Rockrose pulls out of Maersk Transaction for Scott and Telford fields

The directors of Rockrose have announced 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. Commitments from Shareholders representing more than 50% of the issued share capital of the Company in support of the Resolutions have been received. 

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Rockrose also announced it has withdrawn from the negotiations with Maersk Oil North Sea UK Limited to acquire the interests in the Scott and Telford fields (the "Maersk Transaction").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."