LONDON (ShareCast) - Shares in Rose Petroleum more than doubled in value on Friday morning after the group revealed strong economic analysis and reserve reports for its projects in Utah.

The reserve report showed that the Mancos and Paradox oil and gas projects, in which Rose, through its Utah subsidiary, holds a 75% working interest, showed that the projects offer "significant production potential".

Chief Executive Officer Matthew Idiens said: "The resource is presently categorised as prospective resources which, as stated by the report, is based on the current lack of drilling directly on Rose's leases.

"However, given that multiple wells in the surrounding area to Rose's Leases have produced oil and gas to surface from various Paradox Clastics, as have several shallow unstimulated vertical open hole wells in the Mancos shale, we believe that the project is extremely exciting and has the potential to dramatically change the outlook for Rose."

The economic analysis estimated Cane Creek in the Paradox basin had a 30-year life of field net present value (NPV) of $1.47bn, while Mancos's NPV was estimated at $941m.

Idiens continued, saying the figures "show the potential size of the project and the models have been created using conservative assumptions on development role out and costs".

"With both basins being actively developed the infrastructure available to us is excellent with road, rail, pipeline, power, etc. are all readily available. The leases are also in an ideal location being only about an hour's drive to Grand Junction, which is the region's oil & gas services hub offering drill rigs, fraccing equipment, etc. Basically, we could not be better set."

The share price soared 127.57% to 2.11p by 12:27.

NR

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