Rose Petroleum PLC (LON:ROSE) has expanded its footprint in Utah’s Paradox basin, acquiring a 75% working interest in an additional 3,320 gross acres.
The package is being acquired via joint venture partner Rockies Standard Oil Company (RSOC) and, including the new acquisition, Rose noted that the partnership now addresses some 79,577 acres in the Paradox Basin.
WATCH: Additional acreage gives Rose Petroleum 'exactly what it needs'
It was picked up via auction, with the partnership securing the acreage in a deal worth US$36 per acre.
Significantly, the package of land falls within the boundaries of Rose’s recent 3D seismic survey and the AIM-quoted company’s management is said to be excited about the potential of the acreage.
Multiple “highly attractive” geological structures and potential well sites have been identified within the acquired area, the company added.
"We are delighted that we've been able to acquire this new acreage, which we believe to be highly desirable,” said Matthew Idiens, Rose chief executive.
“The fact that we have already completed the 3D seismic survey on this acreage is of particular significance as we have already determined its significant prospectivity. Multiple drill site locations have already been identified on the acreage and we believe the acreage has the potential to produce several million barrels of oil.”
"We have known about the auction for this acreage for some time and we are thrilled to have secured the acreage for such a reasonable price. We were concerned that the very strong initial results from the seismic survey on our adjacent existing acreage might push up the price of this acreage significantly.”
Idiens added: "We believe that we now have an impressive portfolio of acreage in the Paradox Basin, and we look forward to progressing negotiations with potential partners with a considerably stronger proposition."