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RED EMPEROR RESOURCES NL - Quarterly Report and Appendix 5B

28 January 2016

Red Emperor Resources NL (“Red Emperor”)

Quarterly Reports

For The Period Ending 31 December 2015 and Appendix 5B

The Board of Red Emperor Resources NL (“Red Emperor” or the “Company”) provides the following commentary and Appendix 5B for the period ending 31 December 2015.

Philippines (SC 55)

Red Emperor advised during the December quarter that its Joint Venture partner and Operator, Otto Energy Limited (ASX: OEL) requested that a two-year moratorium be granted by the Philippines Department of Energy over SC 55. The JV fulfilled the work obligation under the current exploration Sub-Phase by drilling the Hawkeye-1 exploratory well in August 2015.  Although the well did not encounter gas in commercial quantities, it proved the presence of an active petroleum system in the contract area, which hosts the “Cinco Prospect” as well as several other leads.

The consortium intends to undertake further technical studies during the moratorium period, including a Quantitative Interpretation (QI) Study. QI is a relatively recent geophysical technique that is designed to gain a better understanding of existing and potential petroleum reservoirs. The Joint Venture expects a response from the Department of Energy with respect to its moratorium request in Q1 2016.

Subsequent to the end of the quarter, Red Emperor was advised by Otto Energy of its intention to exit the Joint Venture as part of its strategy to focus on its North American assets. As a result, Red Emperor would have the option to either maintain its 15% participating interest in SC 55 or be assigned a percentage of Otto Energy’s interest on a pro-rata basis. In this instance, Red Emperor’s participating interest could be increased by up to 22.5% to 37.5%. Red Emperor is considering its options and will advise the market accordingly.

Georgia

Red Emperor, a 20% shareholder of Strait Oil and Gas Limited (Strait), a Gibraltarian company with a valid Production Sharing Contract (PSC) across Block VIa in the Republic of Georgia, continues to be advised of ongoing negotiations with a potential purchaser of the PSC. Red Emperor understands that delays in reaching agreement with the potential purchaser have been due to volatility in the oil and gas price and political instability in the region. Strait is still hopeful of a conclusion to the negotiations before the end of Q1 2016.

For further information please visit http://www.redemperorresources.com/ or contact:

Red Emperor Resources:                      

Greg Bandy                                                                             +61 8 9212 0102                                                                       

Grant Thornton UK LLP (Nominated Adviser):
Philip Secrett, Jen Clarke, Jamie Barklem                                   020 7383 5100                                      

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly

report

Introduced 01/07/96  Origin Appendix 8  Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10,

17/12/10, 01/05/2013

Name of entity
RED EMPEROR RESOURCES NL

   

ABN Quarter ended (“current quarter”)
99 124 734 961 31 December 2015

Consolidated statement of cash flows


Cash flows related to operating activities
Current quarter
$A’000
Year to date (6 months)
$A’000
1.1 Receipts from product sales and related debtors - -
1.2 Payments for  (a)  exploration & evaluation
                      (b)  development
                      (c)  production
                      (d)  administration
-
-
-
(184)
(5,100)
-
-
(598)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature received
62

126
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other: Refund of Hawkeye-1 well costs 398 426

Net Operating Cash Flows

276

(5,146)

Cash flows related to investing activities
1.8 Payment for purchases of:        (a)  prospects
                      (b)  equity investments
                      (c)  investment in associate
-
-
-
-
-
-
1.9 Proceeds from sale of:   (a)  prospects
                      (b)  equity investments
                      (c)  other fixed assets
-
-
-
-
-
-
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -

Net investing cash flows

-

-
1.13 Total operating and investing cash flows (carried forward)
276

(5,146)

   

1.13 Total operating and investing cash flows (brought  forward)
276

(5,146)


 

Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. - 5,600
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other – fundraising costs - (388)
Net financing cash flows - 5,212

Net increase (decrease) in cash held

276

66
1.20 Cash at beginning of quarter/year to date 12,118 12,494
1.21 Exchange rate adjustments to item 1.20 (143) (309)
1.22 Cash at end of quarter 12,251 12,251

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

Current quarter
$A'000

1.23

Aggregate amount of payments to the parties included in item 1.2

69

1.24

Aggregate amount of loans to the parties included in item 1.10

Nil

1.25

Explanation necessary for an understanding of the transactions

Payment of Directors fees and Remuneration          $69k

 

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
n/a

   

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

n/a

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount available
$A’000
Amount used
$A’000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter

$A’000
4.1 Exploration and evaluation -
4.2 Development -
4.3 Production -
4.4 Administration 200

Total
200

Reconciliation of cash

Reconciliation 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. Current quarter
$A’000
Previous quarter
$A’000
5.1 Cash on hand and at bank 12,251 12,118
5.2 Deposits at call - -
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 12,251 12,118

Changes in interests in mining tenements and petroleum tenements

Tenement reference Nature of interest
(note (2))
Interest at beginning of quarter Interest at end of quarter
6
Interests in mining tenements held
See Appendix 1 below - - -
6.1 Interests in mining tenements tenements relinquished, reduced or lapsed
-
- - -
6.2 Interests in mining tenements tenements acquired or increased
-

-

-

-

Issued and quoted securities at end of current quarter

Description 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
7.3 +Ordinary securities 425,292,776 425,292,776 Fully Paid
7.4 Changes during quarter
(a)  Increases through issues
 (b)  Decreases through returns of capital, buy-backs



 



 
7.5 +Convertible debt securities (description)
7.6 Changes during quarter
(a)  Increases through issues
(b)  Decreases through securities matured, converted
7.7 Options 
4,500,000
4,320,000

-
Exercise Price
$0.055
$0.08
Expiry Date
31 December 2017
2 July 2018
7.8 Issued during quarter
 
7.9 Exercised during quarter
7.10 Expired during quarter
7.11 Debentures
(totals only)
7.12 Unsecured notes (totals only)

Appendix 1 – Interests in mining tenements held

Tenement Reference Location
Working Interest at
Beginning of Quarter
Acquired/
(Disposed)
Working Interest at End of Quarter
Block Vla Republic of Georgia 20% - 20%
Service Contract 55 Philippines 15% - 15%

Holder:             Oil & Gas Beneficial percentage interests held in farm-in or farm- out agreement.

Mining tenements acquired and disposed during the December 2015 quarter: Nil

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the December 2015 quarter: Nil


Source: PR Newswire (January 28, 2016 - 2:00 AM EST)

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