Red Emperor Resources (RMP.asx)

Thargor · 27-08-2012 12:33PM

This is going to get nasty over the next few days I think. Thanks feck for USOP anyway is all I can say, I was all out here at one stage when I was topping up USOP and GKP but bought back 100k at 4.9, ouch.

Not over yet though, just got to hold them now.

What do you think HRN is going to do over the next year? Cant really see them abandoning Puntland after all the work thats gone in...

alanceltic · 27-08-2012 01:42PM

To be honest not really a surprise but it would have been a nice surprise to get something out of it, hope beyone hope really. To be honest I am more disgruntled with the politics which have been played by all 3 (Horn/Range/RMP), the sham that was a strike on the first drill (working petroleum system, seal, etc etc) and then the bullsh*t RNS on the second drill. We were repeatedly spun lies from the minute the first drill hit the sod, PL kept mentioning we had a discovery on the first drill, wasnt it convenient that the testing equipment was AWOL for such a long time so they could hide behind the fact that it wasnt commercial, all highly orchestrated in my opinion and I expected more from Horn.

I invested in RRL as I liked the risk/reward and I expect to be down about 50% on my initial investment tomorrow which I would be confident can be recouped at some point in the next 12-18 months but as soon as this bounces I will be taking my cash elsewhere as the board simply can not be trusted. Too many distractions, too many vested interests and too much in corporate/management/directors fees for my likeing. I was willing to overlook this for the cream that was Puntland, its a short-medium term hold until the intrinsic value is represented in the SP and then its adios as there is too many sharks in this pond for my likeing.

liammur · 27-08-2012 04:01PM

Grecco wrote: »

Second drill is a duster, hard luck guys

In fairness, the minute they were suspended the writing was on the wall. Even that act alone will have people rushing for the exits.

neil.p.b · 27-08-2012 05:12PM

Pity about the result. All is not lost but will be a waiting game now until Nugal is drilled.

Looking like there will be a fantastic entry price on RRL tomorrow circa 4.26.

Dude240502 · 28-08-2012 01:29AM

neil.p.b wrote: »

Pity about the result. All is not lost but will be a waiting game now until Nugal is drilled.

Looking like there will be a fantastic entry price on RRL tomorrow circa 4.26.

Do I assume you mean in the long term, do you expect much of a rise in the near future?

AP_MAN · 28-08-2012 09:13AM

amazing RRL in blue...

neil.p.b wrote: »

Pity about the result. All is not lost but will be a waiting game now until Nugal is drilled.

Looking like there will be a fantastic entry price on RRL tomorrow circa 4.26.

WEST · 28-08-2012 01:36PM

I'm thinking of taking a punt on RMP based on the below update, does anyone know if €16m is enough to drill Nugal or have an opinion on when this drill could start?

"Finally, Red Emperor wishes to advise the market of its strong cash position
which, after this drilling campaign, will be in excess of $16m. Whilst this not
only represents over $0.06 per share (GBP0.04), it demonstrates that the Company
is fully funded to cover any seismic program undertaken and at least two more
wells in either Dharoor or Nugaal. It must also be made clear that while the
next PSC will extend for another 3 years, it is the intention of the JV to
progress work as soon as possible and practical in an endeavour to unlock the
value it believes to exist in Puntland.

This strong cash position also leaves Red Emperor with the ability to assess
and potentially commit to other projects WITHOUT ANY DILUTION to its share
capital"

neil.p.b · 28-08-2012 06:23PM

Unless Nugal is drilled in the short term RMP will be raising again, no question about that.

Grecco · 28-08-2012 07:03PM

I agree with Neil they will have to raise funds but I think they will have to do it regardless of when Nugaal is drilled. Am I right in saying that they cant borrow any money either as they have no tangible assets or is the Puntland acreage classed as one???

neil.p.b · 28-08-2012 07:31PM

They'd have no hope of getting a loan, they'll have to do a placement. I agree with you that they will have to raise regardless of Nugal, but if Nugal is drilled soon they will not necessarily have to raise before it.

WEST · 28-08-2012 08:32PM

Neil/Grecco, contrary to the RMP update I take it that this placement will result in a share price drop due to dilution?

Cute Hoor · 28-08-2012 08:51PM

neil.p.b wrote: »

Looking like there will be a fantastic entry price on RRL tomorrow circa 4.26.

