19th Apr 2018 17:58
LONDON (Alliance News) - Rose Petroleum PLC said on Thursday it has assembled a new operational team for the Paradox Basin in Utah, US, with the aim of drilling its first well later in the year.
The team has so far completed the subsurface assessment, well location selection and basic well design and engineering for the first proposed horizontal well, the GVU 29-1. The application for the permit to drill is well underway and is expected to be granted in the third quarter of 2018.
The team has also estimated that the total cost of the well will be in the range of USD7.0 million to USD8.0 million, below previous expectations of USD8.0 million to USD10.0 million. So far discussions with industry and financial partners for funding is in progress.
Rose Petroleum has to date identified 60 potential well locations on both the existing and new acreage within the area covered by 3D seismic data, and estimates that there is potentially unrisked resources of up to 38.0 million barrels of oil equivalent in the Cane Creek reservoir alone.
"I am delighted that we've been able to assemble such a capable operational team, with an impressive track record of success in the basin. Significant cost savings have already been identified in the well design and further savings are expected. We continue to make excellent progress on the ground and are preparing to drill our first appraisal well before the end of 2018, which will be a key milestone for Rose," said Chief Executive Officer Matthew Idiens.
Shares in Rose Petroleum closed up 23% at 3.50 pence on Thursday.
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