RockRose Energy plc Operations Update (6370H)
26 March 2020 - 6:00PM
UK Regulatory
TIDMRRE
RNS Number : 6370H
RockRose Energy plc
26 March 2020
FOR IMMEDIATE RELEASE 26 March, 2020
ROCKROSE ENERGY PLC
("RockRose")
Operations Update
As previously announced, the FCA's moratorium on publishing
financial statements means that RockRose Energy plc ("RockRose" or
"the Company"), the independent oil and gas production company, has
been unable to publish its 2019 Annual Report and Financial
Statements today as planned. In view of this, the Company is
pleased to provide the following operations update.
The Company remains well positioned, despite current oil market
uncertainties. RockRose has a strong balance sheet, with no debt
and cash at the close of business on 25(th) March 2020 of GBP287
million (GBP248 million unrestricted), equivalent to GBP21.89 per
share. RockRose was listed on the London Stock Exchange in January
2016, when Brent crude traded below $30/bbl, and has remained
focused on being able to operate in a low oil price environment.
Currently we anticipate unit operating costs of c.$30/boe in
2020.
The Company has hedging in place to support its current capital
expenditure commitments. RockRose hedged 455,000 barrels of oil
hedged at $65.70 per barrel for Q1 2020 and 63 million therms of
gas at EUR0.53 per therm (49p/therm) for calendar 2020. Looking
further ahead, an additional 54 million therms has been hedged in
each of 2021 and 2022 at EUR0.41 and EUR0.45 per therm (38p and
42p) respectively.
The Company has previously guided that capital expenditure in
2020 would be c.$200 million, with much of that earmarked for the
development of the Shell-operated Arran gas/condensate field.
However, other discretionary spending is being reviewed and it is
anticipated that at least $50 million of this capital expenditure
will be deferred, a drop of 25% and in line with other
businesses.
Based on the strength of the Company's cash position, the
hedging it has in place, and the flexibility of its capital
expenditure commitments, the Board of Directors still expects to
recommend the payment of a final dividend of 25p per share,
bringing the total for 2019 to 85p.
The Company has not experienced an adverse impact on its
operations as a result of COVID-19. The precautionary and
contingency measures that have been put in place, on both operated
and non-operated assets, are working well. In the Brae field, which
we operate, we currently have no staff with symptoms and no staff
in isolation. The safety and wellbeing of the Company's staff
remains of paramount importance and RockRose is working closely
with the authorities and other operators on this matter.
A further announcement regarding our final results will be made
once a revised date for publication has been determined, following
consultation with the FCA and our advisors.
Commenting, Andrew Austin, Rockrose, Executive Chairman,
said:
"Following the FCA's request for a short-term moratorium on the
publication of preliminary financial statements, I wanted to take
this opportunity to update and reassure investors and staff of the
Company's strength in what are unprecedented times.
RockRose remains well placed to navigate the current economic
situation, with the business underpinned by a strong balance sheet,
hedging, and management's ability to reduce capital expenditure
this year and next, if required."
-ENDS-
Enquiries:
Rockrose Energy plc +44 (0)20 3826 4800
Financial Advisor:
Hannam & Partners (Advisory) LLP
Giles Fitzpatrick / Andrew Chubb +44 (0)20 7907 8500
Brokers:
Whitman Howard
Hugh Rich / Nick Lovering +44 (0)20 7659 1261 / 1224
Financial PR:
Celicourt
Mark Antelme / Philip Dennis /
Ollie Mills
www.rockroseenergy.com +44 (0)20 8434 2643
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END
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