Rose Petroleum plc is pleased to provide an operational update on activities within its highly prospective Uinta Basin acreage in Utah, in which it has a 75% working interest, and where the Company's primary target is the Mancos Shale.
Matthew Idiens, Group CEO, commented: "The results to date from the Mancos Shale core analysis are in line with our expectations and re-emphasise the prospectivity of this exciting opportunity. Based on the data gained by the analytical results, we are confident in proceeding with our exploitation of this formation. We plan to permit a six well programme and, having now selected our top targets, we are eager to move the process ahead and plan to start drilling the first of these in late 2015.
"Our detailed geological and engineering assessment suggests that targeting the Mancos in the Cisco Dome field will deliver the best results going forward for our shareholders and, given that we would need to re-permit a horizontal well at the State 1-34 location, we plan to target the new location with better well control and excellent surface infrastructure with the gathering system and processing plant nearby.
Ty Watson and the team are pulling together to deliver on the stated operational milestones."
Mancos shale core analysis
Results to date from ongoing analysis confirm the technical data the Directors anticipated and has provided a useful insight into the geological nature present within the Company's licence area.
Six well permitting programme
Rose's experienced team has picked its locations for the first six Mancos Shale well locations for permitting. To date, HRL Compliance Solutions and Uintah Engineering have evaluated each location site in consideration of environmental surveying requirements. All of this work is done as a precursor and preliminary approval for permit to drill that will then start the actual EA and BLM permitting approval process. The final authority to drill plans are anticipated to be submitted in May 2015 to the BLM.
State 1-34 Well
The Company was hopeful that limited early stage cash flow would be achievable from the conventional target located beneath the Mancos Shale. However, as announced on 31 March 2015, following completion on this target, this was deemed unviable. Analysis of the electrical logs showed that, whilst the conventional zone was present, it was unviable as a result of the wellbore intersecting a close existing vertical fracture filled with water which in turn exposed the conventional zones to water making them uncommercial.
Having completed the well in the conventional target and based on the orientation data from the core analysis, the Company can no longer use the 1-34 vertical well for the horizontal leg. In order to drill the horizontal, the Company would be required to permit a whole new location stepping away and drilling laterally towards the 1-34 existing well location. However with the well data now available for the Cisco Dome field, the Company believes that its proposed well location in the Cisco Dome area has much stronger success potential with additional cost savings from the existing surface infrastructure in place at the location, being local to the company's gathering system and processing plant.