31st Mar 2015 07:52
LONDON (Alliance News) - Rose Petroleum PLC on Tuesday said the initial results from the Mancos Shale play in Utah have reiterated the strong potential of the prospect, although it said the conventional intervals at the site were not deemed commercially viable.
Rose said the initial core analysis conducted by Weatherford indicated good natural fracturing at Mancos, along with organic content of between 2% and 4.5%, with strong residual and moveable hydrocarbon volumes and good storage capacity.
Six further Mancos wells are being prepared for permitting to drill and a drilling programme will start on the wells once all contractors and vendors are in place, Rose said.
But it said the deeper conventional intervals at Mancos were not deemed commercially viable.
"The unconventional Mancos shale play has always been our prime target and where the significant potential of our large acreage position lies. Initial analytical results on the Mancos shale core are encouraging and therefore we are focusing our efforts and resources on this opportunity," said Matthew Idiens, chief executive of Rose.
"While we hoped that the conventional target could have delivered us quick, albeit small, production, it was always seen as a bonus opportunity. It is important to emphasize that the outcome of the conventional well in no way takes anything away from the potential of our core focus, the Mancos shale," Idiens added.
Rose shares were down 19% to 1.42 pence on Tuesday, one of the worst performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Rosebank