RockRose Energy plc - Trading Update
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· Group production in line with expectations year-to-date.
· Capital expenditure budget for 2020 cut by 40% since mid-March.
· Total expenditure in 2020 now expected to be over
· RockRose-operated West Brae infill wells completed safely and within budget.
· Completed the acquisition of 100% of the Cotton gas discovery.
· Group production year-to-date in 2020 has averaged 20,800 boepd, in line with expectations. UK output has averaged 14,900 boepd and Netherlands output has averaged 5,900 boepd.
· As operator of the West Brae oil field with a 40% working interest, RockRose has completed the drilling of two infill wells safely and within budget.
· The first of those wells, designated WPGZ, was brought onstream in March and currently is producing approximately 4,000 bopd (~1,600 bopd net to RockRose).
· The second West Brae infill well, designated WPOZ, encountered the target horizon deeper than prognosed and it is water wet at this location. After interpreting the data from the well and in view of the current low commodity price environment, the partnership elected not to drill a horizontal section to a secondary target location and the well has been suspended.
· The Seven Borealis pipelay and heavy lift vessel is mobilising to the Shell-operated Arran gas / condensate field and is expected to commence laying the 55km pipeline to the Shearwater platform shortly.
· This pipeline will connect the two Arran drill centres/subsea manifolds to the Shearwater facilities for processing and export and is a key milestone in the development. RockRose has a 30.4% interest in the 31 MMboe Arran field, which is forecast to come onstream in the second half of 2021.
· Completion of the acquisition of 100% of the Cotton gas discovery located in the
· RockRose continues to manage its operations carefully in response to COVID-19 and production has not been affected by the pandemic.
· We are working collaboratively with the OGA and the HSE, with industry bodies OGUK and Step Change, and with our joint venture partners to implement appropriate actions to mitigate the potential spread of the virus.
· Since mid-March and in conjunction with its partners, RockRose has taken action to reduce its capital expenditure in 2020 by
· Action to defer abandonment expenditure and cut operating expenditure is expected to result in a further reduction in 2020 cash costs of
· Approximately 20% of anticipated 2020 production hedged, comprising 455,000 bbl at
· Net cash of
· RockRose was designed to operate in the harsh environment of sub-$50 oil and the Company's robust balance sheet means it is well-placed to cope with the current downturn in oil and gas prices.
· Management has taken action to reduce expenditure by more than
· The deferral of certain activity combined with the WPOZ well result means that the Company now expects average production in 2020 to be about 20,000 boepd rather than 21,000 boepd.
Andrew Austin, Executive Chairman of RockRose Energy, commented today:
"Following a successful 2019, I am very pleased with the continued progress made by RockRose in the first quarter of 2020. Of course, the COVID-19 pandemic combined with low oil and gas prices have created a difficult environment and this is likely to persist for some months. However, the Company continues to deliver operationally and is well-placed to face these twin challenges thanks to its strong balance sheet and to the actions taken to reduce expenditure."
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+44 (0)20 3826 4800
Giles Fitzpatrick / Andrew Chubb
+44 (0)20 7907 8500
Hugh Rich / Nick Lovering
+44 (0)20 7659 1261 / 1224
Mark Antelme / Philip Dennis / Ollie Mills
+44 (0)20 8434 2643
For further information, please visit the Company's website at www.rockroseenergy.com
This information is provided by RNS, the news service of the
Quick facts: RockRose Energy PLC
Market Cap: £148.19 m
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