logo-loader
viewZephyr Energy PLC

Rose Petroleum agrees to pay farm-in partner in shares

us_dollar350_5446074aad768.jpg

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: Zephyr Energy PLC

Price: 0.725 GBX

LSE:ZPHR
Market: LSE
Market Cap: £2.08 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 Zephyr Energy PLC named herein, including the promotion by the Company of Zephyr Energy PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Market report: FTSE bounces back along with UK housing market

The FTSE 100 opened upbeat this Wednesday following a strong performance over on Wallstreet. A short time ago it was up 74 points to 5936. British house prices leapt to an all-time high in August, according to Nationwide who recognised a sharp rebound in the country’s housing market...

2 weeks, 3 days ago

2 min read