2nd Mar 2015 08:36
LONDON (Alliance News) - Shares in Red Emperor Resources NL jumped almost 50% early Monday after it said its has signed a farm-in agreement with Otto Energy Philippines Inc for the SC55 block, offshore the Philippines, while a drillship has been secured with Maersk to drill the Hawkeye-1 exploration well.
Red Emperor has signed a farm-in agreement with the subsidiary of Australia's Otto Energy Ltd, Otto Energy Philippines, earning a 15% working interest in the highly prospective Block SC55, offshore the Philippines.
Service Contract 55, also known as, SC55, is located in the southwest Palawan Basin, and was awarded to Otto Energy Investments in 2005. Otto had been actively seeking partners to reduce its exposure to the project.
Red Emperor said Monday that it will participate in the upcoming Hawkeye-1 exploration well that will test the significant hydrocarbon potential of the Southern Palawan Basin.
The companies said a a letter of intent has been entered into with drilling giant Maersk to secure the Maersk Venturer ultra-deepwater drillship to drill the Hawkeye-1 exploration well. Drilling of the Hawkeye-1 exploration well is expected to commence early in the third quarter of 2015.
"After extensive review of many potential projects, the Red Emperor board have not only taken advantage of a depressed oil market that has seen drill rig rates halve and farm-in promotes reduce
significantly, it has concluded the robustness of the Hawkeye prospect, and leverage to success in follow-up potential, a compelling investment opportunity for Red Emperor and its shareholders," said Red Emperor Managing Director Greg Brady in a statement.
Red Emperor shares were trading 45% higher Monday morning at 3.19 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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