24 May 2019 07:00
24 May 2019
Rose Petroleum plc
("Rose", the "Company" or the "Group")
Completion of subscription, board appointment and change to total voting rights
Rose Petroleum plc (AIM: ROSE), the AIM-quoted natural resources business, is pleased to confirm the receipt of £300,000 pursuant to the subscription for 25,000,000 new ordinary shares (the "New Ordinary Shares") at 1.2p per share, details of which were announced on 20 May 2019 (the "Fundraise").
In addition, the Company is pleased to confirm the appointment of Colin Harrington as Executive Chairman of the Company, effective immediately.
Application has been made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM ("Admission"). It is anticipated that the New Ordinary Shares will be issued and Admission will take place on or around 30 May 2019.
Upon Admission, Origin Creek Energy LLC ("OCE") will have an interest in 25,000,000 ordinary shares of the Company, equivalent to 14.84% of the Company's as enlarged issued share capital. Colin Harrington is indirectly the controlling shareholder of OCE.
Matthew Idiens, CEO of Rose, comments: "We are delighted to welcome Colin to Rose as a director and substantial shareholder. Colin brings a wealth of experience to the Company as it evolves and refines its growth strategy.
"Rose continues to engage with prospective farm-in partners for its Gunnison Valley property in Utah, USA, as well as screening other opportunities which offer a route to establishing cash generative production in the near term. With interim funding now in place and the assistance of the new Board members and advisers, the Company will continue to work on identifying the optimal path to deliver shareholder value."
Board appointment - regulatory disclosures
Mr John Colin Harrington, aged 45, holds and has held over the last five years the following directorships:
Current directorships held | Directorships held within the last five years
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Origin Creek Energy LLC Origin Creek PartnersFund I LLC Needham Ventures Limited Captiva Energy Holdings LLC Captiva Energy Holdings II LLC
| Draketail Ventures, Inc. MMXII Holdings, Inc. (trading as: Wynbi Inc.) |
Colin Harrington is also a member of the board of trustees of The Key School, a not-for-profit school in the USA.
Total Voting rights
Upon Admission, the issued share capital of the Company will comprise 168,413,940 Ordinary Shares with one voting right per share. The Company does not hold any shares in treasury. Therefore, following Admission, the total number of Ordinary Shares and voting rights in the Company will be 168,413,940. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
Contacts:
Rose Petroleum plc Matthew Idiens (CEO) Chris Eadie (CFO)
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Tel: +44 (0)20 7225 4595 Tel: +44 (0)20 7225 4599 |
Allenby Capital Limited - AIM Nominated Adviser Jeremy Porter / James Reeve / Liz Kirchner
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Tel: +44 (0)20 3328 5656
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Cantor Fitzgerald Europe - Financial Adviser and Joint Broker David Porter
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Tel: +44 (0)20 7894 7686
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Novum Securities Limited - Joint Broker Colin Rowbury |
Tel: +44 (0)20 7399 9427
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Turner Pope Investments - Joint Broker Andy Thacker
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Tel: +44 (0)20 3621 4120 |
Media enquiries:
Allerton Communications | Tel: +44 (0) 20 3633 1730 |
Peter Curtain | peter.curtain@allertoncomms.co.uk |
Notes to editors
Rose Petroleum plc (http://rosepetroleum.com) is a North America-focused oil and gas company whose primary asset is approximately 80,000 net acres in the prolific oil and gas producing Paradox Basin in Utah, U.S.A., where it is earning into a 75% working interest. Using high-quality data gathered in a 3D seismic survey completed in October 2017, the Company has identified drilling locations in naturally fractured areas of the Paradox Formation and has chosen the first well location and it is now permitted to drill and plans to commence the drilling programme and the first well as soon as possible, subject to rig availability, stipulations of the leases, BLM Unit obligations and financing.
On 22 June 2018, Rose announced a Competent Person's Report ("CPR") and Maiden Contingent Resource by Gaffney Cline & Associates ("GCA") on the Rose acreage covered by the 3D seismic, approximately 17,250 acres of the 80,000 acres held. The CPR estimated a 2C Contingent Resource, net to Rose, of 9.25 MMBbl of oil and 18.50 Bscf of gas, and an unrisked pre-tax Net Present Value (NPV10) on the 2C Resources, net to Rose, of US$122 million. The CPR focused solely on one single reservoir - the Cane Creek reservoir (the "CCR" or "Clastic 21") - of the multiple prospective reservoirs within the Paradox Formation.
The Company's established management is supported by an expert technical team with extensive experience of the basin, where current operations nearby have proven successful, with significant initial production rates and low decline rates, offering strong economics even in the present oil price environment.
The Company's strategy is to grow both organically and through acquisition, identifying additional hydrocarbon assets, conventional or unconventional, that would benefit from the Company's fast-acting, entrepreneurial approach.
Rose Petroleum has been quoted on AIM since June 2004.