(RMP) Red Emperor Resources

The HRN v their Partners 'argument' has arisen from the wording of the HRN RNS. AOI ultimately call the tune and made a big play of their 'elephant hunting' with their potential significant finds in Kenya & Somalia. The RNS from HRN gave a contrary impression to AOI's glossy presentation seemingly playing hard man to AOI's soft man.

HRN would seem to be uninterested in their sp at this time and cannot be said to have worded the RNS to support it. This RNS was not transparent or obviously informative so motives are being questioned, particularly after their sp was seemingly ramped in a timely manner by AOI's presentation.

Who is being honest and transparent here? PL & GB obviously feel let down. Will S1 flow? Will the next drill find a decent and possibly thicker band of oil? HRN are carrying on with intent. We can't know everything behind decisions made by the lead company but the news appears to be selective especially after their owner's claims! We have to wait to find out but .... time will tell.
GLA

Your statement below, Guesstimate maybe true...

"...RMP placed shares at 32p because it's standard oil industry practice to raise funds in the run-up to TD. The SP now is the reason why. Far from being committed to the drill, IIs involved in the placing probably sold their allocation before they even reached their Euroclear accounts, bought out by ever increasingly over-leveraged PIs..."

however the way Fox Davis, PL and GB rushed out damage limitation statements suggests to me that this was not the case.

I don't think they would have bothered if II's had made their money.

Regards
2H's

UT I've seen video clips of the old drill holes from the 80's just left, some didn't look like concreted holes though it looked more like piling rig casings hanging a foot out of the ground all rusted, remember they didn't want to leave in the first place and wanted back in asap, those holes should still be good apart from a clean out,

D.

HRN are the operator YES, are they transparent?! NO! They tried to keep a lid on the drill all the way... We had Oil shows in Jessoma, yet they kept quite... If it wasn't for the leaks and the Gov wanting to spill the beams they would have said nothing... 

It is clear RRL & RMP have different agenda then HRN....even AOI the owners of 51% of HRN were referring to the discovery as ( apparently Significant) yet HRN RNS had no wording as such! They didn't even refer to it as a discovery ( nada) i wouldnt call that a nicely worded RNS?!  

Shabeel-N is drilled there not because a 50m pilot hole was drilled already! Or because it was close to S-1... It was already planned to be drilled there...it takes weeks to get the site ready for a drill... the slight change for Shabeel-N is that TD has changed, the type of drill and casing has changed to help the flow test! (8 1/2" open hole casing) the Jessoma is the main target now...... The plan was to test Shabeel-1 first but because the test equipment required will take time to reach the site instead of being idle for 4/6 weeks they went ahead with moving the rig and get drilling... Good time management

RMP placing was from market demand not the way around that is why RMP were reluctant to move lower then 32p and the sp at the time... RMP already had £6m in the bank ( with Shabeel-N costing £2m) they still had the option to run into Shabeel-N with £4m cash left, instead an opportunity came to life and they made a good call on it.... 

No one can say for certain what is going on behind the scene!!  HRN are fully funded, have an AGM coming and will set themselves some Option on the cheap... No wonder they couldn't care less about the state of the sp right now... Especially with a good Co backing them up such as AOI... RRL and RMP don't have such luxury... That is why we can see the different approach from each... And there are probably many many other reasons we don't know about...

It's a big puzzle and Without all pieces of info it is not possible to draw any conclusions yet... The Puntland story has only begin... And begin with an oil discovery ...  The FI didn't have such a luck with DES having the Liz duster... It was all a game over then... Until came Sea Lion... Shabeel-N could well be our Sahara Lion ... Time will tell... 

Bel

Good post guestimate

None taken GM

Kind regards

BG76

The Somaliland government has said it will honor, until they expire, the existing contracts foreign companies signed with the Barre regime that are in their territory

http://www.energy-pedia.com/countryprofile.aspx?country=206

When do these contracts expire and are they still in force due to the contracts being signed by an unrecognised government....

http://www.skyscrapercity.com/showthread.php?t=1331263

Great use of "ameliorate" and "equivocal". Thanks. The boards can be both educational and...erm...educational.

