Rose Petroleum upbeat on results of Schlumberger study

7th Jan 2019 09:12

(Sharecast News) - Natural resources business Rose Petroleum updated the market on its operations for the Gunnison Valley Unit (GVU) in the Paradox Basin, Utah on Monday, reporting that the fracture characterisation study undertaken by Schlumberger had now been completed.The AIM-traded firm said that, in the detailed analysis of the proposed well GVU22-1, the models of the combined fracture sets developed in the study showed that the well was "situated optimally" to capture the fold and fault related fractures.It said the study also stated that it was expected that both fault and fold related fracture sets were viable from the geomechanical modeling.The results described that fractures were more intensely developed across the fold axes, and as expected, were not uniformly distributed across the field area, which strongly validated the use of 3D seismic in the basin.Rose said the strongest fracture development was along the WNW-ESE folds, and at the intersection with those folds oriented NW-SE.The study further suggested that the seismic attributes evaluated were likely to reflect potential fracture networks, the board said, adding that they should be used in combination with the geomechanical modelling to select areas with a higher probability of stronger fracture intensity to assist with well location selection in the future.The planned well location was also consistent with stronger amplitudes from the attribute mapping, which could correlate to fracture corridors."This study corroborates our internal work and is consistent with the work performed by Gaffney Cline & Associates for the competent persons report, announced on 22 June 2018," said Rose Petroleum chief executive officer Matthew Idiens."It reinforces the assessment of the Clastic 21 reservoir as a naturally fractured reservoir and illustrates the value of drilling the 22-1 well."Idiens said the well had been designed to assess the commercial viability of the Clastic 21 reservoir within the GVU area, and to test the potential for 90-day initial production rates of up to 1,600 barrels of oil equivalent per day, as seen at the Cane Creek Field, south of the GVU acreage."We look forward to working with Schlumberger to integrate these results as we further refine the GVU22-1 well trajectory."