Red Emperor Resources (RMP.asx)

poodles · 28-01-2011 2:29am #1

I posted a link to information on Range Resources last June here.
Since then they have farmed-out 20% of their Georgia Project to an Australian company called Red Emperor Resources. (http://www.red-emperor.com)

The link to Range Resources is that they are farmed in on two of their projects (Puntland 20% and Georgia 20%)

The following are a few calculations that I've done up to show what a success in all three upcoming wells could be worth to the SP (18 bagger by the end of 2011!).

At the minute, after a recent capital raising of $12.2M AUD, Red Emperor are fully funded for a 3 well drilling campaign going into 2011.

Info:
Ticker: RMP.ASX
Shares in Issue: 149,616,114
Market Cap: $39.6M Aud or £24.8 Gbp
Current Shareprice: $0.265 Aud or 0.165p

First possible Georgia target:

-Vani 1 (V1) 171 million barrels OIP

Take say a conservative 30% Recovery rate: 51.3 million barrels
Georgia Government take: 65% - 35% (35% is 17.9 million barrels)
RMP's 20% = 3.59 million barrels
@ $30 per barrel = $107,730,000 = £66,624,095 GBP
Divided by number of shares in issue = 45p per share (currently 16.5p)

Similarly, by using the same figures for the second possible Georgia target:

-Kursebi 2 (K2): 160 million barrels OIP

Take say a conservative 30% Recovery rate: 48 million barrels
Georgia Government take: 65% - 35% (35% is 16.8 million barrels)
RMP's 20% = 3.36 million barrels
@ $30 per barrel = $100,800,000 = £62,320,527 GBP
Divided by number of shares in issue = 42p per share (currently 16.5p)

Similarly, by using the same method to calculate the first Puntland target:

-Puntland (First Drill): 1bn barrels OIP

Take say a conservative 30% Recovery rate: 300 million barrels
Puntland Government take: 50% - 50% (50% is 150 million barrels)
RMP's 20% = 30 million barrels
@ $10 per barrel = $300,000,000 = £185,548,754 GBP
Divided by number of shares in issue = 124p per share (currently 16.5p)

If RMP take part in the 2nd Puntland Drill that's due to be spudded by September 27th 2011 they might need to raise funds for this.

I'm assuming a Share Price of $0.50c.
In order to raise their required percentage of costs of $5m, they would need to issue an extra 10m shares.

* Under the Jan 2011 amended PSAs, a minimum of one exploratory well must be spudded in the Dharoor Valley Exploration Area by July 27, 2011. A second exploratory well is required to be spudded in the Nugaal Valley Exploration Area or, at the option of Africa Oil (as operator), in the Dharoor Valley Exploration Area, by September 27, 2011.

-Puntland (Second Drill): 800 mbbls OIP

Take say a conservative 30% Recovery rate: 240 million barrels
Puntland Government take: 50% - 50% (50% is 120 million barrels)
RMP's 20% = 24 million barrels
@ $10 per barrel = $240,000,000 = £147,660,503 GBP
Divided by number of shares in issue = 93p per share (currently 16.5p)

--->
Potential total worth if all four drills are successful could be up to £3.04 per share. The current SP is $0.265 Aud or 16.5p

That would mean a bag of 18 by the end of 2011 !!

It would be my own view that if RMP proved up some or all of the above oil reserves they would be bough out by a major oil company, perhaps from China.

Currently on the ASX only, RMP are aiming to be listed on the AIM market around the end of Q1-2011. This would be important because it will mean that the share will be dual listed allowing UK private investors to buy the shares through their ISA tax free accounts - which would give the company more attention from private investors. Also, as we can see from RRL / RRS - there should be far greater interest and volume once listed on the AIM.

All of the above is just my take and is open to scrutiny but I think it's not a bad bet to take with the potential rewards!

bestie · 28-01-2011 3:42am

Now I'm still very new to share dealing so trying to ascertain as much information as possible.

In your view being dual listed, would shares bought on the AIM influence alot of purchasing on the ASX shares value

i.e. demand overseas may stimulate demand at home?

I see their share price went from 3 cents to 25 in six months

crikey.

poodles · 28-01-2011 4:26pm

bestie wrote: »

Now I'm still very new to share dealing so trying to ascertain as much information as possible.

In your view being dual listed, would shares bought on the AIM influence alot of purchasing on the ASX shares value

i.e. demand overseas may stimulate demand at home?

I see their share price went from 3 cents to 25 in six months

crikey.

bestie, the buying / selling over the two different exchanges will be mainly linked - e.g if there is a lot of buying on the AIM during the day, then the ASX price will tick up to meet the exchange rate equivalent when the ASX market opens.

