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Rose Petroleum agrees to pay farm-in partner in shares


Rose Petroleum (LON:ROSE) has agreed to pay a farm-in partner in shares rather than cash.

The company said that Rockies Standard Oil Company (RSOC) asked for the change to the March 2014 farm-in agreement, and as a result it will now issue shares worth a maximum of US$700,000 to the partner.

"We are pleased to enter into this agreement with RSOC as it represents a significant show of confidence in Rose and, of course, the project going forward and frees up further cash to be invested directly in the project," said chief executive Matthew Idiens.

Five cash payments totalling US$2mln were agreed originally in the farm-out deal, and Rose has already paid US$800,000 in cash to RSOC.

Rose will issue 4.1mln shares priced at 2.975p in respect of US$200,000 remaining from payments scheduled for September 2014.

Two further US$500,000 payments are due in April and November next year. ROSC will now be able to take up to half of those payments in shares rather than cash.

The deal, agreed in March, saw Rose secure a 75% interest in some 195,000 acres in Utah’s Uinta and Paradox shale basins. It was described as a ‘key asset’ at the time and through subsequent deals in the region Rose has built upon this initial position.

Quick facts: Rose Petroleum PLC

Price: 1.05 GBX

Market: AIM
Market Cap: £3.01 m


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