Rose Petroleum acquires further acreage at Utah project

Natural resources company Rose Petroleum has acquired a 75% working interest in an additional 1,920 acres adjacent to its Gunnison Valley acreage in Utah's Paradox Basin.

Rose Petroleum and its joint-venture partner Rockies Standard Oil acquired the acreage at a cost of $35,000.

The AIM-listed firm believes the new acreage, which was covered by existing 3D seismic data it acquired in late 2017, would net the company a potential 2C contingent resource of 1.2m barrels of oil equivalent.

Chief executive Matthew Idiens said: "This acquisition stands to add further high-quality acreage at an exceptionally low entry cost."

"I now believe that Rose has fully utilised its unique 3D dataset to build a high potential acreage position and to significantly de-risk the initial drilling locations. We are now focusing wholeheartedly on the main objective of financing the drilling programme."

After the North America-focused oil and gas company reached an agreement with the Utah Bureau of Land Management regarding an updated operational plan for its Gunnison Valley Unit in December, Rose Petroleum extended the boundaries of the project to cover the GVU 22-1 well, which it considers to be a "top-ranked well location".

As of 0825 GMT, Rose shares had climbed 5.45% to 2.90p.