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Rose Petroleum's new operational team boosts progress and identifies savings
Natural resources firm Rose Petroleum's newly assembled operational team are close to completing the first phase of well design work at the company's 75%-owned project in the Paradox Basin, Utah.
The operational team, who have previously designed, managed and implemented a successful nine well drilling programme on the Paradox Basin, are close to finishing subsurface assessment, well location selection and basic well design and engineering for Rose's first well at the site.
Matthew Idiens, chief executive of Rose Petroleum, said: "I am delighted that we've been able to assemble such a capable operational team, with an impressive track record of success in the basin. Significant cost savings have already been identified in the well design and further savings are expected."
The expected total cost of the first well is now $7-8m, a significant improvement on the company's previous estimate of $8-10m.
The company expects that, following a site visit from the bureau of land management, its application for a permit to drill will be granted in the third quarter with the drilling of the first well to commence shortly afterwards.
"We continue to make excellent progress on the ground and are preparing to drill our first appraisal well before the end of 2018, which will be a key milestone for Rose," said Idiens.
Sixty potential well locations have been identified in the area covered by Rose Petroleum's 3D seismic survey and the company projects that there are unrisked prospective resources of circa 38m barrels of oil equivalent in the Crane Creek section of the acreage alone.
As such, the company has also acquired further acreage in the area and is proceeding with permitting for the drilling of a second well on this new area which the company management considers to have an estimated ultimate recovery of 894,000 barrels of oil equivalent.
As of 1201 BST, Rose Petroleum's shares were up 10.53% at 3.15p.