Rose Petroleum revealed positive findings from the analysis of the State 1-34 well, in the Mancos shale, which ‘correlate strongly or exceed’ the parameters of the large independent resource estimates.
A separate statement, meanwhile, detailed a £3.1mln equity fund raise. Rose is issuing 1bn new shares, each priced at 0.3p, to institutional and other investors. The funds allow support the development of projects in eastern Utah, such as those in the Mancos shale.
Findings of the 1-34 well add further confidence to the Ryder Scott estimate for 709mln barrels of oil and 4.26 trillion cubic feet of gas. It has also given more confidence in the firm’s horizontal well selections. Permitting is currently underway for six wells in the Mancos shale and the campaign is expected to begin before the end of 2015. The campaign is expected to start at the Cisco Dome field as it will provide certain cost reduction opportunities, due to existing infrastructure.
“We are feeling ever more confident of the prospectivity of the Mancos Shale,” said chief executive Matthew Idiens. “Most importantly, overall the results match or exceed the key assumptions and estimates used by Ryder Scott in their resource calculations, thus giving further credence to their significant prospective recoverable resource numbers for the Mancos of 709MMbo and 4.26 TCF gas.
"We are now in a position to confidently define our first horizontal well location and with the permitting process underway we are excited about the months ahead as we anticipate spudding our first Mancos Shale well before the year end."