TIDMROSE
RNS Number : 8131M
Rose Petroleum PLC
11 January 2019
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.
11 January 2019
Rose Petroleum plc
("Rose", the "Company" or the "Group")
Acquisition of additional acreage in Paradox Basin
Rose Petroleum plc (AIM: ROSE), the AIM quoted natural resources
business, is pleased to announce that the Company and Rockies
Standard Oil Company ("RSOC"), its joint venture partner have
successfully participated in the December 2018 Bureau of Land
Management Utah lease sale. This resulted in the Company acquiring
a 75% working interest in an additional 1,920 gross acres (1,260
net acres) (the "New Acreage") immediately adjoining its Gunnison
Valley Unit ("GVU") acreage in the Paradox Basin, Utah, U.S.A.
The majority of the New Acreage, 1,600 of the total 1,920 gross
acres, is covered by the existing 3D seismic data that the Company
acquired in late 2017. This acreage purchase completes a targeted
lease acquisition programme driven by the 3D seismic interpretation
that has resulted in the capture of multiple high-ranked well
locations in addition to those found within the initial GVU lease
position.
Utilising a similar methodology to that of the Gaffney Cline
& Associates ("GCA") Competent Person's Report (dated 30 April
2018), Rose estimates that the New Acreage has potential 2C
Contingent Resources (net to Rose) of 1.2mmboe (million barrels of
oil equivalent), within Clastic 21. This is in addition to the
existing Clastic 21, GVU net 2C Contingent Resources estimate of
12.33 mmboe which was valued at a pre-tax NPV10 of US$122.4m, by
GCA in 2018.
The New Acreage was acquired at a cost of $35,000 and an
exceptionally low acquisition cost/net boe of US$0.03/boe.
Matthew Idiens, CEO, commented: "Following on from the very
encouraging independent technical studies completed by both GCA and
Schlumberger, this acquisition stands to add further high quality
acreage at an exceptionally low entry cost. Rose estimates an NPV10
of approximately US$12m for the New Acreage, making this an
excellent value add ahead of the Company's proposed drilling
programme. I now believe that Rose has fully utilised its unique 3D
dataset to build a high potential acreage position and to
significantly de-risk the initial drilling locations. We are now
focusing wholeheartedly on the main objective of financing the
drilling programme."
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
Cantor Fitzgerald Europe - Financial Adviser Tel: +44 (0)131
and Joint Broker 257 4634 Tel: +44
Nick Tulloch (0)20 7894 7686
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
Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD,
Technical Adviser to the board of Rose Petroleum plc, who meets the
criteria of a qualified person under the AIM Note for Mining and
Oil & Gas Companies - June 2009, has reviewed and approved the
technical information contained within this announcement.
Glossary
1C Low Estimate of Contingent Resources
2C Best Estimate of Contingent Resources
3C High Estimate of Contingent Resources
CONTINGENT RESOURCES
Those quantities of petroleum estimated, as of a given date, to
be potentially recoverable from known accumulations by application
of development projects, but which are not currently considered to
be commercially recoverable due to one or more contingencies.
Contingent Resources may include, for example, projects for
which there are currently no viable markets, or where commercial
recovery is dependent on technology under development, or where
evaluation of the accumulation is insufficient to clearly assess
commerciality. Contingent Resources are further categorized in
accordance with the level of certainty associated with the
estimates and may be sub-classified based on project maturity
and/or characterized by their economic status.
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 and has chosen the first well location and it is
now permitted to drill and plans to commence the drilling programme
and the first well as soon as possible, subject to rig
availability, stipulations of the leases and financing. All of
which should be achievable within the next few months.
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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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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