viewRose Petroleum PLC

Rose Petroleum rings changes as OCE comes on board


  • Substantial acreage in the Paradox Basin in Utah
  • Focus on high priority acreage 
  • These contain 8.3mln barrels of oil equivalent
  • Valuation (NPV) to Rose estimated at US$59mln
Oil rig

Quick facts: Rose Petroleum PLC

Price: 0.955 GBX

Market: AIM
Market Cap: £2.74 m

Rose Petroleum PLC (LON:ROSE) has been restructuring its board and senior management in recent weeks.

Origin Creek Energy is now a significant shareholder in the company.

OCE, an investor in the US onshore upstream sector, bought in at 1.2p, raising £300,000 for the AIM-quoted company.

Colin Harrington, OCE’s chief executive, took over as Rose’s executive chairman.

Rick Grant previously chief executive of Suez North America and co-founder of OCE has also joined the board as non-exec.


How is it doing

In October, Rose unveiled a restructuring of its Paradox basin venture.

A new agreement with joint venture partner Rockies Standard Oil Corporation (RSOC) allows Rose to focus on a potentially highly economic core acreage position of circa 12,920 acres.

This area is host to 21 “high priority” drill targets representing some 8.3mln barrels of oil equivalent contingent resources, valued at around US$59mln net to Rose – which would be a significant premium to the current market value of £2.48mln.

The new agreement also reduces overall costs for maintaining the project and gives “immediate ownership” of the highest potential acres.

Rose gains an immediate 75% working interest ownership and operatorship of key acreage, replacing the earn-in structure in the original agreement with RSOC.

The original obligation to carry RSOC for a 25% working interest on the first well stays in place and commits to carry RSOC for a 25% working interest for the acquisition of specific targeted leases in and around the core acreage area, up to a total cost of US$500,000.

The AIM-quoted firm has terminated its rights for less prospective acreage and has reassigned those rights back to RSOC.


What the boss says: Colin Harrington, CEO

“By focusing on highest potential acreage, the company maintains a project of real scale and value while reducing its on-going running costs and extending project term. 

“Most importantly, the company will also gain immediate ownership of core acreage and will become operator across the project.  I believe this restructuring will make the project more attractive to potential investors as we continue with our farm-in process.”

"In the board's view, the high-grading of the project will create a long-term future for the project, one which meets the board's selection criteria and which will positively complement the company's future balanced asset portfolio."




Inflexion points

  • Drilling of high priority targets underway
  • Take ownership immediately of core acreage
  • Worth an estimate US$59mln


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Rose Petroleum PLC named herein, including the promotion by the Company of Rose Petroleum PLC in any Content on the Site, the Company receives...



Full interview: Rose Petroleum sets sights on DJ Basin as it takes stake in...

Rose Petroleum PLC's (LON:ROSE) Colin Harrington tells Proactive London's Andrew Scott they've signed a Letter of Intent to acquire a 9% interest in shale assets in the prolific DJ Basin in Colorado. There is also an option to increase the working interest to around 80%. A 12-well...

on 4/11/19

2 min read