Red Emperor Resources (RMP.asx)

beagle001

poodles what broker do you use for this company and is it worth getting in at this price now?

poodles

beagle001 wrote: »

poodles what broker do you use for this company and is it worth getting in at this price now?

Hey beagle, I use TD Waterhouse which trade the ASX and other international stock exchanges.

I can't predict the future but I really think the share price could be double what it is now by the time it lists on AIM around May 5th (don't hold me to that!) so I guess it's worth getting in at current levels imho

beagle001

Cheers use TD waterhouse myself,
Will investigate more and hope for the best.

treatyman

Very little action on the ASX these days for RMP...

Thargor

Hoping it stays that way because Ill have 5k to pile into it this time next week.

neil.p.b

I'll be buying in tomorrow. Sold my sound oil holding today to do so. Would have preferred to buy in tonight but funds didn't clear in time. Hoping it can stay between 30-32 until then. Looking forward to the next 6 months in RMP and RRL

Thargor

Im hoping to see it the same or lower every morning when I check it these days aswell, mightn't have the money until next week now, just hoping they hold at these levels a few days more, I think we might be alright til the end of the month though. Im going to plough 10k in here.

poodles

I didn't expect it to drop to 30c but it's a good opportunity if you have the funds ready imho.

It's approx. 3 weeks until AIM listing and I'm expecting the SP to rally closer to and after the date.

mick_ser

Hi lads i've been involved in range for over 18 months very lucky to come across it for my first share!! have been a lot of ups and downs wth other shares since..have to agree i do see significant upside in RMP, not involved atm due to funds being tied up, hoping to buy soon though.
o/t anyone involved in aex, rrr, mxp, her?

neil.p.b

Typical, the second you start wanting it to go down or hold so you can buy in at that level it starts shooting up! :mad:

xertpo

I read from one poster on RUM this morning that he felt the drawdown was over and he thought we should get a bump in the share price. And sure enough...up we go.
I'm tempted to take a profit on this one if it hits .25 and recoup my BOI fiasco, but there may be something to this company.

Decisions, decisions.

neil.p.b

I'm holding. Even at .25 i can't see any other company i'd prefer my money to be in. Too much going on at the the moment to even consider topslicing yet

xertpo

neil.p.b wrote: »

I'm holding. Even at .25 i can't see any other company i'd prefer my money to be in. Too much going on at the the moment to even consider topslicing yet

You're most likely spot on Neil. I'm interested to see where the sp goes tomorrow.

Thargor

RMP and RRL both up 8-10%, must be news leaking about Georgia, wonder if theres any hope they'll hold at this level for another few days now.

neil.p.b

I managed to place my order for RMP earlier, only had 4k to put in though. Could have sold some RRL but i'm happy enough with my position in both. Going to watching very closely on opening later!!

Either news leaked or DD ended. News probably monday but i'd expect another rise tomorrow.

EDIT:

According to some on LSE DD is still in progress. Which is excellent considering the rise, can't wait to see what happens when it does end (if in fact it is still going on!)

Thargor

What price did you get? My cheque never came, it could be next Friday before I can trade now

neil.p.b

I won't know until the ASX opens later. Bid was at 31.5 at close last night, even though it closed at 32.5. After RRLs rise i presume it'll be around 34. I budgeted for .35 in any case, can't imagine it'd open any higher than that

EDIT

Got in at .32. In hindsight i could have bought 10% more shares than i did, but happy enough to be in now.

Bernice101

Humm... I wonder if now is still a good time to buy a few shares in Red Emperor, or is it best to wait and see what is going to happen with RRL, as their trading has been suspended?

poodles

Bernice101 wrote: »

Humm... I wonder if now is still a good time to buy a few shares in Red Emperor, or is it best to wait and see what is going to happen with RRL, as their trading has been suspended?

Bernice, RRL's trading halt has nothing to do with Red Emperor - it will be news on its Trinidad operations.

RMP are still aiming to list on AIM for the first week in May although no date has been finalised as yet.

I'd expect a PR offensive by Old Park Lane Brokers (both privately and publicly) as we get closer to that date.

Bernice101

Thank you for the info Poodles. I bought in at .33 last night and am unsure if I should convert to AUS dollars or stay in Euros? I am in euros at the moment, and plan on selling the shares in a few months.

poodles

Bernice101 wrote: »

Thank you for the info Poodles. I bought in at .33 last night and am unsure if I should convert to AUS dollars or stay in Euros? I am in euros at the moment, and plan on selling the shares in a few months.

What broker did you use?

If it was TD, just make sure you settled in the currency that you had the cash in your account (most likely Euros) to avoid going into a negative position (if you settled in Aus Dollar, when you had euros in your account)

Bernice101

poodles wrote: »

What broker did you use?

