Horn's JV partner, Red Emperor, has just stepped up to participate in the Shabeel North well and have issued this press release. Notice the last paragraph, where Shabeel is estimated to have 300 million barrels and Shabeel North 375 mmb.
Spudding in the first week of June.
dat
21 May 2012
Red Emperor Resources NL
("Red Emperor" or "the Company")
Shabeel North - Exercise of Option to Participate
Red Emperor Resources NL (ASX: RMP | AIM: RMP) is pleased to announce that it
has, today, exercised its option to participate in the drilling of the Shabeel
North well, schedule to be spud in the first week of June.
As a result of this election to participate, Red Emperor maintains its 20%
Participating Interest in each of the Dharoor Valley and Nugaal Valley PSA's.
Red Emperor has always had an option, not an obligation, to participate in
Shabeel North and has now received Final Well Logs in relation to the recently
drilled Shabeel-1 well. After reviewing these logs and in light of the
significant discovery made by the Joint Venture in the Jesomma sands of
Shabeel-1, the board has no hesitation in participating in Shabeel North and
has advised Africa Oil Corp. accordingly.
Red Emperor has been paying preliminary costs associated with the preparation
of drilling Shabeel North and these costs can now be applied towards its cash
call commitments.
On 17 May 2012, Red Emperor announced the discovery of a 12 - 20m zone of
significant hydrocarbon pay in the Upper Cretaceous Jesomma Formation of the
Shabeel-1 well. This discovery will be flow tested after drilling the Shabeel
North well as the perforating equipment required to test this zone is currently
being shipped to site.
The rig is currently moving to the Shabeel North location, 3.5km north of
Shabeel-1, with spudding scheduled for the first week of June 2012. The primary
objective of this well will be to evaluate the Upper Cretaceous Jesomma Sands
that have been oil-bearing at the Shabeel-1 location.
Greg Bandy, Managing Director of Red Emperor, commented, "We are delighted to
announce that we are participating in the second Puntland exploration well and
as a result maintaining our 20% interest in this historical Joint Venture. We
were very encouraged by the results of the Shabeel-1 well that have confirmed
oil-bearing sands in two zones. This discovery has very positive implications
for the prospectivity of the basin. We look forward to the results of the
Shabeel North well and to testing the Jesomma sands to confirm the potential of
the block."
For further information please visit www.redemperorresources.com or contact:
Red Emperor
Greg Bandy +61 8 9225 2826
Rebecca Sandford +44 20 7025 7040
Cairn Financial Advisers LLP (Nominated Adviser)
Jo Turner +44 20 7148 7900
Tony Rawlinson
Fox-Davies Capital Limited (Joint Broker)
Daniel Fox-Davies +44 20 3463 5000
Richard Hail
Old Park Lane Capital plc (Joint Broker)
Luca Tenuta +44 20 7493 8188
Michael Parnes
Tavistock Communications
Paul Youens +44 20 7920 3150
Ed Portman
Background
Red Emperor Resources NL (ASX: RMP | AIM: RMP) is a natural resources
exploration company with interests in the frontier state of Puntland, Somalia
and the Republic of Georgia.
* In Puntland, Red Emperor holds a 20% working interest in two licences
encompassing the highly prospective Dharoor and Nugaal valleys. These two
exploration areas cover over 36,000km2. The operator and 60% interest
holder, Horn Petroleum Corp. (TSXV: HRN) has completed the first well
(Shabeel-1) in a two well program and is now moving the rig to the second
well (Shabeel North). The two wells are targeting 300mmbls and 375mmbbls of
best estimate Prospective Resources (100% basis). All site construction and
preparation work has been completed on the second well and is now in
readiness to accept the rig and begin drilling.
