Red Emperor on the march in Alaska following approval of drill permit
Alaskan oil explorer, Red Emperor Resources NL (ASX|AIM:RMP), has received a permit to drill its Winx-1 exploration well in Alaska.
Full approval, without comment, was given by the Alaska Oil and Gas Conservation Commission (AOGCC) on January 16, paving the way for Red Emperor to mobilise the drill rig in early February, with spudding to occur on schedule mid-late February.
The cashed up Red Emperor acquired some of the most prospective oil and gas holdings on Alaska’s renowned North Slope and is testing a potential company-making 400-million-barrel target. It has entered into definitive agreements with consortium partners, 88 Energy (ASX:88E) and Otto Energy (ASX:OEL), to participate in the drilling of a highly prospective Nanushuk oil trend exploration well on the Alaska North Slope.
Red Emperor is on track to complete construction of the approximately 18 kilometre ice road required for drill rig mobilisation with 50% already done. Construction of the ice pad, from which the Nordic Rig#3 will drill the Winx-1 well, will follow.
Winx is a 3D seismic defined conventional oil prospect located in Alaska’s Nanushuk play fairway. It has a gross mean unrisked prospective resource of 400 million barrels (126MMbbls net to Red Emperor) and is adjacent to the Horseshoe 1/1A discovery well drilled by the Armstrong/Repsol JV in 2017.
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 is well-placed in the region
The oil renaissance on the North Slope is being led by some of the world’s biggest energy companies. Prudhoe Bay and Kuparuk River are still producing, having pumped out over 15 billion barrels of oil since 1977, but it is recent discoveries made by the likes of Armstrong, Repsol and ConocoPhillips (NYSE:COP) that have Red Emperor feeling confident.
Even moreso after news that the first exploration/appraisal well of the season, Pikka-B, has successfully encountered hydrocarbons in the Nanushuk formation with Oil Search (ASX:OSH) describing the results as “very encouraging”.
The following map illustrates Red Emperor’s position in the region in relation to major players on the Nanshuk Fairway.
The connection between Red Emperor and Oil Search goes deeper. Oil Search’s US$850 million acquisition of nearby acreage includes one of the largest conventional oil discoveries in the last 30 years. The play could be as big as 3 billion barrels and a good portion of that oil lies immediately adjacent to RMP’s blocks. RMP is targeting the same sands and formation as this discovery, less than 3 miles away.
Oil Search has also mapped two further Nanushuk trends abutting the southern boundary of RMP’s blocks and one to the east and is planning further exploration.
RMP has been on a roll, up 57% since December 20 and currently at 7.2 cents.