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Rose Petroleum Paradox basin plans boosted by neighbour's success

Published: 16:24 02 May 2014 AEST

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Rose Petroleum's (LON:ROSE) plans for newly acquired acreage in Utah's Paradox basin have been boosted by a positive update from the operator of a neighbouring project.

New York listed MDU Resources, as part of a broader update, yesterday told investors that that the Paradox Basin is the company's fastest growing oil producing area, with output up 121% in the first three months of 2014.

MDU also said that one of its wells is exceeding expectations, flowing more than 1,000 barrels of oil per day. It believes that ultimate recoveries for each of its wells in the basin will be in the order of 1.5mln barrels of oil.

The Paradox basin is expected to "play a key role" in MDU's growth strategy, the company revealed.

Such assertions underline the potential of Rose's recent acquisition of interests in 195,000 acres in the area.

The extent of that potential is expected to be revealed by an upcoming new independent assessment of the acreage, Rose chief executive Mathew Idiens explained.

"MDU's update reaffirms what we firmly consider to be one of the most exciting oil exploration plays, onshore USA," Idiens said.

"We have consultants Ryder Scott Company, which has prepared Fidelity's reserves report, preparing a CPR for Rose, which will be announced in due course."

Last month, Idiens said investors had yet to realise the significance of the Utah acquisition.

A US$2mln farm-in deal was agreed in March. It saw Rose building a significant land position, 195,000 net acres, in the Uinta and Paradox Basins in east of the state. Rose will carry its partner for drilling programmes costing US$9.5mln in the Mancos and US$7.5mln in the Cane Creek.

Rose Petroleum announces CPR results for Paradox basin in Utah

Matthew Idiens, chief executive officer of Rose Petroleum PLC (LON:ROSE) tells Proactive that the company has presented a new competent person's report (CPR) assessing its Paradox basin in Utah, United States. “We’ve put a lot of effort into the geological assessment and these were...

on 22/6/18