Rose Petroleum PLC (LON:ROSE) has reached a new agreement which will see the group explore lithium as well as oil and gas in Utah’s Paradox basin.
The company told investors that it is currently investigating the potential for the commercial extraction of lithium from the salar brines that exist within the Paradox basin.
Data from the group’s proposed seismic shoot is expected to identify lithium exploration areas as well as petroleum targets, Rose added.
READ: Rose Petroleum looks forward to Paradox drilling after period “of continued operational progress”
It highlighted that the Paradox Basin is currently being widely explored for lithium with commercial grades, in excess of 1,700 parts per million, identified within the salar brines.
"Although at an early stage, this is an exciting development for the company,” said Mathew Idiens, Rose chief executive.
“For some time we have been looking at the potential for lithium extraction from within our Paradox acreage, and we look forward to working alongside RSOC in respect of optimising this potential opportunity."
To facilitate the inclusion of lithium exploration, Rose amended its agreement with Rockies Standard Oil Company LLC (originally entered into back in March 2016) and as such it will now have the right to earn 75% working interest in the Paradox acreage after it spends US$5.5mln on ‘any hydrocarbon or mineral interests identified or acquired within the area of mutual interest (AMI)’.
The AMI spans some 324 square miles, and it will be in place for a two year period.