Red Emperor Resources will acquire a 20% interest in two oil and gas blocks in Georgia from Range Resources and Strait Oil & Gas.
The two blocks, VIa and VIb, cover a contiguous area of seven billion square metres and were subject to significant exploration during the Soviet era.
Under the terms of the agreement Red Emperor will pay 40% of the costs for the first two wells and estimates that the first well will cost $6m-7m on a dry-hole basis.
In March 2010 Range and Strait completed 410km of 2D seismic studies across the two blocks under phase II of the production sharing contract, confirming 68 individual drillable multi-stacked structures.
