logo-loader
viewRose Petroleum PLC

Rose Petroleum restructures Paradox venture to focus on “high priority” targets

"I believe this restructuring will make the project more attractive to potential investors as we continue with our farm-in process,” said chief executive Colin Harrington.

Rose Petroleum PLC - Rose Petroleum restructures Paradox venture to focus on “high priority” targets
It is focusing on 21 priority targets in the Paradox basin

Rose Petroleum PLC (LON:ROSE) has revealed a restructuring of its Paradox basin venture which, according to management, is now “better positioned for development”.

The company, which itself was recently restructured, highlighted in a statement on Monday that a new agreement with joint venture partner Rockies Standard Oil Corporation (RSOC) allows Rose to focus on a potentially highly economic core acreage position of circa 12,920 acres.

This area is host to 21 “high priority” drill targets representing some 8.3mln barrels of oil equivalent contingent resources, valued at around US$59mln net to Rose – which would be a significant premium to the current market value of £2.48mln.

READ: Rose ‘excited’ for next steps in transition

The new agreement also reduces overall costs for maintaining the project and a “immediate ownership” of the highest potential acres.

It detailed, the new agreement enables Rose to gain an immediate 75% working interest ownership and operatorship of key acreage, replacing the earn-in structure in the original agreement with RSOC.

Rose will maintain the original obligation to carry RSOC for a 25% working interest on the first well, and, commits to carry RSOC for a 25% working interest for the acquisition of specific targeted leases in and around the core acreage area, up to a total cost of US$500,000.

The AIM-quoted firm has terminated its rights for less prospective acreage and has reassigned those rights back to RSOC. 

Colin Harrington, who became Rose chief executive in September, today said: “By focusing on highest potential acreage, the company maintains a project of real scale and value while reducing its on-going running costs and extending project term. 

“Most importantly, the company will also gain immediate ownership of core acreage and will become operator across the project.  I believe this restructuring will make the project more attractive to potential investors as we continue with our farm-in process.”

He added: "In the board's view, the high-grading of the project will create a long-term future for the project, one which meets the board's selection criteria and which will positively complement the company's future balanced asset portfolio."

Quick facts: Rose Petroleum PLC

Price: 1.1 GBX

AIM:ROSE
Market: AIM
Market Cap: £3.16 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Rose Petroleum PLC named herein, including the promotion by the Company of Rose Petroleum PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Rose Petroleum announces CPR results for Paradox basin in Utah

Matthew Idiens, chief executive officer of Rose Petroleum PLC (LON:ROSE) tells Proactive that the company has presented a new competent person's report (CPR) assessing its Paradox basin in Utah, United States. “We’ve put a lot of effort into the geological assessment and these were...

on 22/6/18

2 min read