FMJacket posted:

"I think there is bad blood between HRN and (RRL, RMP). Arguing is going on between them. The fiasco of the latest RNS really shows this. PL and GB have been embarrassed by all of this and have tried their very best to put things right."

I think what happened was that HRN, who are operators, and the oil professionals here, put out a perfectly straightforward and plain-speaking industry standard RNS that caused a dramatic and unfortunately negative re-rating of the Puntland story from an over-hyped "lake" of "5bn barrels" to a few 100mn, if it flows at all. PL (and to a lesser extent Bandy) spent far too much time discussing marginally price-sensitive information directly with PIs eager to mis-interpret in the most positive fashion what they were being told. Up until the last few days I think they genuinely believed in success and were as surprised as anyone to hit the basement rock 10 days early. They then, having got so involved with PI emails flying about, saw a need to try and ameliorate the damage by putting the best possible spin on the basic raw data that HRN put out. By doing this and issuing semi-conflicting RNSs they are actually adding to the mess.

In future I will only pay attention to HRN RNSs. I would suggest everyone else do the same, but I see the constant requests to PL for information and/or clarification show no signs of slowing.

Shab-N is being drilled where it is because the pilot hole is already drilled and they're running out of time to start a new deeper hole somewhere fresh, not because of its proximity to Shab-1.

RMP placed shares at 32p because it's standard oil industry practice to raise funds in the run-up to TD. The SP now is the reason why. Far from being committed to the drill, IIs involved in the placing probably sold their allocation before they even reached their Euroclear accounts, bought out by ever increasingly over-leveraged PIs.

RMP exercised its option to participate in Shab-N not because of huge confidence in the well, but because without it the company is pretty much valueless, given the situation in Georgia.

All these conclusions seem pretty clear to me, although they seem to be being avoided by more than a few on this board. I still hold RMP shares, and I'm cautiously optimistic about Shab-N. It might be that the 10-20m payzone is thicker further north. It might be possible that Shab 1 flows much better than could be expected. And it is, at the end of it all, difficult to imagine that there's nothing down there. I'm still here because my holding has effectively cost me nothing, and I'm curious to see how it all pans out. But I'll be waiting for HRN to tell me, not PL emails to Blackgold (no offence BG) or even, at this stage, RMP RNSs which appear, in contrast, poorly worded, equivocal and unprofessional. Sorry if that seems harsh.

Laters bud

"Does anyone know IF horn petroleum plan to use the exsisting wells that conoco drilled Nogol 1 and Kalis 1" - blackgold76

I would be VERY surprised if the same holes are used. If I had been sent packing by force majeure, you can bet your life I'd have covered my tracks to make sure some tiddler of an oily (no offense intended PL & GB) didn't come along afterwards and finish what I'd set out to do and wasted millions on. We're not talking a 50 foot wide gaping vertical shaft here, but a small hole that would have been readily plugged and tidied up. I doubt there is any trace of the precise location, except on Conoco's private documents.

Maybe I'm wrong. Perhaps that's exactly what they want them to do; use their holes so they can later go to the courts and claim prior ownership.

I think it's highly unlikely.

BG
Cheers. Let's see what tomorrow brings. The penny is dropping (again). Up up up. Lol

Night mate

FMJ

I have done lots of research and keep going over notes to see if anything has changed and at present nothing has changed.
We have only had that poor RNS on thursday -- that left a lot to be desired and had me thinking of question why the did that -- pointless really trying to think of why they did it -- thats the past and we now move onwards and upwards.

The only thing i will say is if your prepared to stay until the results of S1,SN1 and Nugaal then i would stay for the end when the chance of RMP being bought out starts--

On this board i havent put anyone on ignore. lol as much as i hate them "derampers" they do offer a balanced view sometimes -

They have oil and they have told us so, just a pitty they didnt do that in the thursday RNS and that would have saved this drop.

