logo-loader
viewRose Petroleum PLC

Rose Petroleum weighs up strategic US shale acquisition

rsz_rose_petroleum__utah_sign_542a563e1e377.jpg

Rose Petroleum (LON:ROSE) told investors it is evaluating a potential strategic acquisition in the Mancos area of the Mancos shale play, in Utah.

Due diligence is presently underway and the company anticipates that a deal will be closed in the fourth quarter, should management decide to proceed.

Rose, formerly Vane Minerals, has undergone a transformation in the year to date as it created a new oil and gas business largely focused on shale acreage in Utah.

During the first six months of the year it secured 230,000 acres in the Paradox and Mancos shale plays, as well as separate projects in Germany.

The acquisitions and a subsequent third party validation of the assets (in the form of a new competent persons report or CPR) have caught the attention of investors.

The new CPR estimated as much as 1.45bn barrels of oil and 4.79 tcf (trillion cubic feet) of gas were present within the group’s Paradox and Mancos acreage.

In the remainder of 2014 the company anticipates programmes on its initial wells in both the Paradox and Mancos areas.

In this morning’s interim results statement for the first six months of 2014 the company said the transition to US oil and gas had been very successful.

At the same time Rose has retained mining interests in Mexico – which were the centrepiece of its prior incarnation as Vane – and its strategic aim is to build up both divisions to the point where they can exist as stand-alone entities.

In recent months this has advanced somewhat with new partnership agreements being entered into by the mining division.

In terms of its financials Rose reported £1.35mln of revenue from mining operations in Mexico, with gross profit of £69,818 and a pre-tax loss of £901,195.

Quick facts: Rose Petroleum PLC

Price: 1.05 GBX

AIM:ROSE
Market: AIM
Market Cap: £3.01 m
Follow

NO INVESTMENT ADVICE

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...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Sweet-smelling milestones for Rose Petroleum

Rose Petroleum PLC (LON:ROSE) this week released milestone investor updates as it continues to work on the composition of its asset portfolio in the United States. Investor turned CEO Colin Harrington tells Proactive London which changes he has made to get Rose to this sweet spot, including...

1 week, 3 days ago

2 min read