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Rose Petroleum receives final permit to start drilling at Paradox acreage in Utah

The AIM company is having to wait 45 days for some admin tasks to be completed, but once they are, Rose will be able to start drilling the GV 22-1 well

oil drilling
Rose has a “high degree of confidence” in GV 22-1 given its similarities and proximity to other producing wells

Rose Petroleum PLC (LON:ROSE) is to drill the GV 22-1 well at its Paradox acreage in Utah “as soon as possible” after being given the green light from US authorities.

The application for a permit to drill was approved by the US Bureau of Land Management and is valid for an initial two-year period.

WATCH: Rose boss Matthew Idiens on final permit award

“We are delighted to have received this final permit for the GV 22-1 well,” said chief executive Matthew Idiens.

“Having acquired a significant footprint in the Basin, permitted and shot the 3D seismic, processed and interpreted the data with fantastic results, we are now finally close to delivering on our key corporate objective of spudding our first Paradox well.”

READ: Rose to unlock ‘transformational resources’ in Utah

In order for GV 22-1 to be the next obligation well, AIM-quoted Rose has had to extend the boundary of the Gunnison Valley Unit, changes which are expected to take about 45 days to complete.

Once those changes are completed, all the permits from both the BLM and the state of Utah required to start drilling operations will be in place.

Rose added that discussions regarding the financing of the drill programme are ongoing and will be accelerated once the boundary amendments have been finalised.

 A competent person’s report (CPR) estimated that GV 22-1, which will be a horizontal well, could be host to up to 894,000 barrels of oil equivalent (BOE).

‘High degree of confidence’

The potential is supported by its “close analogy” to “highly productive structures” within the nearby Cane Creek Field (12 miles south) and locally by its close proximity to the producing 28-11 well.

The latter has produced 141,000 BOE since it was drilled in 2016, which Rose said was “a key piece of evidence for the presence of hydrocarbons and of a greater fracture network” across the area covered by its 3D seismic surveys.

“These factors give the board a high degree of confidence in the potential of the GV 22-1 well, and it was for these reasons that the company decided to prioritise the GV 22-1 location as Rose's first well,” read Thursday’s statement.

Having opened higher, shares dipped 2.6% to 3p in late-afternoon trading on Thursday.

--Updates for share price and video link--

Quick facts: Rose Petroleum PLC

Price: 1.15 GBX

Market: AIM
Market Cap: £2.32 m

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