Being dual listed is important for UK private investors because it allows them to put the stock into their Individual Savings Account (http://en.wikipedia.org/wiki/Individual_Savings_Account)
The ISA will only allow AIM shares to be placed into them if the company is trading on a different country's main stock exchange. Any profits made on a share that is in an ISA is completely tax free. A maximum of £10,200 worth of shares can be placed into an ISA over a period of a year. (It's unfair when you think Irish get a tax free allowance of only €1,270 and pay Capital Gains Tax of 25% on gains over the TFA amount!)

Thargor · 28-01-2011 6:49pm

Any idea how/when the option for RRL holders to buy RMP when they list on AIM is going to work? Will the time to get in not have passed by then anyway?

poodles · 28-01-2011 7:29pm

Thargor wrote: »

Any idea how/when the option for RRL holders to buy RMP when they list on AIM is going to work? Will the time to get in not have passed by then anyway?

I'm not sure Thargor, I'll ask around and if I don't hear anything specific I'll be ringing the Oz broker myself on Monday.

neil.p.b · 10-02-2011 6:29pm

Any updates on this poodle?

poodles · 10-02-2011 7:09pm

neil.p.b wrote: »

Any updates on this poodle?

Updates on which Neil?

The $10m Institutional Placement was heavily over subscribed.
The $2m Placement for existing RRL shareholders is complete now too and I was told that it also was heavily subscribed to.
There's talk that before RMP list on the AIM this quarter that there might be another opportunity for Range holders to take up some sort of offer but I'm not so sure now, time will tell.

Shauny2010 · 10-02-2011 7:30pm

Poodles am I correct in that Red emperors shares in issue only account for 40% of the company? If thats true then doesn't that reduces the upside of the share price ?

poodles · 10-02-2011 8:14pm

Shauny2010 wrote: »

Poodles am I correct in that Red emperors shares in issue only account for 40% of the company? If thats true then doesn't that reduces the upside of the share price ?

I'm not sure I understand what you mean...
Total number of shares in issue after placement is 143 Million...

Fr Dougal Mcguire · 11-02-2011 5:14pm

is there anyway i can buy these on my davy online account. cant find them anywhere

poodles · 11-02-2011 5:24pm

Fr Dougal Mcguire wrote: »

is there anyway i can buy these on my davy online account. cant find them anywhere

Afaik Davy's don't let customers trade the ASX. Maybe ring them up and ask them.
You could go into AIB bank and buy over the counter but they will charge €100 on the commission or you could find another broker who will let you trade the asx.

When they list on the AIM you should be able to buy them through Davy's but I'd suspect at a premium to what they are now (~$.30c)

Shauny2010 · 11-02-2011 6:19pm

I tried to buy some yesterday evening by phone through ODL, it was after 6pm so I got through to some yank in FXCM who turned out to be a proper Nazi assh0le....
Share price rose by over 10%
needless to say I didn't get any stock

Fr Dougal Mcguire · 11-02-2011 6:32pm

poodles wrote: »

Afaik Davy's don't let customers trade the ASX. Maybe ring them up and ask them.
You could go into AIB bank and buy over the counter but they will charge €100 on the commission or you could find another broker who will let you trade the asx.

When they list on the AIM you should be able to buy them through Davy's but I'd suspect at a premium to what they are now (~$.30c)

Thanks for the reply poodles. Just one quick question.

Is it €100 to buy shares in aib and then €100 to sell again and do they also take a commission on your profit?????

Iv only ever used my davy online account, but i want to get in on this but dont fancy giving aib €100.

If i do buys shares with aib is it as simple as walking into any branch handing over my money and getting my shares back to me... or is it a big process

thanks in advance

bestie · 11-02-2011 7:14pm

Fr Dougal Mcguire wrote: »

Thanks for the reply poodles. Just one quick question.

Is it €100 to buy shares in aib and then €100 to sell again and do they also take a commission on your profit?????

Iv only ever used my davy online account, but i want to get in on this but dont fancy giving aib €100.

If i do buys shares with aib is it as simple as walking into any branch handing over my money and getting my shares back to me... or is it a big process

thanks in advance

AFAIK it's 32 euro commission per trade purchase, nothing to put shares in, they charge €12 to take them out - not sure if they charge commission again for the way out. (also €24 euro a year for a/c maintenance)

sharewatch charge €14.95 per trade plus €30 euro per line of stock out..
no account maintenance. Sharewatch use ODL which is far better than AIb's system, you can't see real time prices in AIB, very weak system.

Note: Just so you know, alot of AIM listed companies can't be found on AIB's system. RMP ain't there for sure, its on the aussie exchange.

poodles · 11-02-2011 7:21pm

Fr Dougal Mcguire wrote: »

Thanks for the reply poodles. Just one quick question.

Is it €100 to buy shares in aib and then €100 to sell again and do they also take a commission on your profit?????

