18 Dec 2014 07:00
Rose Petroleum plc (AIM: ROSE)
("Rose" or the "Company")
Grant of Drilling Permit for State 1-34 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 been granted the Drilling Permit from the State of Utah to enable operations to commence at its State 1-34 Mancos well in the Uinta Basin.
Last week Rose was given approval to build the drilling pad and road, which it has now completed. Beeman Drilling Services, of Moab, Utah, will be moving its rig on location and commencing operations prior to the end of the year.
Rose plans to drill to a total vertical depth of 3,200 feet, enabling it to test both the Mancos shale as well as conventional reservoirs below the Mancos, which have been identified with 2D seismic. Rose will take two whole cores as well as several rotary side wall cores to determine specific rock properties to assist Rose in designing the horizontal well and the fracture stimulation treatment of the Mancos.
Matthew Idiens, CEO, commented: "I am pleased to be able to announce the granting of the drilling permit and operations can now commence in earnest. We will mobilise the drill rig imminently and I look forward to updating the market further as operations develop. Rose has had a transformational year, despite the recent volatility of the oil market. With our large Prospective Recoverable Resources of both oil and gas and low break-even cost, we are now entering a very exciting period and have an opportunity to create significant value for shareholders. "
For further information, please contact:
Rose Petroleum Plc +44 (0) 20 7225 4595
Matthew Idiens, CEO
Allenby Capital (Nominated Adviser & Broker) +44 (0) 20 3328 5656 Jeremy Porter / Alex Price
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