TIDMROSE
RNS Number : 4842Z
Rose Petroleum PLC
20 May 2019
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
20 May 2019
Rose Petroleum plc
("Rose", the "Company" or the "Group")
Issue of equity and Board Changes
Rose Petroleum plc (AIM: ROSE), the AIM-quoted natural resources
business, provides an update on the subscription for 25,000,000 new
ordinary shares in the Company, as announced on 11 April 2019, and
the Board composition.
Highlights
-- GBP300,000 raised, before expenses, through a direct
subscription with the Company from Origin Creek Energy LLC ("OCE")
for 25,000,000 new ordinary shares in the Company at 1.2p per share
(the "Fundraise");
-- OCE is an investment firm focused on foundational public and
private investments in the onshore U.S. upstream sector, primarily
in the D-J and Marcellus basins;
-- The Fundraise replaces, at a premium, the subscription by
Robert Bensh for 25,000,000 new ordinary shares that was announced
on 11 April 2019 and which has now been cancelled;
-- Robert Bensh has left the Rose Board with immediate effect;
-- Colin Harrington, who is currently Chief Executive Officer of
OCE and has decades of U.S. onshore oil and gas experience, will be
joining the Rose Board as Executive Chairman.
The Fundraise
Rose has raised GBP300,000, before expenses, via a subscription
by OCE for 25,000,000 new ordinary shares (the "New Ordinary
Shares") at a price of 1.2 pence per share. The New Ordinary Shares
will be issued using the Company's existing share authorities and
will rank pari-passu with the existing ordinary shares of 0.1p each
in the Company ("Ordinary Shares").
The proceeds of the Fundraise will be used for general corporate
purposes including the appraisal of identified investment
opportunities within the Company's current portfolio of business
development projects.
Settlement of the Fundraise is expected to take place by 24 May
2019. Once the funds have been received by the Company, the Company
will proceed to issue the New Ordinary Shares and make application
to the London Stock Exchange for the New Ordinary Shares to be
admitted to trading on AIM ("Admission"). A further announcement
will be made at that time.
No new Ordinary Shares were issued pursuant to the fundraising
announced on 11 April 2019 which has now been cancelled, as
explained further below.
The Fundraise is conditional, among other things, upon Admission
becoming effective. Following Admission, the issued share capital
of the Company will comprise 168,413,940 Ordinary Shares with one
voting right per share.
Following Admission, OCE will have an interest in 25,000,000
Ordinary Shares, equivalent to 14.84% of the Company's enlarged
issued share capital.
Directorate changes
On 11 April 2019, the Company announced the appointment of
Robert Bensh to the Board as Executive Chairman, with immediate
effect. Since then, Mr Bensh has not met the full terms of his
irrevocable subscription commitment to the Company announced on 11
April 2019 and therefore that subscription has now been cancelled.
As a direct result of this Mr Bensh's position as Executive
Chairman of the Company has become untenable and he has therefore
left the Board with immediate effect.
The Company is delighted to announce that Mr Colin Harrington,
Chief Executive of OCE, will be joining the Company's Board as
Executive Chairman, subject to completion of the regulatory due
diligence process.
OCE makes $2-$20 million foundational investments in the
domestic US energy sector. The firm's capital is provided by its
partners and two affiliated family offices. As CEO of OCE, Colin
spearheaded the firm's efforts to originate and build value from
existing upstream investments in the Rockies and Marcellus
regions.
Colin began his career in energy finance in 1998, and previously
worked in New York, London, Washington DC and San Francisco. In
addition to his banking and investment management experience, he
founded several companies focused on both the traditional and
alternative energy sectors.
Prior to founding OCE, Colin was Managing Partner of the
Wellford Energy Group and former CEO of Wellford Capital Markets, a
FINRA-registered broker dealer. Prior to Wellford, Mr. Harrington
was Senior Vice President of Energy Investment Banking at FBR Group
in San Francisco.
Colin holds an MBA from the Wharton School and was a Hansard
Scholar at the London School of
Economics.
Matthew Idiens, CEO, Rose Petroleum plc, said: "I am delighted
to welcome OCE as significant shareholders in the Company and I
look forward to Colin Harrington joining the Board as Executive
Chairman. I believe that Colin's extensive regional and operational
expertise will be of great value to Rose as we look to optimise our
portfolio and unlock additional opportunities in the upcoming
months."
Colin Harrington, Executive Chairman designate of Rose Petroleum
plc, said: "Origin Creek's mandate is to provide capital, guidance
and a deep network of relationships to the companies in which we
choose to invest. I am very excited about the opportunity to join
the Rose Board at this pivotal stage in the Company's development,
and I look forward to working with Matt and the team in delivering
value to shareholders."
Contacts:
Tel: +44 (0)20 7225
Rose Petroleum plc 4595
Matthew Idiens (CEO) Tel: +44 (0)20 7225
Chris Eadie (CFO) 4599
Allenby Capital Limited - AIM Nominated Adviser
Jeremy Porter / James Reeve / Liz Kirchner Tel: +44 (0)20 3328
5656
Cantor Fitzgerald Europe - Financial Adviser
and Joint Broker Tel: +44 (0)131 257
Nick Tulloch 4634
David Porter Tel: +44 (0)20 7894
7686
Novum Securities Limited - Joint Broker
Colin Rowbury Tel: +44 (0)20 7399
9427
Turner Pope Investments - Joint Broker
Andy Thacker Tel: +44 (0)20 3621
4120
Media enquiries:
Allerton Communications Tel: +44 (0) 20 3633 1730
Peter Curtain peter.curtain@allertoncomms.co.uk
Notes to editors
Rose Petroleum plc (http://rosepetroleum.com) is a North
America-focused oil and gas company whose primary asset is
approximately 80,000 net acres in the prolific oil and gas
producing Paradox Basin in Utah, U.S.A., where it is earning into a
75% working interest. Using high-quality data gathered in a 3D
seismic survey completed in October 2017, the Company has
identified drilling locations in naturally fractured areas of the
Paradox Formation and has chosen the first well location and it is
now permitted to drill and plans to commence the drilling programme
and the first well as soon as possible, subject to rig
availability, stipulations of the leases, BLM Unit obligations and
financing.
On 22 June 2018, Rose announced a Competent Person's Report
("CPR") and Maiden Contingent Resource by Gaffney Cline &
Associates ("GCA") on the Rose acreage covered by the 3D seismic,
approximately 17,250 acres of the 80,000 acres held. The CPR
estimated a 2C Contingent Resource, net to Rose, of 9.25 MMBbl of
oil and 18.50 Bscf of gas, and an unrisked pre-tax Net Present
Value (NPV10) on the 2C Resources, net to Rose, of US$122 million.
The CPR focused solely on one single reservoir - the Cane Creek
reservoir (the "CCR" or "Clastic 21") - of the multiple prospective
reservoirs within the Paradox Formation.
The Company's established management is supported by an expert
technical team with extensive experience of the basin, where
current operations nearby have proven successful, with significant
initial production rates and low decline rates, offering strong
economics even in the present oil price environment.
The Company's strategy is to grow both organically and through
acquisition, identifying additional hydrocarbon assets,
conventional or unconventional, that would benefit from the
Company's fast-acting, entrepreneurial approach.
Rose Petroleum has been quoted on AIM since June 2004.
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END
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