Gulf Oil and Gas accountACCOUNT

Rose Petroleum Completed Strategic Acquisition

Source: 10/10/2014, Location: North America

Rose Petroleum plc, the AIM-listed natural resources company, is pleased to announce that its wholly-owned U.S. subsidiary, Rose Petroleum (Utah) LLC has acquired 100% of the assets of a privately owned oil and gas operating company, SEP - Cisco Dome, LLC and various other associated entities ("SEP"). The assets are located within the Uinta Basin adjoining Rose Utah's Mancos project where Rose Utah already owns rights to approximately 118,000 gross acres.

Rose's CEO, Matthew Idiens, commented: "We are extremely pleased to be able to update shareholders on this important acquisition which we view as a significant step in the process of establishing Rose as one of the leading operators in the area. This acquisition gives Rose Utah significant leverage within this area of operations as it now owns the only midstream gas gathering system and gas processing plant in that portion of the area. It also now owns the rights to a tap into the main gas transportation line in the area.

Idiens added: "We are delighted to have acquired what is a strategic asset to Rose at a favourable price from SEP who viewed it as non-core to their own operations. We look forward to informing the market of the increase in Mancos Resource figures in the coming months once our Ryder Scott Certified Resource Assessment Report has been updated with these new Mancos properties."

Under the terms of the Acquisition, Rose Utah has acquired 100% of the assets of SEP which include approximately 76 miles of gathering lines, a gas compression station and gas processing plant and a tap into a 26" natural gas pipeline for US$1.5m in cash.

In addition to the mid-stream assets, Rose Utah also acquired 17 producing wells and 35 shut-in wells. These wells are currently producing approximately 14 MMCFG and 110 barrels of oil and natural gas liquids per month. Existing production is from conventional reservoirs below the Mancos Shale Formation, which is Rose's primary zone of interest. As a result, all the wells, both producing and shut-in, pass through the Mancos Shale which will enable Rose to potentially utilise these vertical well bores to exploit the Mancos Shale horizontally, as well as the deeper conventional reservoirs which are present within 300 feet of the base of the Mancos.

The Acquisition includes over 11,000 gross acres, held by production from the 17 wells, of Mancos and deeper oil and gas rights. Rose has engaged Ryder Scott Company ("RSC") to up-date its Certified Resource Assessment Report, which was published in May, by adding these new Mancos Prospective Resources. RSC's mid-case gross Unrisked Recoverable Prospective Resource Estimates for Rose's existing leasehold (excluding the newly acquired assets) presently stand at 486.5 MMBO (million barrels of oil) and 2.9 TCFG (trillion cubic feet of gas). Rose has also engaged RSC to prepare a Certified Reserve Report on the deeper conventional production once Rose has completed its detailed field study of these reservoirs which will include Proved Producing, Proven Developed Non-Producing, Proven Undeveloped and Probable Reserves for the conventional reservoirs.

Up-side potential
Aside from the obvious up-side potential in the additional 11,000 acres of Mancos rights, Rose considers that there are significant opportunities to increase production on these leases from the conventional reservoirs in the form of work overs, recompletions, development drilling and improvements in production operations including through the installation of plunger lifts which can increase individual well production in the field by up to three times and which have a short payback period. Additionally, Rose considers that improvements can be made at the gas processing plant to yield additional natural gas liquids.

Rose Utah's CEO, John Blair, commented: "This acquisition not only gives us all-important production and additional Mancos assets, but importantly it also gives us control of the local mid-stream gas system and, in turn, significant leverage for future acquisitions in the area. The acquisition also has the added benefit of providing us with the ability to control the transportation and processing of gas associated with our Mancos oil production."

John Blair, BSc Geology, Chief Executive Officer Rose Petroleum (Utah) LLC, who meets the criteria of a qualified person under the AIM Rules for Companies - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement. Rose Petroleum (Utah) LLC, as operator of the project, is responsible for the contents of this press release.

Acquisitions and Divestitures News in United States >>

Australia >>  7/9/2020 - 88 Energy Limited is pleased to advise that that as at 7.00pm (Sydney time) on 8 July 2020, 88 Energy had acquired 90.97% of the shares in XCD Energy ...
India >>  7/9/2020 - BP and Reliance Industries Limited (RIL) today announced the start of their new Indian fuels and mobility joint venture, Reliance BP Mobility Limited ...

Canada >>  7/8/2020 - Solo, the AIM investing company targeting attractive production and development opportunities within the European energy market, provides the followin...
United States >>  7/8/2020 - Harvest Oil & Gas Corp. announced that a wholly-owned subsidiary has entered into a definitive agreement to sell its Appalachian Basin assets, which w...

Chile >>  7/7/2020 - Enel S.p.A. has increased its stake in its Chilean subsidiary Enel Chile S.A. to 64.9% of the company’s share capital, by settling two share swap tran...
Congo >>  7/7/2020 - Zenith Energy Ltd., the listed international oil & gas production company focused on pursuing African development opportunities, is pleased to announc...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

United States Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73 | 74 | 75 | 76 | 77 | 78 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.