Good call Neil, you could have bought in at 4.26 this morning and sold for a 20% profit before 9:00am.

Can anybody explain to me what's happening here, pretty disastrous news from Puntland and yet the shares are up 5% on the day on triple the normal volume, makes no sense to me.

Grecco · 28-08-2012 10:16PM

WEST wrote: »

Neil/Grecco, contrary to the RMP update I take it that this placement will result in a share price drop due to dilution?

In this case as the share price is on the floor a lot of new shares will have to be issued to raise funds so the price will drop. On the other hand if Nugaal is drilled first and its a success then the share price will have risen significantly so less shares would have to be issued to raise funds so then the price drop would not be so bad

Grecco · 28-08-2012 10:23PM

Oh I forgot the real sting in the tail here is
If Nugaal is a duster then any holders will be completely wiped out from the share price drop from its current price then a huge share dilution.
There is no more get out of jail cards here so be careful

WEST · 28-08-2012 11:02PM

Grecco wrote: »

Oh I forgot the real sting in the tail here is
If Nugaal is a duster then any holders will be completely wiped out from the share price drop from its current price then a huge share dilution.
There is no more get out of jail cards here so be careful

If I do decide to buy RMP, I'll will not wait for any Nugaal result based on what happened to the last 2 drils. Plus for all we know it could be 3 years before Nugaal is drilled.

neil.p.b · 29-08-2012 04:23AM

Hi all, just a heads up that i've had it confirmed the rig will be released. I can't see a well within the next year. Will now be selling my HRN in the morning.

Cute Hoor wrote: »

Good call Neil, you could have bought in at 4.26 this morning and sold for a 20% profit before 9:00am.

Can anybody explain to me what's happening here, pretty disastrous news from Puntland and yet the shares are up 5% on the day on triple the normal volume, makes no sense to me.

Same reason AOI was up, there was no value attributed to the share price at the time and other asset value created a floor - bad news was completely priced in. There would have been a lot of RMP holders switching back and the uncertainty of puntland removed from range had a positive effect. Nice double bottom on Range, expect a steady increase in share price over the coming months.

turbobaby · 29-08-2012 05:59AM

I am not sure why people are saying an RMP placing is necessary. If we can believe what's in the RNS, they are fully cashed up!

"Finally, Red Emperor wishes to advise the market of its strong cash position which, after this drilling campaign, will be in excess of $16m. Whilst this not only represents over $0.06 per share (GBP0.04), it demonstrates that the Company is fully funded to cover any seismic program undertaken and at least two more wells in either Dharoor or Nugaal. It must also be made clear that while the next PSC will extend for another 3 years, it is the intention of the JV to progress work as soon as possible and practical in an endeavour to unlock the value it believes to exist in Puntland.

This strong cash position also leaves Red Emperor with the ability to assess and potentially commit to other projects without any dilution to its share capital"

Neil, interesting that you've heard the drill will be leaving Somalia. Not good.

turbobaby · 29-08-2012 09:30AM

Neil, after reading that you received confirmation of the drill leaving Somalia, I thought we would see continued selling this morning, but the sp has been pretty strong. Up 10% as I type.

Will you still be selling HRN today?

AP_MAN · 29-08-2012 10:28AM

RMP is flat now, looks like it's pure manipulation

interesting to see what will be the close price !!

turbobaby wrote: »

Neil, after reading that you received confirmation of the drill leaving Somalia, I thought we would see continued selling this morning, but the sp has been pretty strong. Up 10% as I type.

Will you still be selling HRN today?

Thargor · 29-08-2012 11:19AM

Sold all my RRL there this morning, 20% profit on what I bought back a couple of weeks ago after a 20% profit on the ones Id been holding for 2 years that I sold to buy USOP when it was at £2 and GKP at £1.80, so not bad going for a double duster RNS and a messy end to the whole Puntland saga, I usually do absolutely everything possible to maximize my losses in these kinds situations!

Bad news about the drill packing up, dumped the rest of my HRN on Monday at .33 anyway, 60% loss on what was 50% up at one stage, might reenter RRL at some point but I doubt it now.

neil.p.b · 29-08-2012 03:28PM

turbobaby wrote: »

I am not sure why people are saying an RMP placing is necessary. If we can believe what's in the RNS, they are fully cashed up!

