Rose Petroleum PLC (LON:ROSE) is set to carry out a new 3D seismic exploration programme in the Paradox Basin, Utah.
The company told investors that the Bureau of Land Management has accepted the environmental assessment study that supports its application for a permit to carry out the survey.
A 15 day public consultation period for the permit has now formally begun.
Rose said it expects that the permit will be awarded by the end of May, allowing the programme to take place in the second half of the year.
It was estimated, by Ryder Scott in 2014, that Rose Petroleum’s Paradox basin acreage could contain some 1.1bn barrels of oil and 2.2tln cubic feet of gas resources.
"The acceptance of the EA by the BLM and the commencement of the public consultation period is a major milestone in the permitting process and we understand this means the BLM believes all relevant issues have now been addressed to allow the permitting process to advance to final approval,” said chief executive Matthew Idiens.
“We look forward to receiving the final permit and commencing the physical shoot in H2 2017."
Rose Petroleum shares advanced some 15.2% after the announcement, to trade at 0.132p each.