7th Jan 2019 09:56
LONDON (Alliance News) - Rose Petroleum PLC shares spiked Monday after the oil company said recent work carried out at Paradox Basin in Utah, US confirmed it own work carried out at the asset.
Shares in Rose Petroleum were up 15% at 2.87 pence each.
The study, carried out by US oilfield services company Schlumberger Ltd, showed the proposed plans for well GVU22-1 are situated "optimally to capture the fold and fault related fractures".
Rose Petroleum said the study also described the fractures as "more intensely developed" across the fold.
"This study corroborates our internal work and is consistent with the work performed by Gaffney Cline & Associates for the competent persons report. It reinforces the assessment of the Clastic 21 reservoir as a naturally fractured reservoir and illustrates the value of drilling the 22-1 well," said Chief Executive Officer Matthew Idiens.
Rose Petroleum said the study suggests the seismic attributes previously evaluated reflect the "potential fracture networks". This should be used in combination with further geomechanical modelling if the company is to select an area for the well with a "higher probability of stronger fracture intensity".
Idiens added: "This well has been designed to assess the commercial viability of the Clastic 21 reservoir within the Gunnison Valley Unit area, and to test the potential for 90 day initial production rates of up to 1,600 barrels of oil equivalent per day as seen at the Cane Creek Field, south of the Gunnison Valley Unit acreage.
"We look forward to working with Schlumberger to integrate these results as we further refine the GVU22-1 well trajectory."
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