Rose Petroleum plc

Updated Ryder Scott Mancos Resource Estimate

7-November-2014

Ryder Scott Company LP has issued its updated Certified Resource Estimates

Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce that Ryder Scott Company LP ("Ryder Scott") has issued its Certified Resource Estimates on the assets recently acquired by Rose in the Cisco Dome Field, located in the Company's Mancos Development Area in the Uinta Basin, eastern Utah, USA ("Cisco").

The full Ryder Scott update report and maps are available on the Company's website, www.rosepetroleum.com.

Highlights

  • Ryder Scott's Best (Mid-Case) Gross Unrisked Prospective Recoverable Resource Estimates for the Mancos on the Cisco acreage is 31.30 MMBO (million barrels of oil) and 187.47 BCFG (billion cubic feet gas)
  • These additional Mancos Resources Estimates bring Ryder Scott's total Best (Mid-Case) Gross Unrisked Prospective Recoverable Resource Estimates for Rose to 517.79 MMBO and 3,090.86 BCFG in its Mancos development area
  • Ryder Scott has been instructed to prepare an additional Reserve Estimate on these assets from the existing conventional production which Rose will release during the next quarter

Group CEO Matthew Idiens commented: "We are pleased to add these additional certified Resources Estimates to our already significant Mancos Resource Estimates and look forward to announcing a further update on the conventional production also acquired in the Cisco deal in the coming months, once completed by Ryder Scott. As we plan to spud our first well in the Uinta basin by year end, the coming months should be transitional for Rose and we look forward to updating the market as we advance the projects." Idiens added: "In addition to the increase in resources it is worth reiterating that, even with the present weakness in the oil price, both the Paradox and Mancos potentially offer excellent economics with both projects having Finding and Development Costs of less than US$20/BOE."

As previously announced last month, Rose acquired 100% of SEP-Cisco Dome LLC's assets in the Cisco Dome Field for US$1.5m. As this acquisition falls within Rose's Joint Venture Area with Rockies Standard Oil Company ("RSOC"), Rose owns 75% of the assets and RSOC the remaining 25%. This acquisition also reduces Rose's US$9.5m Carry Obligation in the Uinta Basin (Mancos) under the Joint Venture by the purchase price (US$1.5m).

Aside from the production and midstream gathering and gas processing system, the acquisition also provides Rose with 11,000.02 gross / 8,250.02 net acres of highly prospective Mancos acreage, of which 71% of this acreage is Held-By-Production from the Cisco Dome Field with the balance having 10 years primary term. This newly acquired leasehold is immediately adjacent to Rose's existing Mancos acreage.

Ryder Scott's Best (Mid-Case) Gross Unrisked Prospective Recoverable Resource Estimates for the Mancos on this new acreage is 31.30 MMBO and 187.47 BCFG. These additional Mancos Resources Estimates bring Rose's total Best (Mid-Case) Gross Unrisked Prospective Recoverable Resource Estimates to 517.79 MMBO and 3,090.86 BCFG in its Mancos Development Area.

Rose is now assembling the necessary data for Ryder Scott to provide its additional Reserve Estimates on these assets from the existing conventional production which the Company will release during the next quarter. 

John Blair (BSc Geology and MSc Geophysics), Director of Oil & Gas for Rose Petroleum plc, who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement.

TABLE 1 - Estimated 100% Gross Volumes Unrisked Undiscovered original hydrocarbons in place in the Mancos Shale leasehold interests of Rose as at 31 October 2014
 
Prospect / Formation
OOIP - MMBO
OGIP - BCF
P90
P50
P10
MEAN
P90
P50
P10
MEAN
Summit Acreage
 
 
 
 
 
 
 
 
M-400
300
508
835
546
1,766
3,029
5,104
3,274
M-300
160
210
257
211
909
1,249
1,609
1,266
M-200
133
172
211
172
757
1,019
1,335
1,034
M-150
78
100
125
101
447
594
787
606
M-100
88
114
145
116
493
682
907
696
Totals
759
1,105
1,574
1,147
4,371
6,574
9,742
6,876
 
TABLE 2 - Estimated 100% Gross Volumes Unrisked Prospective (Recoverable) Hydrocarbon Resources in the Mancos Shale leasehold interests of Rose as at 31 October 2014
 
Prospect / Formation
EUR Oil/Condensate - MMBO
EUR Gas - BCF
 
COS
Low
Best
High
MEAN
Low
Best
High
MEAN
Summit Acreage
 
 
 
 
 
 
 
 
 
M-400
4.37
14.68
42.17
20.71
26.57
88.45
250.97
124.15
0.3
M-300
1.98
5.90
16.72
8.04
11.31
34.70
100.49
48.40
0.3
M-200
1.59
4.67
13.69
6.61
9.44
28.49
82.94
39.55
0.3
M-150
0.96
2.82
7.72
3.87
5.80
16.75
46.94
23.08
0.3
M-100
1.10
3.22
9.38
4.45
6.36
19.07
56.37
26.51
0.3
Totals
10.00
31.30
89.68
43.67
59.47
187.47
537.71
261.69