26 Jan 2018 07:00
26 January 2018
Rockrose Energy plc
("Rockrose" or the "Company")
Company Update & Notice of General Meeting
The directors of Rockrose (the "Directors") are pleased to announce the intention of the Company to return capital of £1.50 per share (the "Return of Capital"). This payment will be paid by means of a "B" share scheme which will require the passing of ordinary resolutions (the "Resolutions") at a general meeting (the "General Meeting") of the shareholders of the Company (the "Shareholders") to be held at 10:30 a.m. on 14 February 2018 at the offices of Cooley (UK) LLP at Dashwood, 69 Old Broad Street, London EC2M 1QS. Commitments from Shareholders representing more than 50% of the issued share capital of the Company in support of the Resolutions have been received. Notice of the General Meeting is being sent to all Shareholders today and has been posted on the Company's website (www.rockroseenergy.com).
As at the date of this announcement, the Company has cash and facilities available in excess of $127 million of which $40 million is considered by the Company to be restricted cash as it is posted in support of decommissioning security agreements. The opex per barrel on the Company's existing assets is below $30 per boe. With G&A around $3 per barrel, the Company is cash generative. Production guidance for 2018 remains around 5,250 boepd.
The Directors have expressed an intention to consider an annual dividend and are also implementing a hedging strategy in response to the recent rise in the price of oil.
Rockrose also today announces it has withdrawn from the negotiations with Maersk Oil North Sea UK Limited to acquire the interests in the Scott and Telford fields (the "Maersk Transaction"). Despite support from the OGA, the gaining of partner consent would have required material changes to the terms of the Maersk Transaction which would have made it unattractive to Shareholders.
Rockrose is actively involved in reviewing several other potential transactions having now closed the acquisitions of Idemitsu Petroleum UK Limited, Egerton Energy Ventures Limited and Sojitz Energy Project Limited.
Executive Chairman Andrew Austin said:
"We would like to thank our Shareholders for their support. With a solid core production base and a strong balance sheet, we are well placed to continue to grow the business and consider further returns of capital to shareholders.
"Rockrose, in line with its corporate strategy, is actively involved in reviewing several other potential transactions, in addition to investment in organic growth opportunities that exist within the asset portfolio that has been acquired."
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014. The person who arranged for the release of this announcement on behalf of the Company was Andrew Austin, Executive Chairman.
Certain statements in this announcement constitute ''forward-looking statements''. Forward-looking statements include statements concerning the plans, objectives, goals, strategies and future operations and performance of the Company and the assumptions underlying these forward-looking statements. The Company uses the words ''anticipates'', ''estimates'', ''expects'', ''believes'', ''intends'', ''plans'', ''may'', ''will'', ''should'', and any similar expressions to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the Company's actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company is not obliged, and does not intend, to update or to revise any forward-looking statements, whether as a result of new information, future events or otherwise except to the extent required by any applicable law or regulation. All subsequent written or oral forward-looking statements attributable to the Company, or persons acting on behalf of the Company, are expressly qualified in their entirety by the cautionary statements contained throughout this announcement. As a result of these risks, uncertainties and assumptions, a prospective investor should not place undue reliance on these forward-looking statements.
Ends
Enquiries:
Rockrose Energy plc +44 (0)20 3826 4800
Broker Hannam & Partners (Advisory) LLP
Giles Fitzpatrick / Andrew Chubb +44 (0)20 7907 8500
Financial PRCamarco
Billy Clegg +44 (0)20 3757 4980
Owen Roberts
Ollie Head
For further information, please visit the Company's website at www.rockroseenergy.com.