If it was TD, just make sure you settled in the currency that you had the cash in your account (most likely Euros) to avoid going into a negative position (if you settled in Aus Dollar, when you had euros in your account)

Thanks for your response poodles. I am currently with Sharewatch, though plan on moving to TD as they seem to have much better rates. I got the impression it would be best to convert to dollars if I was trading medium/long term, but I only plan on holding the shares for a few months. As I don't plan on converting, is it so that I will be paying interest on fluctuations between euro/dollar?

poodles

New Broker Report out..

http://www.red-emperor.com/files/announcements/RMP%2021-04-11.pdf


Target price raised from $1.33 to $1.87 - current SP $0.36

Grecco

Hi Poodles, I enjoy following your threads, So I read and studied that report, from what I see the is that if oil is found in Puntland and Georgia it will have give Red emperor a Net asset value $315m which equates to A$1.87 per share however the report talks about how theres only a 1 in 10 chance of finding oil in both places.
So would I be right in saying that if Oil wasn`t found then the SP would stay at roughly $0.30 as the funding is in place for these drills or could the SP have a major slip back because if that was going to happen then Red emperor is then nothing more that a 10:1 bet that I could on the 2:15 down at the local bookies!!

poodles

Hey Grecco, the COS in Puntland has been given as about 10% in both Puntland and Georgia but these two areas are largely unexplored in recent times and as such initial drills will be given a cautious and conservative chance of success. If Oil was to be found (or not), Geologists will be able to re-visit the seismic data and re-calculate a new chance of success on future drills based on the soil / rock and oil samples that they collect.


Taken from Wiki:
Chance of Success - An estimate of the chance of all the elements (see above) within a prospect working, described as a probability. High risk prospects have a less than 10% chance of working, medium risk prospects 10-20%, low risk prospects over 20%. Typically about 40% of wells recently drilled find commercial hydrocarbons.


For the case of Georgia and Puntland, looking back on history and you'll see why both RRL and RMP are good speculative buy-rating companies.

In Georgia, a lot of wells were drilled in the 80's and 90's in and close to the Blocks that RMP are drilling in. Most of these wells were drilled to shallow depths in the hope of finding water but Oil was found in a lot of these drills but was never tested for flows etc.
All the available data would have been used by Strait Oil when examining and re-producing the current seismics.

Also, Range and Red Emperor undertook a 'Helium Survey' over their Georgian Blocks.
Taken from API's website (the company that undertook the study):

"In a review of more than 2600 US and international wildcat wells - all drilled after completion of geochemical or non-seismic hydrocarbon detection surveys- more than 80% of wells drilled on prospects associated with positive hydrocarbon anomalies resulted in commercial discoveries; and only 11% of wells drilled on prospects not associated with such anomalies resulted in discoveries."



In Puntland, in the mid 90's, American Oil Majors like Conoco, Amoco, Chevron and Phillips held concession rights to minerals in Somalia before force majeure was declared due to the out break of the civil war there. These companies obviously though there was enough profit in oil in the region. At that time in 1993, a price of a barrel of oil was $16.75 (Inflation adjusted for 2011: $25.28) - now a barrel of oil is close to $110 and projected to remain at current levels or higher for the foreseeable future.
Geologists have also stated that the hydrocarbon basins underneath Somalia / Puntland are of similar properties to that of Yemen, where to date I think approx. 5 billion barrels have been recovered from the ground.



As regards future movement of the shareprice, investing in Oil Exploration companies is a risky business but the rewards of success are very great.
Right now, RMP are fully funded for 2 Georgia drills and the First of 2 Puntland drill to be drilled this year.
Personally, I think it wouldn't be a bad idea to raise another $10-15m upon listing on the AIM for future drills. It will inevitably lead to some dilution but I think a larger cash balance would de-risk the company against a poor result in the first couple of wells.
Make no mistake, if RMP weren't to find oil in their first drill then the SP will fall quite a bit - to what level I don't know. But that's why getting in early and being patient in these types of companies is best.

neil.p.b

According to RUM, RMP own 20% of the whole georgia project not just the first two blocks. VERY significant. Have sold some RRL to buy RMP tonight. Now holding 2/3 RRL and 1/3 RMP.

Thargor

Hopefully I should wake up to 50k of these in my portfolio tomorrow morning, its been a hard slog but I think Ive finally got there, stupid An Post/AIB/NIB.

Congratulations to Noodles/Poodles on that supreme bitchslap he gave to most of the RUM board that was ganging up on him over that 20% aswell

neil.p.b

Did you put a limit on your buy order? Yeah i'm presuming they're the same person? In fairness, a lot of the members that were giving him stick over it did humbly admit to being wrong and apologised. All in all its great news for RMP holders.

Thargor

Yeah he's the same guy I asked that before, limit of 0.37 on them Ill up it next week if I have to but Im fairly confident Ill get it, we have a few weeks before the action starts it should dip one more time at least. Whats your average on them?

neil.p.b

I've got my limit at 36c. Current average is 32c, if my order goes through tonight (fully expect it to) my overall average will be 33.5c