Rockrose Energy: Directors Announce Company's Intention to Return Capital of £1.50 per Share
Friday 26 January 2018
The directors of Rockrose are pleased to announce the intention of the Company to return capital of £1.50 per share. This payment will be paid by means of a "B" share scheme which will require the passing of ordinary resolutions at a general meeting of the shareholders of the Company to be held at 10:30 a.m. on 14 February 2018 at the offices of Cooley (UK) LLP. 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 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Rockrose also today announces it has withdrawn from the negotiations with Maersk Oil North Sea UK Limited to acquire the interests in the Scott and Telford fields. 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.