Business
Update on Operations and Assets
Update on Operations and Assets.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \nRNS Number : 4349W Rose Petroleum PLC 27 April 2016 \n\nRose Petroleum plc\n(\"Rose\", the \"Company\" or the \"Group\")\n \nUpdate on Operations and Assets\nDe-risking of portfolio and reduction of cost base\n \nRose Petroleum plc, the AIM-quoted (AIM: ROSE) natural resources company, is pleased to provide an operational update on the current activities taking place within both its Oil and Gas and Mining divisions.\n \nIn overview, given the very challenging market conditions, the board of directors of the Company (the \"Board\") has taken major steps to reduce costs and liabilities across the Group to enable the Company to weather the current market conditions and to position the Company for the recovery. Whilst doing this the Board has been seeking and reviewing additional opportunities which it believes could offer substantial value to shareholders.\n \nHighlights:\n· Strategic review of Group assets with a view to conserving existing cash and de-risking the asset portfolio\n· Disposal of Cisco Dome field and, with it, the associated plug and abandonment liability on over 50 wells and termination of Mancos earn-in\n· Focus on larger, more prospective Paradox acreage and reduction of Paradox earn-in threshold by US$2m to US$5.5m\n· Partner secured on the Ardmore Copper Project and drilling underway\n· Significant reduction of Group and Head Office operational costs and a reduction of Group liabilities\n \nUS Oil and Gas Operations\n \nBackground\n \nDuring the strong oil price environment of 2014 and early 2015, the Group entered into agreements under which it was able to earn into a 75% working interest in approximately 263,000 gross acres in Utah. The area of focus of the acreage is on two unconventional oil and gas basins: the Uinta Basin, which targets the Mancos Shale at a maximum depth of approximately 3,200ft, and the Paradox Basin that targets the Paradox Clastics at a maximum depth of approximately 10,500ft. \n \nUnder the terms of the purchase agreements, Rose carries the seller, Rockies Standard Oil Company LLC (\"RSOC\"), which retains a 25% working interest in the leasehold, for the first US$17m expenditure on the projects: US$9.5m in the ...