11th Jan 2019 10:43
LONDON (Alliance News) - Rose Petroleum PLC said Friday it acquired 75% stake in nearly 2,000 acres adjoining the company's Gunnison Valley Unit area located in the US state of Utah.
Rose and Rockies Standard Oil Co - its joint venture partner - bought the additional 1,920 gross acres for USD35,000 through the December 2018 Bureau of Land Management Utah lease sale.
The firm explained that 1,600 acres of this new land is covered by its existing 3D seismic data it acquired in late 2017.
Rose estimates the potential 2C or "best" contingent resources at the new acreage has 1.2 million barrels of oil equivalent within Clastic 21. With the purchase price, this gives what it called an "exceptionally low" acquisition cost per net barrels of oil equivalent of USD0.03.
This is in addition to the 12.3 million 2C barrels of oil equivalent reported at its Gunnison Valley Unit site.
"Following on from the very encouraging independent technical studies completed by both [Gaffney Cline & Associates] and Schlumberger, this acquisition stands to add further high quality acreage at an exceptionally low entry cost," Rose Chief Executive Officer Matthew Idiens said.
"Rose estimates an NPV10 of approximately USD12 million for the new acreage, making this an excellent value add ahead of the company's proposed drilling programme," Idiens added. "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."
Shares in Rose Petroleum were 3.3% lower at 2.66 pence on Friday.
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