Red Emperor Resources (ASX:RMP, AIM:RMP) recently revealed that Joint Venture partner and Operator of Block SC55, Otto Energy (ASX:OEL), has executed a binding contract with Maersk Drilling.
The contract will secure the Maersk Venturer ultra-deepwater drill ship to drill the Hawkeye-1 exploration well.
Drilling will be between 17 July and 15 August 2015.
The cost of the well will be US$30 to US$35 million, with Red Emperor’s well-cost exposure capped at US$5.625 million.
SC55 is located in the southwest Palawan Basin and covers an area of 9,880 square kilometres.
It is a deep-water block in the middle of a proven regional oil and gas fairway that extends from the productive offshore Borneo region in the southwest to the offshore Philippine production assets northwest of Palawan.
The halt will last until the opening of trade on Monday 29th June 2015, or earlier if an announcement is made to the market.
