Further to the operational update announced on 1 November 2018, Rose Petroleum plc (AIM: ROSE), the AIM quoted natural resources business, is pleased to provide an update on operations for the Gunnison Valley Unit (GVU) in the Paradox Basin, Utah, U.S.A.
The Company has now agreed an updated operational plan with the Utah Bureau of Land Management (“BLM”), and the benefits of this agreed plan are that the current GVU boundary will now be extended to include the acreage acquired in April 2018, in which the GVU 22-1 well is located. The GVU 22-1 well is considered a top ranked well location, based on the 3D seismic interpretation and its proximity to the producing 28-11 well.
Following on from the agreed plan, Rose and its partner Rockies Standard Oil Company (“RSOC”) have been in discussions with various drilling companies regarding the securing of an appropriate rig so that the GVU 22-1 can be spudded at the earliest opportunity. At the current time, it appears that a suitable rig will now be available in Q1 2019, in line with the now agreed operational plan. The Company is targeting securing the necessary drill programme funding ahead of then.
The Company has engaged Schlumberger to review the seismic attribute analysis, further validate and edit the seismic interpretation, and model the structural geometry, the distributions and orientations of natural fractures based on a geomechanical analysis within the GVU 22-1 structure. This work is expected to be completed shortly. The modelling efforts will provide expected fracture orientations and distributions within the constraints of the available data in the GVU 22-1 location and within the wider 3D seismic area. In addition, Schlumberger and Rose will utilise the completed work to refine the well path design to optimise the fracture networks to maximise the performance of the well. The fracture systems encountered will be a major factor in the commercial success of the well.
Matthew Idiens, CEO, commented: “We appreciate the pragmatic approach taken by the BLM and are pleased that we have been able to jointly agree a revised operations plan that is for the overall benefit of all parties.
I am pleased that we now have a formal plan that allows us to drill our highest-ranked target first, which is key to the development of the project. Having clarity over operations and the BLM approval enables us to refocus on the well financing and farm-in process.
We look forward to announcing the conclusions of the Schlumberger work when possible and look forward to working with them on the GVU 22-1 well path optimisation.”