Rose Petroleum Completes strategic acquisition

Rose Petroleum Completes strategic acquisition

Strategic acquisition of producing wells, midstream gathering system, gas processing plant and tap into 26″ pipeline in the Company’s Mancos development area, Grand County, Utah U.S.A
Rose Petroleum plc (AIM: Rose), the AIM-listed natural resources company, announced that its wholly-owned U.S. subsidiary, Rose Petroleum (Utah) LLC (“Rose Utah”) has acquired 100% of the assets of a privately owned oil and gas operating company, SEP – Cisco Dome, LLC and various other associated entities (“SEP”) (the “Acquisition”). The assets are located within the Uinta Basin adjoining Rose Utah’s Mancos project where Rose Utah already owns rights to approximately 118,000 gross acres.
Acquisition highlights
midstream assets
approximately 76 miles of gathering lines
gas compression station and gas processing plant currently operating at a 30% utilisation rate
tap into 26″ natural gas pipeline
upstream assets
52 wells – 17 producing and 35 shut-in
average working interest of 99.3256%
average net revenue interest 75.0733%
approximately 11,000 gross acres of leasehold
conventional production and shallower Mancos Shale resources
currently producing approximately 14 million cubic feet of gas (“MMCFG”) and 110 barrels of oil and natural gas liquids per month
current net income over US$40,000 per month
purchase price: US$1.5m in cash
Rose’s CEO, Matthew Idiens, commented: “We are extremely pleased to be able to update shareholders on this important acquisition which we view as a significant step in the process of establishing Rose as one of the leading operators in the area. This acquisition gives Rose Utah significant leverage within this area of operations as it now owns the only midstream gas gathering system and gas processing plant in that portion of the area. It also now owns the rights to a tap into the main gas transportation line in the area.
Idiens added: “We are delighted to have acquired what is a strategic asset to Rose at a favourable price from SEP who viewed it as non-core to their own operations. We look forward to informing the market of the increase in Mancos Resource figures in the coming months once our Ryder Scott Certified Resource Assessment Report has been updated with these new Mancos properties.”
Source: Rose Petroleum plc
Oil and Gas Press

#FOLLOW US ON INSTAGRAM