Business
Update on restructuring of the Paradox project
Update on restructuring of the Paradox project.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \nRNS Number : 4108C Rose Petroleum PLC 10 February 2020 \n\nPrior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\"). With the publication of this announcement, this information is now considered to be in the public domain.\n \nRose Petroleum plc\n(\"Rose\" or the \"Company\")\n \nUpdate on restructuring of the Paradox project\n \nRose Petroleum plc (AIM: ROSE), the Rocky Mountain-focused oil and gas company, is pleased to provide an update on the restructuring of its project in the Paradox Basin, Utah, U.S. (the \"project\") further to its announcement on 14 October 2019. \n \nHighlights:\n \n· Rose has been granted regulatory approval by the U.S. Bureau of Land Management (the \"BLM\") for two year lease extensions on circa 11,300 acres within the core of its project area.\n· The Company now holds a focused and contiguous land position of circa 19,900 acres with extended lease terms (as set out in note 1 below)1, the majority of which is covered by Rose's proprietary 3D seismic survey which was completed in 2018.\n· Rose gains an immediate 75% working interest in and operatorship of the extended acreage, rather than the earn-in structure through which the leases were formerly held. \n· There are no acquisition costs related to the extended acreage, and Rose will continue to make lease payments on the extended acreage. Overall lease payments have been substantially reduced via the restructuring now that non-core acreage has been relinquished.\n· The restructured project has estimated net 2C Contingent Recoverable Resources of circa 9 million barrels of oil equivalent (\"mmboe\") solely within the Cane Creek reservoir(2) with further exploration potential to be found in 5 shallower reservoir intervals.\n \n \nColin Harrington, Chief Executive Officer, stated: \n \n\"With the project JV agreement successfully renegotiated, the project land position now restructured and an increase in term now secured, we are in a strong position to recommence our farm-in process.\n \n\"The restructured project, combined with the increased focus that...