Rose Petroleum (AIM: ROSE), the AIM quoted natural resources business, is pleased to provide an update on operational activity on the ground in Utah following receipt of funding from the recent equity placing for the 3D seismic shoot in the Paradox Basin.
Having commenced operations prior to the funding being in place, Rose Petroleum is now well on track with the seismic shoot and should complete it well ahead of the Company’s year-end target. The project is now one month into operations, post final permitting, and considerable progress has been made across the 40 square mile shoot area.
The surveying work, to mark source point and receiver points for the seismic work is now completed and Xtreme Drilling, the drilling contractor, has now mobilised five drilling rig crews and has commenced the drilling of the 405 shot holes required for the shoot. The drill crews are expected, weather permitting, to complete the shot hole drilling programme by mid-October.
Dawson Geophysical, the Company’s turnkey consultants, has mobilised their recording crew and all equipment required for the shoot is now on site. The recording crew have completed their seismic sweep tests that define the actual parameters by which the seismic crews will begin recording data. Strength of signal and time of signal were tested in different frequencies and then analysed to see which produces the best quality data. The parameters are now set with data quality appearing to be excellent. The recording of the entire 40 square mile shoot commenced on 4th October and, weather permitting, is expected to take approximately five weeks.
The balance of funding expected from the recent equity placing, which is subject to the passing of the resolutions at the Company’s general meeting on 9 October 2017, will provide the working capital for the Company to undertake the follow up work from the seismic shoot and commence drill permitting.
Matthew Idiens, Chief Executive, commented:
“I am delighted by the significant progress being made in the field and would like to thank both our consultants and the BLM for the fantastic job they are doing on site. The seismic is key to unlocking the acreage, by not only identifying drill targets but also steering the horizontal leg of the wells. The quality data and the track record of the team we have assembled to deliver a successful drill programme puts us in a strong position going forward.
According to our technical team, who have significant seismic shoot experience in the area through their time at Fidelity, the quality of the data achieved during the sweep parameter tests is some of the best they have seen to date in the basin, which is extremely encouraging. I look forward to keeping the market informed as the shoot progresses.”
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