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Rose Petroleum, the AIM-listed (LSE:ROSE) natural resources company, has provided a detailed operational update on the current activities taking place within both its oil and gas and mining divisions.
Overview:
· On-going drilling programmes in both oil and gas basins of the prospective Mancos and Paradox plays in Utah – current project resource base of 1.8 billion barrels of oil and 6.45 trillion cubic feet of gas (mean gross un-risked prospective recoverable resource)
· Highly competitive breakeven cost of below US$20 per barrel of oil equivalent due to excellent infrastructure and low entry cost, as well as low well costs relative to produced volumes of oil and gas
· Revenue generation from gas production following recent acquisition in the Cisco Dome field – updated Competent Person’s Report expected in Q1 2015
· Further revenues from commencement of additional gold-silver production in Mexico with added exploration upside from porphyry copper and molybdenum projects
· News flow in 2015 will include: drilling results; updated resource figures; and production updates
Matthew Idiens, CEO, commented:
“We continue to make excellent progress across our diverse multi-commodity portfolio. With regard to our oil and gas assets, our low breakeven costs of below US$20 per barrel of oil equivalent for both licence areas ensures that the fundamentals remain positive as we look to bring these assets into production in spite of the current low oil price environment.
“In tandem with the advances in the Mancos and Paradox projects, we have recently moved into the production phase at our additional gold/silver asset in Mexico which will generate cash flow for the business. Cash remains key, and, notwithstanding the challenging market conditions, we recently raised £3.5 million, which is being further supplemented by revenues from the Cisco Dome gas project and the sale of our interest in the Wate uranium project.
“The next few months will see high impact news flow with: drilling results; an updated CPR which is expected to add Proven Reserve estimates from our Cisco Dome Field to our already significant Resource Estimates; as well as production and exploration updates from our mining assets.
“Finally, we will be keeping a close eye on how market conditions develop and are looking to conserve cash and increase operational efficiencies as far as we can to ensure that we are optimally positioned to deliver on our strategy to create value for shareholders. I look forward to providing further updates across our portfolio in the coming weeks.”
Rose has a 75% working interest in over 245,000 gross acres in two oil producing basins in Grand and Emery Counties, Utah, the Paradox Basin and the adjacent Uinta Basin Mancos play. On-going activity is currently taking place in both basins.
