4th Apr 2018 12:43
Rose took a 75% interest in the acreage, which is 3,320 acres gross, buying the land at
The company paid for the acquisition using its existing cash resources.
Rose said the new acreage is within the area covered by a recent 3D seismic survey for which it now has all structural interpretation, with the company saying it is "excited" by the new area's potential having identified "multiple highly attractive" geological structures and possible well locations.
Based on previous resource reports by consultants Ryder Scott Co prepared for Rose, it said, there could be 5.5 million barrels of oil equivalent on the new acreage.
Chief Executive Matthew Idiens commented: "We are delighted that we've been able to acquire this new acreage, which we believe to be highly desirable. The fact that we have already completed the 3D seismic survey on this acreage is of particular significance as we have already determined its significant prospectivity. Multiple drill site locations have already been identified on the acreage and we believe the acreage has the potential to produce several million barrels of oil.
He added: "We have known about the auction for this acreage for some time and we are thrilled to have secured the acreage for such a reasonable price. We were concerned that the very strong initial results from the seismic survey on our adjacent existing acreage might push up the price of this acreage significantly."
Shares in Rose were down 2.1% on Wednesday at
Related Shares:
Rosebank