Rose concluded its programme to acquire 40 square miles of 3D seismic data over a key area its acreage position in the Paradox Basin in Utah in late October 2017 and has now completed its initial structural interpretation over a 20 sq. mile lease position called the Gunnison Valley Unit (GVU). Initial seismic interpretation suggests that this area is highly prospective and Rose has already identified over 50 potential drilling targets.
Rose has completed its initial structural interpretation of the 3D seismic data acquired over its Gunnison Valley Unit (GVU) which comprises part of its larger lease position in the Paradox Basin. Analysis of the 3D data confirms a wide range of key geological structures and the identification of multiple drilling targets.
The interpretation is an ongoing process. However, Rose’s analysis has identified 53 potential well locations in the Cane Creek reservoir alone within the 20 sq. mile area of the GVU covered by 3D seismic. The map overleaf depicts clearly the focus of Rose’s recent 3D seismic survey within its acreage position.
Rose’s initial internal resource estimates are consistent with the Ryder Scott competent persons report (CPR), published in 2014, which covers the company’s 85 sq. mile Grand Main leasehold area (including the GVU acreage). For the 20 sq. mile area covered by the 3D seismic data, the report suggests that the gross resource potential is hydrocarbons in place of 450 mmboe and mean unrisked prospective recoverable resources of 32.5 mmboe. In the 2014 report, Ryder Scott also ascribed a chance of success of 56% for drilling in the Cane Creek reservoir zone which represents a relatively low risk prospect.
As the map overleaf also depicts, Rose possesses a further 65 sq. miles of acreage in the Grand Main leasehold area and 48 sq. miles of similar acreage in the Emery Main leasehold area which all contain the highly prospective Cane Creek reservoir zone in addition to other Paradox formation clastic intervals. Rose will now proceed with further analysis to refine the Cane Creek reservoir zone resource potential. This work will enable the company to high grade its first well locations and evaluate other areas with the Paradox Formation which consists of approximately 24 clastic zones, of which Cane Creek is the primary producing zone to date.
The company is currently progressing the Application for Permit to Drill (APD) process for the highest priority drill target locations with a view to drilling its first well in H2 2018. Rose confirms that it is fully funded for these permitting activities.
Rose is planning to exhibit the structural interpretation of its 3D seismic acquisition programme at the upcoming NAPE Summit in Houston Texas from 6-9 February 2018. The company will use this exciting opportunity to meet potential investors with a view to acquiring partners and investors to fund future drilling activities through joint venture or farm-in agreements. With negotiations of this description already underway, we expect news flow to accelerate over Q1.
Rose’s acreage within the Paradox Basin, Utah
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