Rose Petroleum has struck lucky with its State 1-34 well in the Mancos shale.
An analysis of the venture yielded positive findings which ‘correlate strongly or exceed’ the parameters of the large independent resource estimates.
The news comes as the firm prepares to issue £1bn worth of new shares, each priced at 0.3p, to institutional and other investors following a £3.1mln rise in equity fund.
The funds will support the development of projects in eastern Utah, including the Mancos shale.
Chief executive Matthew Idiens said he was feeling confident about the company’s horizontal well selections.
He added: “We are feeling ever more confident of the prospectivity of the Mancos Shale.
“Most importantly, overall the results match or exceed the key assumptions and estimates used by Ryder Scott in their resource calculations, thus giving further credence to their significant prospective recoverable resource numbers for the Mancos of 709MMbo and 4.26 TCF gas.
“We are now in a position to confidently define our first horizontal well location and with the permitting process underway we are excited about the months ahead as we anticipate spudding our first Mancos Shale well before the year end.”