Thank you FMJ

BG76

Chris
It does look good doesn't. Holding firm and will switch off for a week or so I think. Trading for me goes wrong mostly so will just sit on my hands. I have researched this to death. Waiting for this since before RMP listed on aim. A few more weeks is a small price now for those results we all want. PL and GB are seemingly transparent but HRN are the issue here. PL and GB doing it there own way but suspect a bit of conflict going on here with HRN / AOi. We will never know I suppose. So just a few weeks and up we go. Good luck Chris - ps don't think we need it ( I hope) lol

I saw that email shortly after it was posted

At the time, it was encouraging as it was amongst the very first references from anyone connected to this drill which actually gave some recoverable numbers

However, Landaus Q&A followed the very next day in which he stated 'a successful flow test could result in 70 to 130mm barrels of recoverable oil'

So whilst it's nice to see things like that in emails, as ever, it's only the official news which this share will live or die by. We saw that to stunning effect last week

All the best

FMJ, only 'you' know why you invested here.. don't let the voices of bitter people change your reasoning.

A lot of people showing huge paper losses here but they are only paper losses. I haven't sold any RRL/RMP. This is just a little set back.

Too true CT

Thanks Chris, I missed that on WS. Sandra seems genuine to me so let's hope that PL is being straight with his answer....

Be brave when others are fearful .... remember that saying buddy

BG not too bad mate. Glad for your dogged positivity. It does help a lot. Still a bit confused as most are at the mo. The evidence is there to be seen. CT's post was just another clue that this is looking good. They have shot us down in mid flight with that RNS. The board is very quiet because of this. Think at bottom and coming back now though. Will hold till SN and S1 results. I hope PL answers I think his emails may be a lot less at the moment due to that RNS - none of us left - lol (joke). Changing to buy from hold now. Pay day soon and will get some more.

Good luck - keep us posted on that e-mail !

FMJ

I have emailed Greg and Peter,

See if i get a reply----

Hey FMJ, How are you this evening.

Your right i think i will --- Will let you know if i get a reply dont hold your breath as most of my questions have been of a very direct approach and i dont think they went down to well with him, anyway i will let you know if i get a reply

BG76

Hi BG

Good question for PL or GB me thinks

FMJ

Correction - sorry chnage TD with "Spud"

Does anyone know IF horn petroleum plan to use the exsisting wells that conoco drilled "Nogol 1 and Kalis 1"

If so then it will just be a case of running the drill down to clean the well -- in other words a very quick drill

http://majiyahan.com/?p=334

NUGAAL BASIN. Several wells had been drilled in the basin including Nugaal – 1 Kalis – 1
and possibly Sinujif – 1. Nogal-1 is shown as an oil show and Kailis-1 possibly not tested at that stage.
3 The most compelling information on a potentially large source of oil reserves came from a series of A4 sheets and a
large summary sheet presumably prepared for a presentation to senior Conoco management to justify the drilling of a
well at a cost of US $8.3 million on a Prospect delineated as 28-B in the Nogal Basin.
This large ‘presentation’ sheet prepared for the 28-B
prospect included in summary and graphical form information
that had been analysed and determined by Conoco
geologists from their exploration efforts. It shows that they
had very clearly identified stratagraphic traps in the older
formations. In particular, they identified a possible primary
reservoir in Upper Jurassic Gabredarre formation and a
potential secondary reservoir in the Upper Creteceous
Jesomma sandstone formation.
The sheet clearly identified the proposed well location and
the data also included the geoseismic sections, seismic line
sections, prognosed stratigraphy, source kitchen, burial and
maturation history, and potential seal trap and reservoir
estimates.
In particular, the reservoir estimates indicated that the
targeted structures were very significant in size and were
comparable to sandstones in the Alif oil field discovered in
Yemen by Hunt Oil Corp.

Pjsaxon

Others have talked about this subject. The way news has been released is just so bizarre!
All three companies release an RNS that pans the SP. Then 2 of them bend over backwards to put things right on the following 2 trading days. This is very very strange - why?

