8 Dec 2014 07:00
Rose Petroleum plc (AIM: ROSE)
("Rose" or the "Company")
Approval to commence work at site of first Mancos well
Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce that its wholly owned subsidiary, Rose Petroleum (Utah) LLC, has received written approval from the State of Utah Department of Oil, Gas and Mining to commence the construction of the drilling pad and road into the 1-34 State well in the Cisco State Unit. Work is scheduled to begin on 8 December 2014. Rose has contracted Hanson Construction to carry out the work. Hanson is a local contractor that has carried out extensive work in the area for a number of other operators.
The 1-34 State well will be Rose's first Mancos well and initiates Rose's development of its Mancos leasehold which consists of approximately 133,000 gross acres. Drilling operations are scheduled to begin later this month.
John Blair, Director of Oil & Gas, commented: "The approval to begin road and site construction at the location of the 1-34 State well marks the first phase of operations in our Mancos development program. Getting the Cisco State Unit formed and our first Mancos well operations underway less than nine months from Rose's initial acquisition of its Utah assets is a tremendous credit to our operations team and we are eager to commence work. We look forward to keeping all stakeholders updated on our future progress at the site."
For further information, please contact:
Rose Petroleum Plc +44 (0) 20 3697 1209
Matthew Idiens, CEO
Allenby Capital (Nominated Adviser & Joint Broker) +44 (0) 20 3328 5656
Jeremy Porter / Alex Price
Pareto Securities (Joint Broker) +44 (0) 20 7786 4370
Will Slack
Lionsgate Communications (Public Relations) +44 (0) 20 3697 1209
Jonathan Charles / Lynn Carratt
About Rose Petroleum
Rose Petroleum plc (AIM Ticker: ROSE) is focusing on developing its oil & gas portfolio, while seeking to create value from its existing mining portfolio.
In March 2014, Rose signed a farm-in agreement under which its newly formed subsidiary, Rose Petroleum (Utah) LLC, can earn 75% of certain oil, gas and hydrocarbon leases covering approximately 230,000 net acres in Grand and Emery Counties, Utah, USA, within the Paradox and Uinta basins.
In May 2014, Rose published the results of its reserve report prepared by Ryder Scott Company on the Mancos and Paradox Oil & Gas Projects. Unrisked Prospective (Recoverable) Hydrocarbon Resources on a Best Case (P50 equivalent) basis for the collective total Mancos Shale and Paradox Formation combined was 1,452.86 MMBO (million barrels of oil) and 4,791.85 BCFG (billion cubic feet of gas).
In June 2014, the Company successfully raised £6.5m by way of an oversubscribed conditional placing and subscription to develop the Mancos and Paradox assets in Eastern Utah, and the completion of a further £3.5m fundraise was announced on 5 December 2014.
In October 2014, Rose acquired 100% of the assets of a privately owned SEP - Cisco Dome, LLC and various other associated entities for US$1.5 million in cash. The acquired assets included 11,000.02 gross / 8,250.02 net acres of highly prospective Mancos acreage, a gas compression station and gas processing plant as well as 17 producing wells and 35 shut-in wells.
Management intends to build on these projects to establish a balanced international asset portfolio. For further information please consult the Company's website: www.rosepetroleum.com