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Operations update
Rose Petroleum, the AIM-listed (LSE:ROSE) natural resources company, has provided 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.
Highlights:
State 1-34 Mancos Well, Uinta Basin, Utah
· Completion rig now mobilised to verify the commerciality of the potential conventional hydrocarbon discovery identified below the Mancos Shale formation
· Preliminary side wall core analyses have been received from Weatherford confirming expectations regarding lithology and porosity
· Production tests on multiple intervals will follow and, subject to successful testing, the Company plans to hook-up to a production facility to commence production
· The analytical work on the whole cores recovered from the primary Mancos Shale formation is expected to be completed in Q2 2015
o Data will be used to orient the direction of a horizontal lateral well in the Mancos and to optimise fracture stimulation design of the horizontal wellbore
Paradox activity update
· Permitting process underway for Rose’s 61 square mile 3-D seismic programme to identify a first well location. Shooting is expected to commence in H2 2015, subject to permits.
· Fidelity, which owns the Cane Creek Field south of Rose’s Paradox leasehold, has completed a further producing well demonstrating the area’s strong potential – this brings the total number of new producing wells drilled by Fidelity since 2012 to 23 wells with 20 additional wells currently permitted to be drilled.
o The Cane Creek Unit #28-3 well was completed in the Paradox Clastics at a sustained rate of 600 BOPD through the month of January 2015
· CCI Paradox Upstream, a division of energy merchant company Castleton Commodities International, has completed two high volume gas producing wells in the wet gas window in the southern end of the field
o Combined the two wells have produced over 4.5 MMCFG/D since November of 2014 and CCI currently has plans to drill a third well in the same vicinity
Matthew Idiens, Group CEO, commented:
“The next few months are a key time in the development of the Company as we commence the completion of multiple intervals in the conventional reservoir, targeting production in Q2 2015. Concurrently, we continue with the analysis of the whole core from the Mancos Shale, and the development of this unconventional target remains our key priority given the significant potential that it presents.
“While the current oil and gas climate presents challenges to the sector, our projected low breakeven cost of below US$20 per barrel of oil equivalent from the unconventional Mancos Shale, makes our assets commercial and attractive at both current and lower oil prices. This differentiates us from our peers. Additionally, regional activity in the Paradox continues to highlight the upside available within our oil and gas division and we are progressing the 3D seismic permitting process.”
