RE: Update Q&A with Red Emperor MD Greg Bandyhttps://www.miningmaven.com/k2/companies/red-emperor-resources/red-emperor-resources-qa-with-md-greg-bandy/
Highlights
The operator is confident that they can flow oil from the 12 – 20m pay zone and as a result we hope to be able to announce to the market that we have a commercial discovery at Shabeel-1.
Comparatively, Shabeel North is unbroken and cleaner and to a large extent, de-risked. It looks like a better seal (broader & less faulted), which means it has the ability to trap a much larger reservoir. Shabeel North is down dip (up thrown) and closer to the center of the basin (the “boil” or the “kitchen” if you will) compared to Shabeel-1. Between Darin-1 (thin rocks, just out of the basin but oil bearing) and Shabeel-1, we’ve bracketed both margins and are now simply moving closer to the axis of the basin. We have got clastics, we’ve got sandstones, we’ve got trap...we really are quite hopeful about this well.
For Shabeel North, we will be able to test any Jesomma oil sands in the open hole as was originally planned. The drill program for Shabeel North is 45 – 60 days (inc. testing) and then we will move back to Shabeel-1 to test that zone.
We have over $20m in the bank as of today which means we are extremely well funded to complete the current two well program and beyond.