Rose Petroleum tanks as it scales back Utah drilling plans

21st Aug 2015 09:21

(ShareCast News) - Rose Petroleum shares slumped after the company said it will scale back its drilling plans in Utah due to lower global oil prices. Earlier this year, Rose began the process of permitting six well locations in the Mancos Formation in the Uinta Basi in Utah. However, as a result of weaker oil prices and a focus to deliver a campaign that maximises value for shareholders, the company has decided to stick with just one permit initially, within the Cisco Dome area.Chief executive officer Matthew Idiens said: "We believe this initiative will better deliver value for shareholders, particularly at current oil prices, from which we can roll out further initiatives across our licence."With production in place from both this well and potentially, a new asset, we would be in a much stronger position to develop our current exploration portfolio, which benefits from a low breakeven price."In addition, Rose said it is assessing opportunities to introduce productive assets to its portfolio and has engaged Jefferies International and Wellford Capital markets to assist in the evaluation and funding of any assets which may fit its criteria.At 1000 BST, Rose shares were down 11.1% at 0.20p.