- Red Emperor Resources said it had signed a binding letter of intent to secure an option over an interest in a large offshore block, in shallow waters off the coast of Western Australia state.

The company said the option, signed with Pilot Energy and Key Petroleum, would allow it to acquire a 70% working interest in the North Perth Basin block, with the right to operate.

Red Emperor had agreed to fund the completion of an existing committed work programme up to a capped amount of A$150k.

The work included geological and geophysical studies required to be undertaken within the final year of the current permit term.

Following a favourable permit renewal, Red Emperor could acquire the 70% interest by paying the joint venture partners a combined A$500k.

Red Emperor would have until 15 business days after a permit approval decision to exercise the option.

A renewal decision was currently expected to be received in in the first quarter of 2020.

At 9:08am: [LON:RMP] Red Emperor Resources share price was +0.13p at 0.6p

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