17th Jun 2016 07:14
LONDON (Alliance News) - Red Emperor Resources NL on Friday said its joint venture offshore Palawan Basin in the Philippines has received approval from the Philippines Department of Energy for a two-year moratorium until December 23, 2017, on required work under Service Contract 55.
During the moratorium period, the consortium will conduct specialised geophysical studies in the area surrounding the Hawkeye prospect, which encountered gas shows when it was drilled last year.
Red Emperor noted that although the Hawkeye 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.
Red Emperor also noted that its interest in the joint venture will increase to 38% from 15% after Otto Energy Ltd decided to exit in order to focus on its North American assets.
Red Emperor added that it continues to review new opportunities it believes could complement the current assets in its portfolio.
Shares in Red Emperor were trading up 1.0% at 1.08 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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