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RockRose Energy PLC (“RockRose” or the “Company”) is pleased to announce it has entered into an agreement for the sale and purchase of the entire issued share capital of Sojitz Energy Project Limited (‘‘Sojitz’’) from Sojitz Corporation, a Japanese corporation, and Sojitz Europe plc. The consideration for the acquisition is US$2.5m, however the Company will receive US$1.7m at completion to reflect an effective economic date for the transaction of 1 January 2016. The acquisition will be funded out of the existing cash resources of the Company.  Completion of the acquisition is conditional upon confirmation from the Oil and Gas Authority (“OGA”) that there is no objection to change of control. As at 30 September 2016 Sojitz had corporation tax losses of approximately US$59m and supplementary charge losses of approximately US$34m.

The gas producing assets being acquired include:

  • a 15% minority, non-operated interest in the Tors Field Unit Area, comprising two gas fields: the Kilmar Field and the Garrow Field, which are linked to the Trent Field in the Southern Gas Basin.
  • a 7.5% minority, non-operated interest in the Grove Field Unit Area located in part-block 49/10a and 49/9c in the Southern Gas Basin. The Grove Field delivers gas produced via the Dutch Markham complex.
  • a 10% minority, non-operated interest in the Seven Seas Field Unit Area, in the Southern Gas Basin, approximately 80 kilometres east of the Dimlington terminal.

 

Andrew Austin, Chairman of RockRose Energy said:

“RockRose continues to make progress in its stated strategy of building a business through the acquisition of mature producing assets. We believe that this portfolio has potential for extended field life and gives the Company access to significant tax losses.

“We continue to review further acquisition opportunities, and post completion of this acquisition and the Maersk and Egerton transaction, the Company will have approximately £22m of cash (after posting cash security under the relevant decommissioning security agreements and bilateral decommissioning arrangements) and 1,400 BOEPD of production.”

Further detail on the assets being acquired can be seen in the Admission Document on the Company’s website.

 

Definitions:

 

OGA

 

Oil and Gas Authority
Mmscf

 

Million standard cubic feet
BCF

 

Billion Cubic Feet
BOEPD Barrel of oil equivalent per day