Rose Petroleum PLC Operations Update (6463J)
December 06 2018 - 2:00AM
UK Regulatory
TIDMROSE
RNS Number : 6463J
Rose Petroleum PLC
06 December 2018
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
6 December 2018
Rose Petroleum plc
("Rose", the "Company" or the "Group")
Operations Update
Further to the operational update announced on 1 November 2018,
Rose Petroleum plc (AIM: ROSE), the AIM quoted natural resources
business, is pleased to provide an update on operations for the
Gunnison Valley Unit (GVU) in the Paradox Basin, Utah, U.S.A.
Operations Update
The Company has now agreed an updated operational plan with the
Utah Bureau of Land Management ("BLM"), and the benefits of this
agreed plan are that the current GVU boundary will now be extended
to include the acreage acquired in April 2018, in which the GVU
22-1 well is located. The GVU 22-1 well is considered a top ranked
well location, based on the 3D seismic interpretation and its
proximity to the producing 28-11 well.
Following on from the agreed plan, Rose and its partner Rockies
Standard Oil Company ("RSOC") have been in discussions with various
drilling companies regarding the securing of an appropriate rig so
that the GVU 22-1 can be spudded at the earliest opportunity. At
the current time, it appears that a suitable rig will now be
available in Q1 2019, in line with the now agreed operational plan.
The Company is targeting securing the necessary drill programme
funding ahead of then.
The Company has engaged Schlumberger to review the seismic
attribute analysis, further validate and edit the seismic
interpretation, and model the structural geometry, the
distributions and orientations of natural fractures based on a
geomechanical analysis within the GVU 22-1 structure. This work is
expected to be completed shortly. The modelling efforts will
provide expected fracture orientations and distributions within the
constraints of the available data in the GVU 22-1 location and
within the wider 3D seismic area. In addition, Schlumberger and
Rose will utilise the completed work to refine the well path design
to optimise the fracture networks to maximise the performance of
the well. The fracture systems encountered will be a major factor
in the commercial success of the well.
Matthew Idiens, CEO, commented: "We appreciate the pragmatic
approach taken by the BLM and are pleased that we have been able to
jointly agree a revised operations plan that is for the overall
benefit of all parties.
I am pleased that we now have a formal plan that allows us to
drill our highest-ranked target first, which is key to the
development of the project. Having clarity over operations and the
BLM approval enables us to refocus on the well financing and
farm-in process.
We look forward to announcing the conclusions of the
Schlumberger work when possible and look forward to working with
them on the GVU 22-1 well path optimisation."
Contacts:
Tel: +44 (0)20
Rose Petroleum plc 7225 4595
Matthew Idiens (CEO) Tel: +44 (0)20
Chris Eadie (CFO) 7225 4599
Allenby Capital Limited - AIM Nominated Adviser Tel: +44 (0)20
Jeremy Porter / James Reeve / Liz Kirchner 3328 5656
Tel: +44 (0)131
Cantor Fitzgerald Europe - Financial Adviser 257 4634 Tel: +44
and Joint Broker (0)20 7894 7686
Nick Tulloch
David Porter
Turner Pope Investments - Joint Broker
Andy Thacker Tel: +44 (0)20
3621 4120
Media enquiries:
Allerton Communications Tel: +44 (0) 20 3633 1730
Peter Curtain peter.curtain@allertoncomms.co.uk
Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD,
Technical Adviser to the board of Rose Petroleum plc, who meets the
criteria of a qualified person under the AIM Note for Mining and
Oil & Gas Companies - June 2009, has reviewed and approved the
technical information contained within this announcement.
Notes to editors
Rose Petroleum plc (http://rosepetroleum.com) is a North
America-focused oil and gas company whose primary asset is
approximately 80,000 net acres in the prolific oil and gas
producing Paradox Basin in Utah, U.S.A., where it is earning into a
75% working interest. Using high-quality data gathered in a 3D
seismic survey completed in October 2017, the Company has
identified drilling locations in naturally fractured areas of the
Paradox Formation and has chosen the first well location and it is
now permitted to drill and plans to commence the drilling programme
and the first well as soon as possible, subject to rig
availability, stipulations of the leases and financing. All of
which should be achievable within the next few months.
On 22 June 2018, Rose announced a Competent Person's Report
("CPR") and Maiden Contingent Resource by Gaffney Cline &
Associates ("GCA") on the Rose acreage covered by the 3D seismic,
approximately 17,250 acres of the 80,000 acres held. The CPR
estimated a 2C Contingent Resource, net to Rose, of 9.25 MMBbl of
oil and 18.50 Bscf of gas, and an unrisked pre-tax Net Present
Value (NPV10) on the 2C Resources, net to Rose, of US$122 million.
The CPR focused solely on one single reservoir - the Cane Creek
reservoir (the "CCR" or "Clastic 21") - of the multiple prospective
reservoirs within the Paradox Formation.
The Company's established management is supported by an expert
technical team with extensive experience of the basin, where
current operations nearby have proven successful, with significant
initial production rates and low decline rates, offering strong
economics even in the present oil price environment.
The Company's strategy is to grow both organically and through
acquisition, identifying additional hydrocarbon assets,
conventional or unconventional, that would benefit from the
Company's fast-acting, entrepreneurial approach.
Rose Petroleum has been quoted on AIM since June 2004.
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END
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