Rose Petroleum (Utah) LLC, the wholly owned U.S. subsidiary of London-based Rose Petroleum Plc (OTC: VNHLF, LSE: ROSE.L) acquired all the Uinta Basin assets of SEP-Cisco Dome LLC, a privately owned oil and gas operator, Rose Petroleum said Oct. 10. The assets also belong to “various other entities,” the company added.
The Uinta assets adjoin Rose Utah’s current 118,000-gross acre Mancos Shale project, the company noted.
For $1.5 million in cash, Rose Utah received midstream and upstream assets on about 11,000 leasehold acres. There are about 76 miles of gathering lines. There are 52 wells—17 producing and 35 shut-in—producing about 14 million cubic feet of gas and 110 barrels of oil and NGL per month, Rose Petroleum said.
Rose Utah has a working interest of roughly 99%, and an average net revenue interest of roughly 75%, Rose Petroleum added.
John Blair, CEO of Rose Utah, said, "this acquisition not only gives us all-important production and additional Mancos assets, but importantly it also gives us control of the local midstream gas system and, in turn, significant leverage for future acquisitions in the area. The acquisition also has the added benefit of providing us with the ability to control the transportation and processing of gas associated with our Mancos oil production.”
Rose Petroleum's CEO, Matthew Idiens, said, "We are extremely pleased to be able to update shareholders on this important acquisition which we view as a significant step in the process of establishing Rose as one of the leading operators in the area.”
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