Rose (AIM: ROSE), the AIM quoted natural resources business, is pleased to announce an amendment to its existing earn-in agreement with Rockies Standard Oil Company LLC (“RSOC”) in respect of its Paradox acreage in Utah, U.S.A. (“Paradox acreage”). The original agreement with RSOC was entered into in March 2014 and subsequently amended in April 2016.
Under the terms of the new amendment, Rose and RSOC have established a new two year Area of Mutual Interest (“AMI”) across the Paradox acreage, covering approximately 9 townships or 324 square miles, in order to partner not only in respect of oil, gas, and/or associated hydrocarbon interests, but also in respect of lithium, or any other mineral interests.
Through its existing agreement with RSOC, Rose currently has the right to earn a 75% working interest in the Paradox acreage in respect of oil, gas, and/or associated hydrocarbons for a carry obligation of US$5.5 million. Under the terms of the revised agreement, this will now include any hydrocarbon or mineral interests identified or acquired within the AMI.
Rose is currently investigating the potential for the commercial extraction of lithium from the salar brines that exist within the clastic formations on the Paradox acreage, and the results from the proposed seismic shoot on the Paradox acreage will not only identify potential petroleum targets, but will also highlight any such potential lithium targets. The Paradox Basin is currently being widely explored for lithium with commercial grades in excess of 1,700 parts per million (“ppm”) already having been identified within the salar brines within the basin.
Matthew Idiens, CEO, commented:
“Although at an early stage, this is an exciting development for the Company. 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.”
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