Mancos operations update - Uinta Basin, Utah
Rose Petroleum plc ("Rose" or the "Company")
Mancos operations update - Uinta Basin, Utah
Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, is pleased to provide an operational update on activities within its US onshore oil and gas division which is made up of a 75% working interest in over 250,000 gross acres in the highly prospective Uinta and Paradox Basins in Utah.
Summary
State 1-34 Mancos well, Uinta Basin, Utah
· Positive results from initial core analysis on the Mancos Shale by Weatherford reiterates the strong potential of the Mancos, which benefits from a low breakeven price considering the excellent infrastructure and low entry price
· Results from the Mancos Shale indicate good natural fracturing, positive total organic content ("TOC") between 2.0% and 4.5%, strong residual and moveable hydrocarbon volumes and good storage capacity based on the porosity of the siltstone intervals
· When the core analysis is completed it will be integrated with the Halliburton and Weatherford's open hole well log data and mud log data for a comprehensive analysis of the Mancos
· Significant Un-risked Prospective Recoverable Resource Estimates for Rose's Mancos assets of 709 million barrels of oil ("MMBO") and 4.26 trillion cubic feet of gas ("TCFG") based on Ryder Scott's Certified Persons Report
· Completion attempt of the deeper conventional intervals was not deemed commercially viable - Mancos Shale remains the Company's primary target
Future Mancos drilling programme, Uinta Basin, Utah
· Six Mancos wells are being prepared for permitting to drill with the Bureau of Land Management and the State of Utah Division of Oil, Gas and Mining
· Well locations selected on the basis of optimum resource development and to show consistency of the shale throughout the acreage
· Once drill permits are approved, a Mancos drilling programme is projected to commence relatively shortly thereafter once all contractors and vendors are in-place
Matthew Idiens, Group CEO, commented:
"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. Encouraged by the initial indication of the core results we are pressing ahead with permitting additional Mancos wells, locations selected specifically to optimise the resource upgrade and show the consistency of the shale across our acreage. 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. We look forward to keeping the market updated on our progress."
State 1-34 Mancos Well
Rose began completion of the deeper conventional intervals below the Mancos in the State 1-34 well earlier this month. Four intervals were perforated and flow tested and none were deemed likely to be commercial. The well is currently shut-in pending completion of the Mancos core analysis, which was the primary objective of this well.
The primary purpose of the State 1-34 well is to gather data from the Mancos shale. Based on the mud logs, open hole logs, and core analysis, the preliminary results for the Mancos shale are encouraging. Ryder Scott calculated mean gross Un-risked Prospective Recoverable Resource Estimates for Rose's Mancos assets of 709 MMBO and 4.26 TCFG. With this level of recoverable reserve potential and the positive initial data from the State 1-34 well, the Mancos shale is the Company's initial primary focus while the Paradox 3-D seismic programme is underway.
The analytical work on the Mancos cores is expected to be completed in Q2 2015 and will be used to orient the direction of horizontal laterals in future Mancos wells and to optimise fracture stimulation design of the horizontal wellbores.
Mancos drilling programme
Following an in-depth geological assessment, Rose has now selected six primary locations and is in the process of preparing the drilling permit applications to be submitted to the Bureau of Land Management and the State of Utah Division of Oil, Gas and Mining for approval. Once the permits are approved, Rose anticipates initiating a first phase, three well drilling programme shortly thereafter, once all contractors and vendors are in-place. Once the first three wells have been drilled and evaluated, the Company will have six months before it is obliged to drill the other three wells or allow the drilling permits to lapse and then re-permit.
John Blair (BSc Geology and MSc Geophysics), Director of Oil & Gas for Rose Petroleum plc, who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement.
**ENDS**
For further information please visit www.rosepetroleum.com or contact:
|
Matthew Idiens (Group CEO) |
Rose Petroleum plc |
Tel: +44 (0) 20 7236 1177 |
|
John Blair (CEO) |
Rose Petroleum (US) LLC |
Tel: +1 (303) 390 3866 |
|
Jeremy Porter |
Allenby Capital |
Tel: +44 (0) 20 3328 5656 |
|
Alex Price |
Allenby Capital |
Tel: +44 (0) 20 3328 5656 |
|
Elisabeth Cowell |
St Brides Partners Ltd |
Tel: +44 (0) 20 7236 1177 |
|
Lottie Brocklehurst |
St Brides Partners Ltd |
Tel: +44 (0) 20 7236 1177 |
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, milling and porphyry copper exploration 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 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. Un-risked Prospective (Recoverable) Hydrocarbon Resources on a Mean Case basis for the collective total Mancos Shale and Paradox Formation combined was 1,825.07 MMBO (million barrels of oil) and 6,447.87 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, and the completion of a further £3.5 million fundraise was announced on 5 December 2014.
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.
In December 2014, Rose spudded its first well in the Uinta Basin taking core samples from the Mancos Shale. Whole core was taken within the Mancos Shale and is being analysed for optimisation of the well stimulation programme for future horizontal wells in the Mancos Shale.
Rose 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
This information is provided by RNS
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