logo-loader
Rose Petroleum PLC

Rose Petroleum set to ‘unlock transformational resources’ in Utah

The explorer is set to start drilling before the end of the year, and, according to analysts at Cantor Fitzgerald, success would be transformational

oil and gas operations
Cantor has a 9p price target

Rose Petroleum PLC (LON: ROSE) is gearing up for a well that may “unlock transformational resources”, that’s according to analysts at Cantor Fitzgerald.

The stockbroker rates Rose as a ‘buy’ and has a price target of 9p, suggesting some 268% upside to the oiler’s current price of 2.68p.

“Rose aims to commence low-risk appraisal work at its Gunnison Valley Unit (GVU) in Utah’s Paradox Basin later this year,” Cantor analyst Ashley Kelty said in a note.

READ: Rose Petroleum looks forward to Paradox drilling

“The planned appraisal well on the GVU later in 2018 is targeting the Clastic 21 interval - one which has been productive nearby.”

Kelty highlighted the findings of a recent third-party assessment – competent persons report (CPR) – which defined a 13mln barrel resource whilst detailing the potential of multiple stacked intervals which he said could increase resource volumes further if GVU drilling proves successful.

“We see this well as being relatively low risk, and would de-risk the multiple additional prospects and leads across the leases held, and offer significant follow-on exploration potential for the company,” the analyst added.

On Tuesday, Rose’s interim results statement highlighted continued progress toward its goal of starting the well programme before the end of 2018.

Rose emphasised that its current activity in the Paradox basin remains the ‘absolute priority’, though noted other new opportunities.

Chief executive Matthew Idiens described as the first half of 2018 as a “period of intense activity”.

Looking ahead, Cantor’s Ashley Kelty added: “Drilling success could unlock a transformational development and lead to de-risking of the near-field upside.

“With a wider prospective resource base being in excess of 1.5bn boe, we feel that the market discount should unwind as investors appreciate the scale of the potential in this exciting new play.”

Quick facts: Rose Petroleum PLC

Price: £0.02

Market: AIM
Market Cap: £2.69 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Rose Petroleum PLC named herein, including the promotion by the Company of Rose Petroleum PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Significant board changes at Rose Petroleum

Rose Petroleum PLC (LON:ROSE) outgoing CEO Matthew Idiens and new boy on the block Colin Harrington talk to Proactive London about changes to the company's board. Idiens told investors of his intention to step down from his position last week saying he would stay until the company had...

on 28/6/19

2 min read