ROSE – Schlumberger Study Results

Further to the operations update announced on 6 December 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.

Rose is encouraged to report that the fracture characterisation study undertaken by Schlumberger has now been completed. In the detailed analysis of the proposed well GVU22-1, the models of the combined fracture sets developed in the study show that the well is situated optimally to capture the fold and fault related fractures. The study also states that it is expected that both fault and fold related fracture sets are viable from the geomechanical modeling.

The results describe that fractures are more intensely developed across the fold axes and as expected, are not uniformly distributed across the field area, which strongly validates the use of 3D seismic in the Basin. The strongest fracture development is along the WNW-ESE folds and at the intersection with those folds oriented NW-SE.

The study further suggests that the seismic attributes evaluated are likely to reflect potential fracture networks and they should be used in combination with the geomechanical modeling to select areas with a higher probability of stronger fracture intensity to assist with well location selection in the future. The planned well location is also consistent with stronger amplitudes from the attribute mapping, which may correlate to fracture corridors.

 Matthew Idiens, CEO, commented: “This study corroborates our internal work and is consistent with the work performed by Gaffney Cline & Associates for the Competent Persons Report, announced on the 22nd June 2018. It reinforces the assessment of the Clastic 21 reservoir as a naturally fractured reservoir and illustrates the value of drilling the 22-1 well. This well has been designed to assess the commercial viability of the Clastic 21 reservoir within the GVU area, and to test the potential for 90 day initial production rates of up to 1,600boe/d as seen at the Cane Creek Field, south of the GVU acreage. We look forward to working with Schlumberger to integrate these results as we further refine the GVU22-1 well trajectory.”