Rose Petroleum plc

Rose Petroleum (ROSE.L, 2.95p) - Speculative Buy


Updated research issued by Beaufort Securities

Rose Petroleum provided the certified resource estimates on the assets in the Cisco Dome Field of Mancos Development Area, located in the Uinta Basin. The assessment conducted by Ryder Scott Company put the gross un-risked prospective recoverable resource estimates for the acreage at 31.3 million barrels of oil (mmbo) and 187.5 billion cubic feet (bcf) of gas. These additional resources take up the total tally of Rose’s gross un-risked prospective recoverable resource estimates to 517.8 mmbo and 3,090.9 bcf of gas in the Mancos development area.

Our view: The recent acquisition of the Cisco dome field has yielded positive results for Rose Petroleum. With the latest addition of resources in the Mancos area, the company has strongly reinforced its strategy to shift focus to the shale gas production in Utah. Off-late the company reshuffled its portfolio significantly to withdraw its unconventional hydrocarbons licenses in Germany and increase its asset base in the Uinta region. On the other hand, the company has taken up several non-cost bearing joint ventures to upgrade its mining resources and also commenced drilling at the copper project in New Mexico. We are confident that the company is on the right growth track and is capable of delivering positive returns to its shareholders in future. Thus, in view of the above positives we reiterate our Speculative buy rating.