Rose Petroleum PLC (LON:ROSE) has received a ‘very encouraging show of support’ from the US authorities as it advances its assets in Utah.
The company today revealed that it had secured an important extension of one of its projects, with confirmation coming from the School and Institutional Trust Lands Administration (SITLA) granting Rose a further five-year extension for eight state leases.
It rubber stamps the acreage referred to as the Gunnison Valley Unit, and confirms the group’s acreage position which comprises some 52.3mln acres - including 6.2mln acres of SITLA land, and 43mln acres of Bureau of Land Management (BLM) land.
Rose clarifies that the SITLA extension preserves its ability to develop the state land as well as its other acreage, once a 3D seismic programme is completed later this year.
"Due to the progress we are making on the 3D seismic shoot programme, the State has agreed to extend the leases which is a very encouraging show of support,” said chief executive Matthew Idiens.
“We look forward to updating the market further on the seismic permitting process in due course."
Rose earlier this month told investors that it anticipated that it would be granted a permit for the seismic programme in May. That statement came as the BLM accepted the environmental assessment study, which triggered a 15 day public consultation.
Assuming a permit is secured in May, the company expects to carry out the exploration programme in the second half of the year.