Thursday 24 May 2018

RockRose Energy plc announced that it has signed a Sale and Purchase Agreement to acquire the entire issued and to be issued share capital of Dyas B.V., which owns the non-operated, Netherlands gas and condensate producing assets of the Dyas group of companies, for a total consideration of EUR €107 million. The Dyas group of companies is wholly owned by SHV Holdings N.V., a family-owned Dutch multinational.

The Acquisition, which has an effective date of 1st January 2018, will be funded from existing cash resources with no debt or equity issuance or shareholder approval required. There will be a significant working capital adjustment at completion.

The Acquisition adds a further 13 MMboe net developed reserves (with material undeveloped and prospective resource upside) and over 5,000 boepd of production to the Group. Post completion RockRose estimates combined Group 1P reserves of approximately 23 MMboe and 2018 pro-forma production in excess of 10,000 boepd. The Group's production will be circa 60% gas and 40% oil.

Both the existing asset base and those assets to be acquired have incremental opportunities which the Board believe could add significantly to the Group's reserve base and maintain current production for at least the next five years, with Rockrose's portion of the associated capex to be funded from the Group's operating cash flow.