"Finally, Red Emperor wishes to advise the market of its strong cash position which, after this drilling campaign, will be in excess of $16m. Whilst this not only represents over $0.06 per share (GBP0.04), it demonstrates that the Company is fully funded to cover any seismic program undertaken and at least two more wells in either Dharoor or Nugaal. It must also be made clear that while the next PSC will extend for another 3 years, it is the intention of the JV to progress work as soon as possible and practical in an endeavour to unlock the value it believes to exist in Puntland.

This strong cash position also leaves Red Emperor with the ability to assess and potentially commit to other projects without any dilution to its share capital"

Neil, interesting that you've heard the drill will be leaving Somalia. Not good.

We can't. Now that the rig is leaving the cost of future mobilisation, the cost of a well and seismics on top of RMPs overheads $16m is not enough. Even if it was the company would never leave itself in a position of being near a $0 balance. They will, without question, have to raise before the next drill. The bit i found interesting in the RNS was the mention of committing to other projects - huge hint there!! Await farm-in news.

turbobaby wrote: »

Neil, after reading that you received confirmation of the drill leaving Somalia, I thought we would see continued selling this morning, but the sp has been pretty strong. Up 10% as I type.

Will you still be selling HRN today?

There will be a lot more traders on RMP than HRN. I'm undecided on what i'm doing with my HRN now, they are now capped at cash position so little downside, but at the same time i can't see anything that is going to create any buying pressure to push the share price up.

AP_MAN wrote: »

RMP is flat now, looks like it's pure manipulation

interesting to see what will be the close price !!

It's not manipulation, just traders.

Thargor · 29-08-2012 04:45PM

Neil after todays and yesterdays action do you see RRL rising in a big way or just hovering around 6-7p like it did for a long time?

AP_MAN · 29-08-2012 04:53PM

closed @ 4.8, so, the down trend continues.. and HRN down 6.5% already trading at 28c, do not see any legs until some news about Nuggal.

AP_MAN wrote: »

RMP is flat now, looks like it's pure manipulation

interesting to see what will be the close price !!

neil.p.b · 29-08-2012 11:14PM

Thargor wrote: »

Neil after todays and yesterdays action do you see RRL rising in a big way or just hovering around 6-7p like it did for a long time?

Long term uptrend but in a slow gradual manner as apposed to traditional 200-300% rises in a few weeks. Unless a herrera ever spuds and strikes! I know this seems strange but Punty on the back burner really is good for range. It puts the emphasis on Trindad which is an unbelievable asset, it's just the BOD letting the company down, it's why i'd be hesitant investing in it again. Though at these prices it may be where my HRN are going.

turbobaby · 30-08-2012 09:42AM

Neil, just want to say thanks for the heads up about the rig. Without you saying I would still be holding RMP and I'm now happy that I got out on the spike yesterday.

That whole 12-20m net pay bullshi't has left an extremely sour taste in my mouth!

AP_MAN · 30-08-2012 10:44AM

Me too, thanks Neil

turbobaby wrote: »

Neil, just want to say thanks for the heads up about the rig. Without you saying I would still be holding RMP and I'm now happy that I got out on the spike yesterday.

That whole 12-20m net pay bullshi't has left an extremely sour taste in my mouth!

Grecco · 02-09-2012 10:58AM

neil.p.b wrote: »

Hi all, just a heads up that i've had it confirmed the rig will be released.

Neil was the Rig released ?? I cant see any information anywhere to state this, was it in an RNS??
Something doesn't seem right to me, would they not need the rig to plug the wells? Also there was a lot of buying pressure on L2 this friday. Taking a cold look at HRN 28c seems a very low share price for 60% of that Puntland acreage

neil.p.b · 02-09-2012 04:10PM

Email directly from horn telling me it was leaving the country. Whether that is the truth or not who knows.

Grecco · 02-09-2012 04:26PM

neil.p.b wrote: »

Email directly from horn telling me it was leaving the country. Whether that is the truth or not who knows.

If they said it then it must be the truth.

turbobaby · 02-09-2012 07:10PM

Grecco wrote: »

If they said it then it must be the truth.

They told us they had 12-20m net of hydrocarbons too.

Red Emperor Resources (RMP.asx)

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