The Board of Red Emperor Resources NL (ASX/AIM: RMP) (“RMP”, “Red Emperor” or the “Company”), the natural resource exploration company, is pleased to provide a further operational update with respect to preparations for the drilling of the Winx-1 exploration well, located on the Western Blocks, North Slope of Alaska.
· Ice road construction for the Winx-1 exploration well has commenced
· Winx-1 Permit to Drill submitted on schedule
· Spud of the Winx-1 exploration well on schedule for mid-late February 2019
RMP is pleased to announce that 88 Energy Limited (ASX/AIM: 88E), in its capacity as consortium operator, has commenced construction of the approximately 11-mile (18 kilometre) ice road required for mobilisation of the drill rig. It is estimated that the ice road will take approximately 3 weeks to complete after which construction of the ice pad, from which the Nordic Rig#3 will drill the Winx-1 well, will commence.
Figure 1 | Ice road construction commences in preparation for mobilising the drill rig to the Winx-1 well location
In addition, RMP is pleased to advise that the requisite application for a Permit to Drill for the Winx-1 exploration well was submitted on schedule to the Alaska Oil and Gas Conservation Commission (AOGCC) prior to the 2018 calendar year end. Most importantly, all logistics and permitting remains on schedule for a mid-late February 2019 spud date. Additional details of the expected drilling and testing programme will be released in due course.
The Winx prospect is a 3D seismic defined conventional oil prospect in the successful Nanushuk play fairway with a gross mean unrisked prospective resource of 400 million barrels (“MMbbls”) (126MMbbls net to Red Emperor) and is adjacent to the Horseshoe 1/1A discovery well drilled by the Armstrong/Repsol JV in 2017. Refer to the Company’s announcement of 25 June 2018 for further details.
Cautionary Statement: The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
Red Emperor’s Chief Executive Officer, Gracjan Lambert, commented:
“It is very exciting to reach this significant operational milestone with commencement of ice road construction. We are on schedule and fast approaching what will be a very exciting and potentially company transforming well.”
Figure 2 | Winx-1 exploration well, Western Blocks, Alaska North Slope, targeting extension of the Nanushuk play
The primary objective of the Winx-1 exploration well is the Nanushuk Topset play, targeting the Nanushuk 4 and 5 sands. As can be seen in Figure 3, the Winx prospect has been identified using the Nanuq South 3D which covers the third party 2017 Horseshoe discovery plus a large swathe of the “Western Blocks”. Similar amplitude response is observed at the Winx prospect to that seen at the successful Horseshoe well location, which is situated approximately 4 miles (6 kilometres) to the west.
Figure 3 | Winx-1 targeting multiple stacked prospects with strong amplitude support