24 Nov 2014 07:00
Rose Petroleum plc (AIM: ROSE)
("Rose" or the "Company")
Approval of state unit and signature of operating agreement
Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce that its wholly owned subsidiary, Rose Petroleum (Utah) LLC, has received and signed a unit operating agreement for its Cisco State Unit from the State of Utah (the "Operating Agreement"). The Cisco State Unit, which covers an area of 10,888.95 acres, is held by Rose as lease land and had originally been scheduled to expire. However, the unitisation and the Operating Agreement now enable Rose to retain the lands through the commencement of drilling provided that Rose drills one well within 6 months of completion of the previous well. Rose's first Mancos Well, Rose 1-34 State, is located within the Unit and is planned to be spudded in December.
The Rose 1-34 State Mancos well location has already been staked (surveyed) and the on-site inspection has been conducted by the State of Utah. Rose is therefore able to commence construction of the drilling pad and road into the drill location and anticipates completing this over the coming weeks to ensure drilling commences in mid-December 2014 subject to final approval of the drilling permit which is expected imminently.
John Blair, Director of Oil & Gas, commented: "The approval of the Cisco State Unit Operating Agreement by the State of Utah ensures the acreage is retained and subject to the final approval, that drilling on Rose's first Mancos well will commence December 2014 in line with our operational schedule. This will be the first step in the transformation of Rose's Utah assets from Undeveloped Resources to Proven Producing Assets and marks an exciting point in the Group's evolution."
For further information, please contact:
Rose Petroleum Plc +44 (0) 20 3697 1209
Matthew Idiens
CEO
Allenby Capital (Nominated Adviser & Broker) +44 (0) 20 3328 5656Jeremy Porter / Alex Price
Pareto Securities (Joint Broker) +44 (0) 207 786 4370
Guy Wilkes / Will Slack
Lionsgate Communications (Public Relations) +44 (0) 20 3697 1209 Jonathan Charles / Lynn Carratt
About Rose Petroleum
Rose Petroleum plc (AIM Ticker: ROSE) is focusing on developing its oil & gas portfolio, while seeking to create value from its existing mining portfolio.
In March 2014, Rose signed a farm-in agreement under which its newly formed subsidiary, Rose Petroleum (Utah) LLC, can earn 75% of certain oil, gas and hydrocarbon leases covering approximately 230,000 net acres in Grand and Emery Counties, Utah, USA, within the Paradox and Uinta basins.
In May 2014, Rose published the results of its reserve report prepared by Ryder Scott Company on the Mancos and Paradox Oil & Gas Projects. Unrisked Prospective (Recoverable) Hydrocarbon Resources on a Best Case (P50 equivalent) basis for the collective total Mancos Shale and Paradox Formation combined was 1,452.86 MMBO (million barrels of oil) and 4,791.85 BCFG (billion cubic feet of gas).
In June 2014, the Company successfully raised £6.5m by way of an oversubscribed conditional placing and subscription to develop the Mancos and Paradox assets in Eastern Utah.
In October 2014, Rose acquired 100% of the assets of a privately owned SEP - Cisco Dome, LLC and various other associated entities for US$1.5 million in cash. The acquired assets included 11,000.02 gross / 8,250.02 net acres of highly prospective Mancos acreage, a gas compression station and gas processing plant as well as 17 producing wells and 35 shut-in wells.
Management intends to build on these projects to establish a balanced international asset portfolio. For further information please consult the Company's website: www.rosepetroleum.com
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