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  • 3 years later...

One of the partners is ASX-listed Red Emperor Resources. Prior to the companyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s focus on the oil and gas sector, Red Emperor was involved in projects in the potash mining and timber sectors in Russia. However, the group has terminated these activities in order to realign the company as a frontier oil and gas play. The company also has a 25 per cent carried interest in the Jillewarra Project, a copper and gold project in Western Australia. However, this is considered to be non- core and it is not included in the house brokerÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s valuation Red Emperor became involved with Range and Puntland in August 2010 when it entered into a farm out agreement with Africa Oil (TSX: AOI) to acquire a 10 per cent working interest in Puntland These are the Dharoor and Nugaal Exploration areas. Red Emperor also acquired an option to increase its interest by a further 10 per cent to 20 per cent, conditional on the satisfaction of certain conditions including due diligence and government and shareholder approvals.

Red EmperorÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s 20 per cent interest in both Dharoor and Nugaal PSAs was formally approved in January 2011 in tandem with the PuntlandÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s government agreement to extend the PSAs for a further twelve months . Africa Oil has confirmed plans to drill an exploration well on Dharoor by July 27 2011. Africa Oil is also required to drill a second exploration well on either licence by September 2011 and Red Emperor has an option but not an obligation to participate. Africa Oil is the operator in Puntland. Range Resources holds the remaining 20 per cent.

In the Republic of Georgia Red Emperor holds a 20 per cent farm-in interest in the onshore blocks VIa and VIb. The companyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s partners here are Range, of course, and a private company, Strait Oil & Gas UK Limited (operator), both with 40 per cent interests.

Following a successful round of fund raising in February, Red Emperor has approximately A$14 million in the bank, consequently the company has sufficient funds to activate the farm-ins, so to speak, and participate in the exploration programmes. In Puntland Red Emperor will pay 30 per cent of the costs of the first well in July to earn its 20 per cent interest. This should amount to around US$7.5million. With independent analysis estimating total oil-in-place of over 18 billion barrels, Red Emperor is exposed to more than 3.6 billion barrels of potential upside.

In Georgia, Red Emperor will contribute 40 per cent of the drilling costs of a two well programme, capped at a total cost of US$5.6 million net to Red Emperor. The first exploration well is expected to be spudded soon. RPS Energy estimates that the acreage could contain over two billion barrels in place, providing Red Emperor with a net exposure of 400 million barrels.

Barney Gray the analyst at Old Park Lane Capital, which is broker both to Red Emperor and Range, has done an evaluation of Red Emperor on these oil and gas assets and cash and comes up with a value of US$210 million. Of this some US$165 million is ascribed to Puntland. This gives a value overall of A$1.39 a share and A$1.33 a share, fully diluted. Given that the shares are currently worth A$0.37 a share for a market cap of A$44.1 million, this is a lot of upside.Gray acknowledges this but says he has applied a raft of conservative risk factors to his estimates and still believes his assessment reflects the considerable upside potential that Red Emperor represents.

The company is now about to dual list on AIM. Greg Bandy the Executive Director and Tony King, the Executive Consultant who has worked closely with Range Resources over a number of projects, are currently in London and sat down with Oilbarrel to explain their thinking. They want to float Red Emperor on AIM because it offers a lot more investors the opportunity to gain exposure to two exciting, near term, but differing potential high reward prospects.

The projects are high risk. But as Greg Bundy says, Strait Oil & Gas, Africa Oil, and Range have spent of time work and money (at least US$ 40 million) getting the wells ready for drilling in the near future, what with seismic acquisition, due diligence competent persons reports and all. The company has the cash for three wells and will not have to raise any more. The valuation is indeed stuffed with a raft of risk factors. The chance of success in Puntland is put at between at between 7.5 and 11 per cent and the oil in the ground is valued at just US$7 barrel. Red Emperor is a pure exploration play there are no plans to buy production to underpin the company with cash flow. The company is riding on the coattails of Range. Greg Bundy says: ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“If you write about Range you also write about us, so investors know the story.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ He points out that Red Emperor with itÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s A$44.1million market cap is less than a quarter of the size of Range. So it is an elevated risk compared to Range, but then the leverage to the upside is also greater. The value could soar to more than the target A$1.33 a share in the event of success. But against this success is not guaranteed; only the drillbit will tell us.




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  • 8 months later...
  • 9 years later...
Future Metals NL (formerly named Red Emperor Resources NL) (ASX: FME) confirms the consolidation of its capital on the basis of every 100 fully paid ordinary shares being consolidated into 14 Shares became effective on 4 June 2021. The Company completed the consolidation of capital on 11 June 2021.
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FME is reinstated to official quotation today. The company raised $10,000,000 via the issue of 100,000,000 FPO shares at 10c a share. After the 14:1 consolidation FME now has 348,541,184 shares on issue.


FME has agreed to acquire Great Northern Palladium Pty Ltd, a company with $84,000,000 in accumulated tax losses and which owns 80% of the issued share capital of Panton Sill Pty Ltd; a company which holds the granted mining leases that cover the Panton PGM Project located approximately 60 kilometres north of Halls Creek in the East Kimberley region of Western Australia.


FME is trading at 21c today, more than double what it raised capital at in order to relist.

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  • 3 months later...

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