17 Dec 2014 07:00
Rose Petroleum plc (AIM: ROSE)
("Rose" or the "Company")
Initiation of Completion Work on State 16-42 Paradox Well
Change of Broker
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 begun the initial operations for completion of the State 16-42 Paradox well in the Gunnison Valley Federal Unit in Grand County, Utah. Rose has pressure tested the casing to 5,000 psi, switched the wellhead from shut-in to completion mode, and has run slick-line down the casing to confirm the top of the plugged back depth of the well and that the well is free of any obstructions.
Perforating guns have been ordered from Halliburton and will be on location by the end of today (17 December) and it is anticipated that the first zone of interest will be perforated by 20 December. Piceance Well Service's work over rig will then be moved on location to run 2-7/8" production tubing to approximately 9,258 feet and the first zone will then be flow tested. This is also scheduled to happen by 20 December. This will be the first of several zones that will ultimately be evaluated in this well.
Rose owns nearly 80,000 gross acres in the Paradox Basin and over 245,000 acres collectively between the Paradox and the adjacent Uinta Basin Mancos play.
John Blair, Director of Oil & Gas, commented: "The initiation of completion operations of Rose's State 16-42 Paradox well is the first major step in establishing operations on Rose's Paradox assets. Other than production, the importance of the vertical completion in the 16-42 well is to test the potential pay zones for future drilling of new wells, which will be located using our 3D seismic data. When completed, this will enable horizontal legs to be drilled and completed and therefore demonstrating the full potential of the basin. As this is being completed as a vertical well, versus a horizontal completion, Rose does not anticipate the production rates to be on the same order of magnitude as a horizontal well but will nonetheless be a significant first step in the process of developing our Paradox assets."
History of the State 16-42 Well
The well was drilled to a total depth of 10,176 feet Measured Depth (10,172 feet True Vertical Depth) by Fidelity Exploration and Production in 2009 ("Fidelity"), without the use of 3D seismic and prior to Fidelity's understanding of the importance of 3D seismic in locating wells in areas of natural fractures. Rose purchased the well, which was shut-in, as part of its acquisition in March 2014.
Change of Broker
Following the completion of the recent successful fund raise, the Company is pleased to announce that Allenby Capital Limited is now the sole broker to Rose and remains its Nominated Adviser.
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