(Alliance News) - Natural resources firm Rose Petroleum PLC on Monday said it is in an exclusivity agreement for a potential acquisition that meets its criteria.
The company has been targetting a potential acquisition in Utah, Colorado or Wyoming, in the Rocky Mountain region of the US, which can be "cash flow generative within 12 months".
Rose explained: "While there is no guarantee that the company's ongoing discussions will lead to a transaction, the board is highly encouraged by recent progress and believes that the new strategy of the company provides investors with near-term opportunities for growth."
The company also reported a widened year-on-year pretax loss to USD817,000 from USD541,000 in the six months to June 30.
Rose trimmed its administrative costs by 18% to USD824,000 from USD1.0 million, but foreign exchange gains reduced by 73% to USD459,000 from USD126,000 in the first six months of 2018.
Looking ahead, the company will focus on inking an acquisition that meets its criteria while also securing "longer-term value" from its existing Paradox Basin asset in the US.
Chief Executive Colin Harrington said: "I now believe we have positioned the company to deliver growth from both its existing portfolio and from carefully targeted acquisitions, and I'm excited about the next steps in our process of transformation."
Shares in Rose Petroleum were 5.5% lower at 1.46 pence each in London on Tuesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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