Iv only ever used my davy online account, but i want to get in on this but dont fancy giving aib €100.

If i do buys shares with aib is it as simple as walking into any branch handing over my money and getting my shares back to me... or is it a big process

thanks in advance

The total AIB would charge for buying the stock for you would be €100 afaik.

You would receive the shares in paper form to your home address.
What you could do then is transfer these shares into electronic form with a broker who deal on the asx - TD Waterhouse for example. That whole process could take up to 6 weeks and in that time you won't be able to trade them.
As far as I remember, as long as you have a bank account it should be relatively easy to go into a AIB branch and buy over the counter.
I'd check with Davy's first to see if they can do anything for you - let them know what your intending to do...

poodles · 11-02-2011 7:24pm

bestie wrote: »

AFAIK it's 32 euro commission per trade purchase, nothing to put shares in, they charge €12 to take them out - not sure if they charge commission again for the way out. (also €24 euro a year for a/c maintenance)

sharewatch charge €14.95 per trade plus €30 euro per line of stock out..
no account maintenance. Sharewatch use ODL which is far better than AIb's system, you can't see real time prices in AIB, very weak system.

Note: Just so you know, alot of AIM listed companies can't be found on AIB's system. RMP ain't there for sure, its on the aussie exchange.

That's if your dealing through Goodbodys, Bestie.

Commission if you walk into a AIB branch and buy shares in paper form is minimum €100.

To transfer shares out they charge €12 per stock but there is a minimum charge of €40

Fr Dougal Mcguire · 11-02-2011 11:24pm

thanks for that lads.

whats the minimum invest do ya know bestie for sharewatch.

Is it 1000 to open an account like davy

bestie · 12-02-2011 3:26am

Fr Dougal Mcguire wrote: »

thanks for that lads.

whats the minimum invest do ya know bestie for sharewatch.

Is it 1000 to open an account like davy

I'm not quite sure, I just sent a small sum via wire transfer to see how long it takes. Didn't think there was a min tbh.

poodles · 12-02-2011 5:23am

bestie wrote: »

I'm not quite sure, I just sent a small sum via wire transfer to see how long it takes. Didn't think there was a min tbh.

try ringing them.

Shauny2010 · 12-02-2011 1:07pm

Sharewatch don't do accounts for individuals any more instead you get forwarded to ODL markets which in tern is owned by FXCM the American company.
Either way its the same process to set up an account with them as it is with any Irish broker..Ie the proof of residence,ID etc

They charge 14.95 per trade

neil.p.b · 15-02-2011 6:14pm

Poodles i haven't had a chance to have a proper look into RMP but is it right in saying it's just a higher risk/reward version of RRL?

Thanks

poodles · 15-02-2011 6:45pm

neil.p.b wrote: »

Poodles i haven't had a chance to have a proper look into RMP but is it right in saying it's just a higher risk/reward version of RRL?

Thanks

Neil, pretty much.
RRL have production in Texas and Trinidad to fall back on if Georgia / Puntland are not successful.

Cute Hoor · 16-02-2011 5:20pm

News from RRL today on Georgia drilling

Range Resources has Georgia on its mind as secures drill rig in the former Soviet state
Wednesday, February 16, 2011 Range Resources (ASX:RRS, LON:RRL) said today it has secured a drilling rig to begin work in the Republic of Georgia, paving the way for the company’s first exploration well in the former Soviet state.

The agreement with Edeco Petroleum Services will see mobilisation commence next month with the well expected to be spudded in April.

In Georgia, Range holds a 40 per cent farm-in interest in onshore blocks VIa and VIb, covering around 7,000 square kilometres.

It has completed a 410 kilometre two-dimensional seismic programme with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of oil-in-place.

Range is partnered in the country with Strait Oil and Gas and Red Emperor Resources.

Range director Peter Landau said of securing the drill rig: "This is a significant and exciting milestone for the company, as it paves the way for Range's first exploration well in Georgia, following the successful seismic program and helium survey.”

Range has been very busy of late and on Tuesday revealed that the fracture stimulation programme of the Russell Bevly Well had begun and the horizontal Ross 3H well will spud later this month.

Range has a 20 percent interest in the Russell Bevly well, which is part of the North Chapman Ranch Project in Texas.

The start of the initial stage of the multi-stage stimulation programme is imminent. The fracture stimulation operation is expected to take around a week to complete and should increase hydrocarbon flow rates and recoveries.

It will be performed in four stages consecutively, during which the fracturing fluid and proppant (support medium) will be placed in each of the four sand reservoir pay zones that have been previously logged in the well.

All four sand pay zones will be brought into production simultaneously, assuming the successful completion of the fracture stimulation.

