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Rose Petroleum PLC Jumps On Drilling Potential In Utah

Shares of Rose Petroleum (LSE: ROSE) increased by 7% in early trade after the company gave updates on the Paradox and Mancos project areas — two shale resource plays — in Utah.

oilAt the Paradox play, the design of a 61-square-mile 3D seismic survey has been completed. Dawson Geophysical Company, which specialises in seismic data, has been awarded the acquisition phase of the seismic programme.

Rose is seeking contractors to complete a well in the Gunnison Valley Unit, which should take place in Q4 this year.

At Mancos, a drilling decision has been made with the use of 2D seismic data. Again, a contractor is being secured, and the process of beginning to drill the well is anticipated in Q4.

Rose has identified a potential strategic acquisition in the Mancos project area. If the board determines that it is in the best interests of shareholders, then a deal — which would be funded from the proceeds of the company’s recent £6.5m fundraising — could be closed during Q4.

Two new appointments have been made as Rose commences the staffing of its US Oil & Gas technical team. David Patterson, who joins as vice president of geology, and Savilla Cribs, a geological engineering technician, have both started work at Rose’s new Denver office.

The chief executive, Matthew Idiens, commented:

“With the team now in place it’s all hands to the pumps and I am pleased with the progress we are making and the momentum now building on the operational front. I am confident we now have an experienced ops team is place to drive these projects forward. We look forward to drilling and completing our first wells later this year and we will keep the market posted in regards to how this progresses.”

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Mark Stones has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.