ASX

ANNOUNCEMENT

1 August 2014

WESTERN BLOCK UPDATE

Rampart Energy Ltd (ASX: RTD) announces that Operator Royale Energy (NASDAQ: ROYL) has terminated the contract with Kuukpic Drilling, for drilling of two exploration wells in the Western Block, North Slope Alaska, during the
2015 winter season.
In order to retain the rig a substantial deposit was required to be paid by Royale Energy, funded by Rampart Energy. The joint venture determined that it would not be prudent to proceed with such a significant financial commitment without a greater degree of certainty that funding of the drilling program can be achieved within the available timeframe.
Rampart Energy has initiated a Strategic Partnering Process to identify funding partners for the two well exploration program. In order to present the true potential of the opportunity to prospective industry and financial partners, and secure favorable commercial terms, further technical work is desirable. However, if a funding partner can be identified in the near term there is a possibility for reinstatement of the Kuukpic rig contract for drilling in 2015.
Rampart Energy is confident that a funding partner will be secured in order to fund the two well program commencing early 2016, having recently spent valuable time with Royale Energy's technical team in San Diego, California. Royale Energy has identified material prospectivity within a variety of different oil plays within the Western Block, within a very short period since processed
3D seismic data became available. Preliminary well locations have been identified, each of which offer the potential to target independent prospects at multiple levels, thereby greatly increasing the probability of exploration success.
Rampart Energy looks forward to working with Royale Energy to further progress the technical work, so that a compelling investment proposition can be presented to potential funding partners. Rampart Energy is in discussion with Royale Energy regarding the possible amendment of certain provisions of the Participation Agreement executed in May 2013, and will make a further announcement, in conjunction with Royale, once agreement has been reached.

Rampart Energy's Executive Chairman, Gavin Harper, commented: "While we are disappointed that we may not be able to achieve the Company's original schedule to drill the Western Block in early 2015, the Rampart team is greatly excited by the Western Block's potential. We look forward to working diligently with Operator Royale in order to secure a funding partner, albeit for the following winter drilling season if necessary." Enquiries

Company: Iain Smith, Executive Director, Tel: +61 412 638019
Australia: Ronn Bechler, Market Eye
Tel: +61 400 009 774, Email: ronn.bechler@marketeye.com.au
USA: Jay Morakis, M Group Strategic Communications
Tel: +1 212 266 0191, Email: jmorakis@mgroupsc .com

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