Schlumberger Study Results

RNS Number : 2953M

Rose Petroleum PLC

07 January 2019

 

7 January 2019

Rose Petroleum plc

("Rose", the "Company" or the "Group")

Schlumberger Study Results

Further to the operations update announced on 6 December 2018, Rose Petroleum plc (AIM: ROSE), the AIM quoted natural resources business, is pleased to provide an update on operations for the Gunnison Valley Unit (GVU) in the Paradox Basin, Utah, U.S.A.

Rose is encouraged to report that the fracture characterisation study undertaken by Schlumberger has now been completed. In the detailed analysis of the proposed well GVU22-1, the models of the combined fracture sets developed in the study show that the well is situated optimally to capture the fold and fault related fractures. The study also states that it is expected that both fault and fold related fracture sets are viable from the geomechanical modeling.

The results describe that fractures are more intensely developed across the fold axes and as expected, are not uniformly distributed across the field area, which strongly validates the use of 3D seismic in the Basin. The strongest fracture development is along the WNW-ESE folds and at the intersection with those folds oriented NW-SE.

The study further suggests that the seismic attributes evaluated are likely to reflect potential fracture networks and they should be used in combination with the geomechanical modeling to select areas with a higher probability of stronger fracture intensity to assist with well location selection in the future. The planned well location is also consistent with stronger amplitudes from the attribute mapping, which may correlate to fracture corridors.

Matthew Idiens, CEO, commented: "This study corroborates our internal work and is consistent with the work performed by Gaffney Cline & Associates for the Competent Persons Report, announced on the 22^nd June 2018. It reinforces the assessment of the Clastic 21 reservoir as a naturally fractured reservoir and illustrates the value of drilling the 22-1 well. This well has been designed to assess the commercial viability of the Clastic 21 reservoir within the GVU area, and to test the potential for 90 day initial production rates of up to 1,600boe/d as seen at the Cane Creek Field, south of the GVU acreage. We look forward to working with Schlumberger to integrate these results as we further refine the GVU22-1 well trajectory."

Contacts:

Rose Petroleum plc Matthew Idiens (CEO) Chris Eadie (CFO)	Tel: [phone] Tel: [phone]
Allenby Capital Limited - AIM Nominated Adviser Jeremy Porter / James Reeve / Liz Kirchner Cantor Fitzgerald Europe - Financial Adviser and Joint Broker Nick Tulloch David Porter Turner Pope Investments - Joint Broker	Tel: [phone] Tel: [phone]            Tel: [phone]
Andy Thacker	Tel:  [phone]

Media enquiries:

Allerton Communications	Tel: [phone]
Peter Curtain	[e-mail]

Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD, Technical Adviser to the board of Rose Petroleum plc, who meets the criteria of a qualified person under the AIM Note for Mining and Oil & Gas Companies - June 2009, has reviewed and approved the technical information contained within this announcement.

Notes to editors

Rose Petroleum plc (http://rosepetroleum.com) is a North America-focused oil and gas company whose primary asset is approximately 80,000 net acres in the prolific oil and gas producing Paradox Basin in Utah, U.S.A., where it is earning into a 75% working interest. Using high-quality data gathered in a 3D seismic survey completed in October 2017, the Company has identified drilling locations in naturally fractured areas of the Paradox Formation and has chosen the first well location and it is now permitted to drill and plans to commence the drilling programme and the first well as soon as possible, subject to rig availability, stipulations of the leases and financing. All of which should be achievable within the next few months.

On 22 June 2018, Rose announced a Competent Person's Report ("CPR") and Maiden Contingent Resource by Gaffney Cline & Associates ("GCA") on the Rose acreage covered by the 3D seismic, approximately 17,250 acres of the 80,000 acres held.  The CPR estimated a 2C Contingent Resource, net to Rose, of 9.25 MMBbl of oil and 18.50 Bscf of gas, and an unrisked pre-tax Net Present Value (NPV10) on the 2C Resources, net to Rose, of US$122 million. The CPR focused solely on one single reservoir - the Cane Creek reservoir (the "CCR" or "Clastic 21") - of the multiple prospective reservoirs within the Paradox Formation.

The Company's established management is supported by an expert technical team with extensive experience of the basin, where current operations nearby have proven successful, with significant initial production rates and low decline rates, offering strong economics even in the present oil price environment.

The Company's strategy is to grow both organically and through acquisition, identifying additional hydrocarbon assets, conventional or unconventional, that would benefit from the Company's fast-acting, entrepreneurial approach.

Rose Petroleum has been quoted on AIM since June 2004.

 

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