The Perth Basin has been hot in recent months thanks to the success of Warrego Energy (ASX:WGO) and Strike Energy (ASX:STX).

Even neighbouring companies such as Pilot Energy (ASX:PGY) have surged from the hype.

Now Red Emperor Resources (ASX:RMP) is seeking to explore the area for gas – although unlike Warrego and Strike it will be drilling offshore.

Today it told shareholders it signed a letter of intent with Pilot Energy as well as Key Petroleum (ASX:KEY) to secure an option to acquire a 70 per cent interest in an offshore exploration permit.

Red Emperor will provide the remaining funding needed for the current permit term – which expires in February 2020.

After this date, the trio will seek renewal of the permit and Red Emperor will have an exclusive option to acquire a 70 per cent interest and the right to operate it.

The company also has interests in the Phillipines and Alaska and the latter caused headaches earlier in the year when it did not work out. The stock collapsed 82 per cent then and has been flat ever since.

But today’s news sent the stock surging as high as 90 per cent in early trading.

 

 

“We believe the WA-481-P block is predominantly oil prone, relatively shallow and represents the western side of a large structural trend that onshore has seen recent, material discoveries,” Red Emperor managing director Greg Bandy said.

Read More:

Perth Basin spotlight: Who’s pursuing the next big oil and gas hit? 

 

In other ASX energy news today:

Carnarvon Petroleum (ASX:CVN) told shareholders Santos (ASX:STO), its business partner on the Dorado project, released initial concept select information for liquids development at Dorado. It wants to begin front end engineering and designing next year while Carnarvon is talking to banks to finance its share. Managing director Adrian Cook said the information showed there was potential for “incredibly strong” flow rates.

State Gas (ASX:GAS) expects the Serocold-1 well at its Reid’s Dome gas project to spud this weekend with drilling and testing to be complete in the following fortnight. The news came only a week after the company won a legal case against Dome Petroleum which asserted it had a right to a 20 per cent stake in the project. It is targeting gas from this project to hit the market in 2021.

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