16th May 2014 10:24
LONDON (Alliance News) - Rose Petroleum PLC Friday said it has increased its acreage in the shale gas prospective western Paradox Block in Utah by 35,000 acres giving it the opportunity to become a "significant player in the US oil and gas industry".
The AIM-listed natural resources company said the additional acreage is part of an ongoing deal by which the company can acquire 75% of certain oil, gas and hydrocarbon leases in the region, bringing its total acreage to 230,000 acres.
The company said the new leases are for 10 years and were supposed to be a part of its original agreement for leases in the region but were withheld due to an accounting error by the US Bureau of Land Management which has now been solved.
The Utah project targets two prolific unconventional shale resource plays, being the Mancos Shale in the Uinta Basin and Paradox Clastics in the Paradox Basin.
"With the total acreage now at 230,000 acres, covering both the Mancos and Paradox formations, Rose has the opportunity to become a significant player in the US oil and gas industry," Chief Executive Matthew Idiens said in a statement.
Rose Petroleum shares were up 11% to 0.860 pence, putting it in the top-ten AIM ALL-Share risers on Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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