This should result in a significant increase in production, given that the well is currently only producing under natural pressure from 11 feet out of a total pay across the four sand pay zones about 130 feet.

Following the fracture stimulation, a similar operation is planned for the nearby Smith #1 Well in April, once the joint venture has had a chance to observe the performance of the Russell Bevly Well.

Drilling of the first well has resulted in a commercial discovery with independently assessed gross recoverable reserves in place of 240 billion cubic feet (Bcf) of natural gas, 18 million barrels (mmbbls) of oil and 17 mmbbls of natural gas liquids (mean 100% basis).

The Ross 3H well on the company's East Texas Cotton Valley play, where Range recently increased its participating interest to 21.75 percent, will spud later this month.

Ross 3H represents another milestone in Range Resources' history as it is the company's first horizontal well.

The prospect has independently assessed gross recoverable reserves in place of 5.4 million barrels (Mmbbls) of oil (mean 100 percent basis).

Jayminato · 16-02-2011 5:57pm

I would fancy some of this action but cant get it on my ****ty AIB online account.

poodles · 16-02-2011 6:10pm

Seems that Strait Oil and Gas (the private company involved in the initial granting of the Georgia license) have applied and been successful in being granted Block VIII in the latest licensing round by the Georgian Government.

http://www.energy-pedia.com/article.aspx?articleid=142789

While no details have emerged about it yet (only just found out about this today) it's early days to suggest both Range and Red Emperor will be farmed-in again by Strait as per the current agreement but it is a very distinct possibility...

It might be more than just a coincidence that both Range and Red Emperor have released news on the 15/2/2011 regarding extra funding / financing..

RMP:
"In addition the Company has agreed to place a further 2,000,000 shares at an issue price of $0.20 to parties associated with the Georgian oil and gas project."

RRL:
"As per Range's announcement on 27 January 2011, the Company has drawn down £3,000,000 of its £20,000,000 facility. Please find attached Appendix 3B"

Jayminato · 16-02-2011 10:09pm

is it true that the revenue for this company in 2010 was only $20,500 with expenses of $1.5 mill. surely these horrible financials must be a concern. They will have 84,000,000 shares in circulation with 5,000,000 of these @ .20c

Pure punt on a pure start up exploration company?????????????

bestie · 16-02-2011 10:21pm

Jayminato wrote: »

I would fancy some of this action but cant get it on my ****ty AIB online account.

I feel your pain, what a god awful system. Blind trading. Like russian roulette when you purchase a trade. Waiting to cancel it after only 3-4 days of use.

poodles · 20-02-2011 10:01pm

I've updated my original post on the first page if anyones interested.

poodles · 07-03-2011 9:18pm

RMP will be listing on the AIM mid-April

Update from a clued-in investor:
Georgia - Rig is awaiting loading onto ship for transport to Georgian
port, then overland and rig prep on site for a spud date scheduled to be
25/4. This has slipped from my original 10/4 due to delays with sourcing a
ship to appropriate destination.

neil.p.b · 10-03-2011 2:45am

Red Emperor to Dual List on AIM
Red Emperor Resources NL (ASX: RMP) is pleased to announce that it has signed mandates with key
participants in the UK to help facilitate a fasttrack listing on the AIM market of the London Stock Exchange.
Given the exposure RMP's joint venture partners have in the northern hemisphere and the high level of
interest and demand the Company has received from potential UK investors, the Board has formally agreed in
principle, subject to regulatory approvals, to undertake a fasttrack listing on AIM in the UK.

Key Points:
· Nominated Adviser (Nomad) appointed Cairn Financial Advisers LLP has been retained as RMP's
Nomad · Broker appointed Old Park Lane Capital Plc (current broker to Range Resources) has been retained as
broker to Red Emperor's AIM listing · Competent Persons Reports (CPRs) currently being prepared be Gaffney, Cline & Associates and RPS
Energy Consultants Limited · AIM listing date expected to be early May 2011

Commenting on the dual listing Executive Director Greg Bandy said, "Being listed on AIM in the UK is a big step
for Red Emperor and something that current and future shareholders have been looking for us to do since
entering into farmin agreements with Africa Oil Corp. (TSX: AOI) and Range Resources Limited (ASX: RRS, AIM:
RRL). We think we offer a leveraged opportunity into our current exploration assets and present significant value
when compared to our peers, one of which is already AIM listed. We look forward to being admitted to AIM in
the UK around the time of our first well in Georgia being spudded."

For and on behalf of the Board

Greg Bandy
Executive Director

poodles · 28-03-2011 10:01pm

Old Park Lane Broker Report for Red Emperor Resources

http://www.red-emperor.com/files/announcements/RMP%2023-03-11.pdf

Current SP: $0.35c
Broker Target Price: $1.33

Red Emperor Resources (RMP.asx)

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