100%) 41.7 92.7 178.2 115.2
Net Attributable to RMP (20%) 8.3 18.5 35.6 23.0

The geochemical helium survey undertaken by JV partner, Range Resources, confirmed the suitability of the first drill location with oil exploration and development prospectivity complementing the earlier seismic work completed on the target.