LONDON (Alliance News) - Rose Petroleum Friday said its Rose Petroleum (Utah) LLC subsidiary has completed the acquisition of assets from privately-owned oil and gas company SEP Cisco Dome LLC.
Rose Utah has acquired 100% of the assets of SEP, which include approximately 76 miles of gathering lines, a gas compression station, gas processing plant and a tap into a 26 inch natural gas pipeline for USD1.5 million in cash.
The company has also acquired 52 wells, of which 17 are producing approximately 14 million cubic feet of gas and 110 barrels of oil and natural gas liquids per month, generating USD40,000 income per month for the company.
The assets are located within the Uinta Basin, adjoining Rose Utah's Mancos project, in Utah, US, where the company already owns the rights to approximately 118,000 gross acres.
The company has "acquired what is a strategic asset to Rose at a favourable price from SEP who viewed it as non-core to their own operations," said Chief Executive Matthew Idiens.
Rose considers that there are significant opportunities to increase production on these newly acquired leases from the conventional reservoirs in the form of work overs, recompletions, development drilling and improvements in production operations, it said in a statement.
"This acquisition gives Rose Utah significant leverage within this area of operations as it now owns the only midstream gas gathering system and gas processing plant in that portion of the area. It also now owns the rights to a tap into the main gas transportation line in the area," said Idriens.
In a separate statement, Rose said it has appointed Mark Lewis as Senior Well Site Supervisor with immediate effect, working from the centre of the company's US oil and gas operations in Denver. Lewis has 35 years experience in the industry and specialises in high pressure, high temperature wells.
Rose shares were up 0.7% at 3.45 pence early Friday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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