If they did buy shares now it would look very bad for them. They have by their own hand caused the SP to drop massively. Are they really that naive to have done this to allow them or associates to buy in at these low prices. Surely they would have taken advice about the wording of the RNS. They have agreed this via three BODS. It was no mistake that is for sure. They would have known were this would lead to surely. The information was held back initially and then within 24 hours it was released. So very very odd!

Could HRN have insisted on the first release and PL and GB agreed reluctantly in the hope the damage would not have been that bad (a bad call) The additional market hit was just not factored in I don't think. PL and GB have taken this into their own hands in the last few days. GB in particular would have been hauled over the coals by Fox-Davies. This is not what they expected. The damage has been done though. The hot money has gone. It will return but many have been over extended and because of their circumstances have effectively been wiped out. We take the risk we know that but we have been lead to this. The evidence was very convincing from all the official routes and e-mails. Those e-mails were real. I personally got 2 myself.

I think there is bad blood between HRN and (RRL, RMP). Arguing is going on between them. The fiasco of the latest RNS really shows this. PL and GB have been embarrassed by all of this and have tried their very best to put things right.

For us that can afford to hang on we can recover as things look good. The SP is exposed for the next few weeks to the vultures and will drift. Approaching TD for SN it will rally a bit. How much who can say. After TD more wondering of the SP I think. Hold though and will surely get another chance to exit and regain our losses. However there are so many nameless people burnt horribly by this mess. People that over extended themself and now just have to bail to make ends meet. They take this risk themselves -yes but that does not make it right.

If they do buy shares it would be good for us. Doing so this week would push us to spud and prevent a drop in SP. I hope they do but suspect they may be scared of Fsa investigations.

I'm holding to see what happens. I'm very optimistic this will end well. If it does go badly PL , GB would be nothing better than crooks. I personally think they are not. We shall see.

GLA

Make of it what you will...

http://www.screencast.com/users/sandralenormandic/folders/Default/media/c825ce0f-0222-4eab-9e01-36690420c2fe

October I believe...

Think you got your Timingwrong as am a ramper BUY BUY BUY

Generally in 3's, like you and the other 2 big derampers that appeared.

GLA holders
TIE

They do come in 3s dont they.

Once Shabeel North has been drilled and tested, where do we go from there regarding Puntland? Obviously a lot depends on the results from the Shabeels.
I forget, from the PSA, the cut off date that the two wells in Nuugal Valley have to be drilled by, anyone any ideas?
Also if say for instance the two Shabeels prove to be non commercial, do the partners still commence drilling in Nuugal ?
Is the existing rig moving on from Shabeel North to the Nuugal valley, makes sense whilst it is over there.

Cheers

Andy.

Taken from the RNS:-

After reviewing these logs and in light of the
significant discovery made by the Joint Venture in the Jesomma sands of
Shabeel-1, the board has no hesitation in participating in Shabeel North and
has advised Africa Oil Corp. accordingly.

For me, the sentence :- in light of the significant discovery made by the Joint Venture in the Jesomma sands, can only be interpreted as a strike.

Thx for replying , if you read the last paragraph it suggests to me in my own opinion that there is a good chance more than not being otherwise why put it in that's all I was trying to get across I don't post much and never ramp a share all to there own.

Hope so

I don't recall this being covered.

The Denovo CPR states, for the Jesomma section, chance of Discovery = 24.9%, Chance of Development = 90%.

GB has stated that this is a "discovery", therefore I read this as 90% chance of the oil flowing?

Have I read this correctly?

MM

Yep. Until testing is done nobody knows what they have!

gsm said " can't see it not being commercial at all with the Rns this morning the bod would be hung and would anybody trust them again "

They have made no reference to commerciality why would they be hung

Close price 15.50

Spread 15.25 - 15.75

+4.20%

Is it correct on here getting 14p on hbos bought in a bit early today .I'll take a chance can't see it not being commercial at all with the Rns this morning the bod would be hung and would anybody trust them again .thx to anyone who replies.