edge closer to spudding their first well in the Utah’s Paradox Basin. News earlier this week of a Schlumberger study of the Gunnison Valley Unit (GVU) project area in the basin revealed that the proposed well “is situated optimally to capture the fold and fault related fractures.”
Today, Rose announced that they, along with their joint venture partner Rockies Standard Oil Company, have acquired a 75% working interest in an additional 1,920 gross acres (1,260 net acres) bordering its existing GVU.
The new acreage was acquired at a cost of $35,000 with an “exceptionally low” acquisition cost/net boe of $0.03/boe.
3D seismic data obtained by Rose obtained in late 2017, which covers a majority of the new acres, informed a targeted lease acquisition programme for the company which was completed with the purchase of this new acreage.
Rose has estimated that the new acreage has potential 2C Contingent Resources, net to Rose, of 1.2 million barrels of oil equivalent. If added to the existing resources, the GVU holds net 2C Contingent Resources of 12.33 mmboe, valued at a pre-tax net present value at a 10% discount rate of $122.4m.
CEO Matthew Idiens celebrated the news but emphasized that the company is “now focusing wholeheartedly on the main objective of financing the drilling programme.”
Read other coverage of Rose Petroleum's Paradox Basin project here
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