Increased Acerage & Operational Update

RNS Number : 1496G

Rose Petroleum PLC

02 March 2015

 



Rose Petroleum plc ("Rose" or the "Company")

Oil & Gas Division - increased acreage in Paradox and Uinta Basins

Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce that it has increased its land position within both the Paradox and Uinta Basins.  

The Company has acquired a 75% working interest in an additional 1,597.8 gross acres (1,198.35 net acres) in the Uinta Basin and an additional 3,344.62 gross acres (2,508.47 net acres) in the Paradox Basin (the "Additional Acreage").  This acquisition, which was achieved at a very competitive cost, brings Rose's overall gross acreage to 251,841.17 acres (188,880.88 net acres) thereby consolidating and strengthening Rose's position in its primary operational region.

Rose has acquired the Additional Acreage by exercising its right to participate in acquisitions within the 'Area of Interest' under its agreement with Rockies Standard Oil Company ("RSOC") and the acquisition cost contributes to the earn-in terms in each basin. RSOC acquired the Additional Acreage through both the School and Institutional Trust Lands Administration's ("SITLA") January 2015 auctions in the Uinta Basin and a purchase of lease lands in the Paradox Basin.  The Uinta leases have a five year term and the Paradox Leases have a term of over three years remaining.

Matthew Idiens, Group CEO, commented:

"We are pleased to have increased our overall acreage to over 250,000 gross acres covering both the Uinta and Paradox basins and consider it to be a prudent move given our forthcoming completion programme. In this regard, we anticipate moving the rig on site to commence the completion of the State 1-34 conventional target in the coming weeks and look forward to updating the market once the side wall core results become available."

**ENDS**

For further information please visit www.rosepetroleum.com or contact:

Matthew Idiens (Group CEO)	Rose Petroleum plc	Tel: [phone]
John Blair (CEO)	Rose Petroleum (US) LLC	Tel:  [phone]
Jeremy Porter	Allenby Capital	Tel: [phone]
Alex Price	Allenby Capital	Tel: [phone]
Elisabeth Cowell	St Brides Partners Ltd	Tel: [phone]
Lottie Brocklehurst	St Brides Partners Ltd	Tel: [phone]

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, milling and porphyry copper exploration 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 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. Un-risked Prospective (Recoverable) Hydrocarbon Resources on a Mean Case basis for the collective total Mancos Shale and Paradox Formation combined was 1,825.07 MMBO (million barrels of oil) and 6,447.87 BCFG (billion cubic feet of 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, and the completion of a further £3.5 million fundraise was announced on 5 December 2014.

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 11,000.02 gross / 8,250.02 net acres of highly prospective Mancos acreage, a gas compression station and gas processing plant as well as 17 producing wells and 35 shut-in wells.

In December 2014, Rose spudded its first well in the Uinta Basin taking core samples from both the Mancos shale and also a conventional target. Completion of the conventional target is planned for early Q2 2015, whilst the whole core taken within the Mancos is analysed for optimisation of the Well stimulation programme for a horizontal well in the Mancos shale.

Rose 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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