RE: First drill23 Sep 2018 11:51
Not sure but Rose is now planning a three-well appraisal plan to assess the productivity of the naturally fractured reservoir and to test the predictive model of fracture locations. If the appraisal results are positive, a field development comprising up to 60 horizontal wells would be implemented.
Matthew Idiens, CEO, commented: "We are hugely encouraged by the reclassification of Contingent Resources within the 3D seismic acquisition area, reporting, net to Rose, a 2C Contingent Resource of 9.25 million barrels of oil and 18.50 Bscf of Gas and an unrisked pre-tax NPV10 of US$122 million. These metrics highlight the substantial scale and prospectivity of the Paradox project. The NPV estimate clearly demonstrates the significant upside potential compared to the Company's current valuation and this covers only a small portion of the total acreage position."
"This assessment very much justifies our appraisal plans, which will be the first combination of horizontal drilling steered by the 3D seismic data on Rose acreage. A similar approach has proven successful in the development of the Cane Creek Field analogue directly south of our acreage. We are working hard to evaluate the remaining Clastic 21 potential outside the 3D area and shallower prospective zones both within the 3D area and beyond, which represent further upside opportunities within Rose's existing acreage footprint."
"The farm-in process continues and is now supported by the CPR independently validating the geological and economic strength of the Project."
The previous CPR by Ryder Scott Company, reported in May 2014, covered all the Company's acreage at that time and included up to 15 separate reservoirs (clastics) and reported Unrisked Prospective (Recoverable) Hydrocarbon Resources on a Best Case (P50 equivalent) of:
· 966.37 MMBO (966 million barrels of oil) and
· 1,888.46 BCFG (1.88 trillion cubic feet of gas).
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