Red Emperor Resources NL's first of two exploration wells to be drilled in Georgia this year has spudded with drilling now under way.

Red Emperor's joint venture partner Range Resources Limited along with operator, Strait Oil and Gas have announced that the Mukhiani 1 well in Georgia spudded yesterday. Mukhiani 1 is expected to take approximately 55 days to drill and is targeting the Vani 3 prospect with a mean estimate of undiscovered oil in place of 115 million barrels (with 23m bbls attributable to Red Emperor's 20% interest).

Red Emperor's director Greg Bandy commented: "This is a significant milestone for Red Emperor as it is our maiden well and the first of 3 - 4 high impact exploration wells expected to be drilled on the Company's projects this year. After being admitted to AIM last month we are delighted to be able to provide the market with significant news flow so soon after listing."

The drilling operations will run 24 hours with a team of between 40-50 personnel and is expected to take approximately 45-55 days with a target depth of circa 3,500m.

The geochemical helium survey undertaken by JV partner, Range Resources confirmed the suitability of the first drill location with oil exploration and development prospectivity complementing the earlier seismic work completed on the target.

Following the successful completion of the Mukhiani 1 well, the rig will then move on to spud the second exploration well as part of the two well highly prospective drilling program in Georgia.

The Company will provide updates on a regular basis as to the progress of the drilling of the Mukhiani well.

Tags: Red Emperor