5 Aug 2014 07:00
Rose Petroleum plc (AIM: ROSE)
("Rose" or the "Company")
Utah Operations Update
Highlights
· Successful Mechanical Integrity Test (MIT) of Paradox well casing
· Rose finalising bids for 3-D seismic survey
· Key operations personnel being hired
Rose Petroleum (AIM: Rose), the AIM-listed natural resources company, is pleased to announce that it has successfully conducted a Mechanical Integrity Test (MIT) of the casing in its State 16-42 Paradox well located in Grand County, Utah.
The MIT consisted of pressurising the casing to 1010 psi for 22 minutes and then bleeding off the pressure on the wellhead. The test results were provided to the State of Utah Department of Oil, Gas and Mining (DOGM) and were deemed satisfactory by the DOGM officials to satisfy the necessary casing integrity in preparation for future well operations and production testing slated for later this year.
Furthermore, Rose is finalising bids on the Gunnison Valley Unit (Paradox) 3-D seismic survey and will begin the regulatory and permitting process imminently with the goal to begin acquiring seismic data in late Q3/early Q4 of this year. It is expected that while acquiring the 3-D data, the Company will begin testing the State 16-42 Paradox well and spud the first Mancos well. Additional specific updates for each of these operations will be forthcoming throughout the course of the coming months.
Rose is also in the final stages of completing the hiring of key operations personnel and is pleased with the calibre of people it has attracted. The notice periods for some of the team joining could lead to a relatively minor change in timings of planned operations, however recruiting the best qualified personnel is key to the Company's success. Further updates in regards to personnel will be issued when appropriate.
Group CEO Matthew Idiens commented: "With the MIT test completed and the in-house operations team taking shape, Rose is looking in good shape for the future. We look forward to updating the market further on our drilling programme and key personnel in the coming weeks."
For further information, please contact:
Rose Petroleum Plc +44 (0) 20 7225 4595 Matthew Idiens
Group 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 January 2014, the Company completed the acquisition of three licences in Germany, two licences in Baden-Württemberg covering approximately 635,000 acres (2,560 square kilometres) with each licence area represented to have at least four target pay zones, and the third licence covering 657,000 acres (2,640 square kilometres) located in the Weiden Basin (northeast Bavaria).
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 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.
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
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