Rose Petroleum PLC (LON:ROSE) updated investors on its operations in Utah’s Paradox basin where it is advancing a competitive partnering process.
Last month, the explorer revealed it had seen ‘strong interest’ and that a number of parties had since followed up in the process.
READ: Rose Petroleum investors boosted as new analysis sees 450mln barrels in Paradox basin
Presently, Rose is working on a virtual data room to support the process and it expects this phase to be completed by the beginning of April. The company added that it is confident of a positive outcome.
Matthew Idiens, Rose chief executive, said: “we believe we have significantly de-risked the project so that we are now confident of achieving operational success and driving the project forward.
“We believe that if the discussions with prospective partners continue as they have commenced, we should be able to fund the well with minimal dilution to shareholders, if any.”
Rose also highlighted that it has now completed desktop work (structural interpretation of recently acquired 3D seismic data) for the Gunnison Valley area within the Paradox basin acreage, and it is now working to select development well locations.
READ: Rose Petroleum to attract potential investors and partners - analyst
Meanwhile, the application process is underway for a drilling permit and the company recently held meetings with regulators, both at Federal and State levels. It expects to receive the permit so that it can spud a well in the fourth quarter.
Idiens added: "The company continues to make excellent progress in pursuit of its key objective of spudding its first Paradox well in 2018.
“The seismic acquisition was completed within time and under budget, the initial well location has been selected, and the permitting process is underway.
“Importantly, we have been very encouraged by the interest shown in the project to date."