Acquisition of additional acreage in Utah & TVR

RNS Number : 8732V

Rose Petroleum PLC

03 November 2014

 



Rose Petroleum plc (AIM: ROSE)

("Rose" or the "Company")

Acquisition of additional acreage in Eastern Utah

Total voting rights

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 acquired an additional 4,004.83 gross acres from the State of Utah and private owners within its Mancos development area as well as 657.83 gross acres in its Gunnison Valley Unit in the Paradox development area, Eastern Utah.  Total cost paid for the leases was $188,024.09 representing an average cost per acre of $40.33.

Rose's independent consultant, Ryder Scott Company ("RSC"), is currently in the process of updating the resource estimates for the Mancos following Rose's recent Cisco acquisition and this additional acreage will now be included as part of that.  Rose will announce the details of this update once it has been completed.

In May 2014, RSC stated that the 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).

Group CEO Matthew Idiens commented: "We are pleased to be able to consolidate our land position further in the Unita basin ahead of spudding our first Mancos well, which I am happy to report remains on track for ahead of year end. The initial well location has been selected and permitting is well underway."

Total voting rights

The Company announces that its issued share capital as at the date of this announcement consists of 1,310,185,133 ordinary shares of 0.1p each with one voting right per share. The Company does not hold any shares in treasury. Therefore the total number of Ordinary Shares and voting rights in the Company is 1,310,185,133.

The above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

For further information, please contact:

Rose Petroleum Plc                                                                                                                           [phone]

Matthew Idiens                                                                                                                             

CEO

Allenby Capital (Nominated Adviser & Broker)                                                                     [phone]

Jeremy Porter / Alex Price

Pareto Securities (Joint Broker)                                                                                                     [phone]

Guy Wilkes / Will Slack

Lionsgate Communications (Public Relations)                                                                       [phone]

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 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 Utah.

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 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

 

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