Rose Petroleum PLC BLM Approval for Permit to Drill GV 22-1 well (9563F)
November 01 2018 - 2:00AM
UK Regulatory
TIDMROSE
RNS Number : 9563F
Rose Petroleum PLC
01 November 2018
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
1 November 2018
Rose Petroleum plc ("Rose or the "Company")
BLM Approval of Application for Permit to Drill GV 22-1 well
Rose Petroleum plc (AIM: ROSE), the North America-focused oil
and gas company, is pleased to announce that the U.S. Bureau of
Land Management ("BLM") has approved the Application for Permit to
Drill ("APD") for the proposed GV 22-1 well within the Company's
Paradox acreage ("Paradox acreage") in Utah. The APD will be valid
for an initial period of two years.
The GV 22-1 well location is within the new leases acquired in
March 2018, within the area covered by the Company's 3D seismic
acquisition that was completed in December 2017, and adjoining the
existing leases already within the Gunnison Valley Unit.
The Company now plans to drill its first unit obligation well at
the GV 22-1 location as soon as possible, however, the Company has
agreed with the BLM to extend the boundary of the Gunnison Valley
Unit to include the new leases in that unit. The unit boundary
changes, which will allow the GV 22-1 to be the next obligation
well, involve an amount of administrative detail and are expected
to take approximately 45 days, assuming no unforeseen delays.
Once the boundary changes have been completed all permits
required from both the BLM and State of Utah will be in place for
operations to commence, subject to the operational stipulations of
the APD. Discussions regarding financing of the drilling programme
are ongoing and will be accelerated once these GVU boundary
amendments are finalised by the BLM.
The GV 22-1 will be a horizontal well which Rose's management
consider has a potential Estimated Ultimate Recovery ("EUR") of
894,000 barrels of oil equivalent ("BOE"), consistent with the
Gaffney Cline Competent Person's report. The potential of the GV
22-1 well is supported by its close analogy to highly productive
structures (>1mmboe EUR) within the nearby Cane Creek Field (12
miles south) and locally by its close proximity to the producing
28-11 well (approx. 1 mile). This well produces from the porous and
permeable fracture network within Clastic 21 and can be tied to the
proposed 22-1 location within the 3D seismic data set. The 28-11 is
a vertical well that was drilled by Delta Petroleum in 2006 without
the benefit of 3D seismic. It has produced 141,000 barrels of oil
equivalent ("BOE"), and represents a key piece of evidence for the
presence of hydrocarbons and of a greater fracture network across
the area covered by the 3D seismic. These factors give the Board a
high degree of confidence in the potential of the GV 22-1 well, and
it was for these reasons that the Company decided to prioritise the
GV 22-1 location as Rose's first well.
Further updates will be provided as soon as appropriate on both
the inclusion of the additional leases within the GVU and on the
proposed timing for the spudding of the Company's first Paradox
well.
Matthew Idiens, CEO, commented: "We are delighted to have
received this final permit for the GV 22-1 well. Having acquired a
significant footprint in the Basin, permitted and shot the 3D
seismic, processed and interpreted the data with fantastic results,
we are now finally close to delivering on our key corporate
objective of spudding our first Paradox well."
Contacts:
Tel: +44 (0)20
Rose Petroleum plc 7225 4595
Matthew Idiens (CEO) Tel: +44 (0)20
Chris Eadie (CFO) 7225 4599
Allenby Capital Limited - AIM Nominated Adviser Tel: +44 (0)20
Jeremy Porter / James Reeve / Liz Kirchner 3328 5656
Tel: +44 (0)131
Cantor Fitzgerald Europe - Financial Adviser 257 4634 Tel: +44
and Joint Broker (0)20 7894 7686
Nick Tulloch
David Porter
Turner Pope Investments - Joint Broker
Andy Thacker Tel: +44 (0)20
3621 4120
Media enquiries:
Allerton Communications Tel: +44 (0) 20 3633 1730
Peter Curtain peter.curtain@allertoncomms.co.uk
Notes to editors
Rose Petroleum plc (http://rosepetroleum.com) is a North
America-focused oil and gas company whose primary asset is
approximately 80,000 net acres in the prolific oil and gas
producing Paradox Basin in Utah, U.S.A., where it is earning into a
75% working interest. Using high-quality data gathered in a 3D
seismic survey completed in October 2017, the Company has
identified drilling locations in naturally fractured areas of the
Paradox Formation with the intention of commencing a drilling
programme in H2 2018.
On 22 June 2018, Rose announced a Competent Person's Report
("CPR") and Maiden Contingent Resource by Gaffney Cline &
Associates ("GCA") on the Rose acreage covered by the 3D seismic,
approximately 17,250 acres of the 80,000 acres held. The CPR
estimated a 2C Contingent Resource, net to Rose, of 9.25 MMBbl of
oil and 18.50 Bscf of gas, and an unrisked pre-tax Net Present
Value (NPV10) on the 2C Resources, net to Rose, of US$122 million.
The CPR focused solely on one single reservoir - the Cane Creek
reservoir (the "CCR" or "Clastic 21") - of the multiple prospective
reservoirs within the Paradox Formation.
The Company's established management is supported by an expert
technical team with extensive experience of the basin, where
current operations nearby have proven successful, with significant
initial production rates and low decline rates, offering strong
economics even in the present oil price environment.
The Company's strategy is to grow both organically and through
acquisition, identifying additional hydrocarbon assets,
conventional or unconventional, that would benefit from the
Company's fast-acting, entrepreneurial approach.
Rose Petroleum has been quoted on AIM since June 2004.
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END
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