(Alliance News) - Rose Petroleum PLC said Monday it raised GBP1.3 million through a discounted share placing in order to fund development of a newly-acquired interest in a Colorado oil & gas lease as well as funding existing operations.
Rose proposed to issue 113.6 million shares at 1.1 pence per share. Shares in Rose were 4.2% lower at 1.24 pence in London on Monday.
The funds will be partly used to fund its capital expenditure obligations following its acquisition of a 10% interest in the McCoy lease in the Denver-Julesburg Basin in Colorado for USD270,000 from Captiva Energy Holdings II LLC, paid entirely through shares issued at 1.32 pence per share.
Rose also has the option to buy up to a further 80% interest in the McCoy lease.
"This successful fundraising is an important step as we advance our strategy of building a balanced asset portfolio in the US Rocky Mountain region," Chief Executive Officer Colin Harrington said.
"It enables us to enter the prolific Denver-Julesburg Basin through helping fund the near-term development project on the proposed McCoy lease acquisition announced today, and it allows us to fund ongoing work at our newly restructured Paradox Basin project," Harrington added.
By Ahren Lester; ahrenlester@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
