RockRose Energy plc Completion of Acquisition (0065E)
July 01 2019 - 5:00AM
UK Regulatory
TIDMRRE
RNS Number : 0065E
RockRose Energy plc
01 July 2019
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE
COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU
MARKET ABUSE REGULATION (596/2014). UPON PUBLICATION OF THE
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
1 July 2019
RockRose Energy plc
("RockRose"or the "Company")
Completion of acquisition of 100% of Marathon Oil U.K. LLC and
100% of Marathon West of Shetland Limited
Material uplift in reserves and production
RockRose, the independent oil and gas company, is pleased to
announce that it has now completed the acquisition of 100% of
Marathon Oil U.K. LLC ("MOUK") and 100% of Marathon Oil West of
Shetland Limited ("MOWOS") from subsidiaries of Marathon Oil
Corporation ("Marathon Oil") (the "Acquisition").
The $95 million payable by RockRose to Marathon Oil in
connection with the Acquisition was funded through existing
resources and facilities.
MOUK holds interests of 26.0% in licence P313 and 40.0% in
licences P340 and P108, which together comprise the Greater Brae
Area. MOWOS holds a 28.0% interest in the BP-operated Foinaven
field as well as interests in the Foinaven East, T25, and T35
satellite accumulations. The Acquisition also includes interests in
the SAGE, Brae-Forties and WOSPS infrastructure, which provide
additional tariff income.
This Acquisition has added circa 28.4 million boe of 2P
reserves, increasing the Company's total 2P reserves to 62.9
million boe (as at 31 March 2019, as assessed by ERC Equipoise) and
2P reserves plus 2C contingent resources of 87.6 million boe (the
2C being an internal RockRose estimate). Production for the assets
being acquired is circa 11,000 boepd in 2019 to date, taking
RockRose's total net production for 2019 to date to circa 22,000
boepd on a pro forma basis.
The MOUK and MOWOS assets and teams in Aberdeen, Peterhead and
offshore have also transferred to RockRose.
The Acquisition constituted a reverse takeover for the purposes
of the UK Financial Conduct Authority's Listing Rules, in
accordance with Listing Rule 5.1 the Company requested that the
Company's ordinary shares be suspended from listing on the Official
List pending the publication of a prospectus. The prospectus is
expected to be published later this month, at which time the
Company's ordinary shares will recommence trading on the Official
List.
At financial close, the total cash on the balance sheet of the
enlarged Company is approximately US$370 million, of which US$91
million is restricted.
RockRose Executive Chairman, Andrew Austin said:
"I am delighted to confirm the completion of our Marathon
acquisition. The quality of the assets and team materially
strengthens Rockrose, with a significant uplift in our reserves and
production and marks a significant step towards our strategic
ambition of having operations of scale in the North Sea.
"I would like to welcome the Marathon Oil UK employees to
RockRose. The team has an excellent track record and we look
forward to continuing safe operations of the acquired assets. We
remain focused on growing the value of RockRose, not only through
the ongoing development of the enlarged portfolio, but also through
value accretive acquisition opportunities in the future."
End
The person who arranged for the release of this announcement on
behalf of the Company was Andrew Austin, Executive Chairman.
Enquiries:
Rockrose Energy plc +44 (0)20 3826 4800
Financial Adviser and Joint Broker:
Hannam & Partners (Advisory) LLP
Giles Fitzpatrick / Andrew Chubb +44 (0)20 7907 8500
Joint Broker:
Cantor Fitzgerald
David Porter +44 (0)20 7894 7000
Financial PR:
Celicourt
Mark Antelme / Ollie Mills +44 (0)20 7520 9261
For further information, please visit the Company's website at
www.rockroseenergy.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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