Red Emperor Resources is a natural resource exploration company with oil & gas interests in the frontier state of Puntland, Somalia and the Republic of Georgia.
Red Emperor, Range rally on Puntland drilling update
Shares in Red Emperor Resources (ASX:RMP, LON:RMP) jumped by 25 per cent as initial drilling of its first well in Puntland, Somalia showed signs of oil.
Red Emperor said the Shabeel-1 well on the Dharoor Block in Puntland, Somalia had reached a depth of 2002 metres against a target depth of 3800 metres.
Operator Horn Petroleum said the well is currently drilling a 400 metre section composed of interbedded sandstones and shales believed to be Upper Cretaceous in age.
Most of the sandstone intervals in this section have exhibited oil and gas shows confirming the existence of a working petroleum system, it added,
“Determination of the quality of the reservoir and prospectivity of any potential oil bearing intervals cannot be determined until downhole electric logs and formation tests are concluded,” Horn said.
The well has also yet to penetrate the main reservoir targets in the Lower Cretaceous and Jurassic.
David Grellman, president and chief executive of Horn Petroleum, said: "While we are encouraged by the hydrocarbon shows in the well, there is still a great deal of information which must be collected before we are able to properly evaluate the results to date.”
Red Emperor and Range Resources (LON:RRL) each hold a 20 per cent working interest in the licences that encompass the Dharoor and Nugaal valleys in Puntland, while Africa Oil holds a 45 per cent interest through its shareholding in Horn Petroleum.
Range Resources shares rose by 5 per cent to 12.62p.