Rose Petroleum plc (AIM: ROSE), the Rocky Mountain-focused oil and gas company, is pleased to provide an update on the restructuring of its project in the Paradox Basin, Utah, U.S. (the "project") further to its announcement on 14 October 2019.
· Rose has been granted regulatory approval by the U.S. Bureau of Land Management (the "BLM") for two year lease extensions on circa 11,300 acres within the core of its project area.
· The Company now holds a focused and contiguous land position of circa 19,900 acres with extended lease terms (as set out in note 1 below)1, the majority of which is covered by Rose's proprietary 3D seismic survey which was completed in 2018.
· Rose gains an immediate 75% working interest in and operatorship of the extended acreage, rather than the earn-in structure through which the leases were formerly held.
· There are no acquisition costs related to the extended acreage, and Rose will continue to make lease payments on the extended acreage. Overall lease payments have been substantially reduced via the restructuring now that non-core acreage has been relinquished.
· The restructured project has estimated net 2C Contingent Recoverable Resources of circa 9 million barrels of oil equivalent ("mmboe") solely within the Cane Creek reservoir(2) with further exploration potential to be found in 5 shallower reservoir intervals.
Colin Harrington, Chief Executive Officer, stated:
"With the project JV agreement successfully renegotiated, the project land position now restructured and an increase in term now secured, we are in a strong position to recommence our farm-in process.
"The restructured project, combined with the increased focus that partners like the U.S. Department of Energy are bringing to the Paradox Basin, will make the project more attractive to potential funding partners.
"While the Company's immediate focus is to acquire near-term production in more mature Rocky Mountain Basins, the upside that can be delivered from our Paradox project makes it a highly attractive investment opportunity and ensures the project will remain a central part of Company's future focus and activity.
"I would like to thank our JV partner Rockies Standard Oil Company and the BLM for their continued commitment to Rose and the development of the project."