Rose Petroleum (LON:ROSE) said it has refined its strategy in light of the current depressed oil price.
Practically, this will mean altering drilling plans, but the Utah-focused group has said the current malaise will throw up opportunities to acquire assets at knock down prices.
To that end it has hired investment banks Jefferies and Wellford Capital Markets to help locate, assess and help find funding to purchase new assets.
Chief executive Matthew Idiens said: "This current oil environment creates both a risk and an opportunity for Rose and having assessed our positioning, we believe that a solid production asset, economic at current price levels, would clearly be highly beneficial.”
In a strategy update, Rose said it is focusing its efforts on the Cisco Dome to deliver a well that can be quickly tied into infrastructure and therefore will be immediately cash generative.
The company had been in the process of permitting six well locations in the Mancos Formation of the Uinta Basin.
“We believe this initiative will better deliver value for shareholders, particularly at current oil prices, from which we can roll out further initiatives across our licence,” said CEO Idiens.
“With production in place from both this well and potentially, a new asset, we would be in a much stronger position to develop our current exploration portfolio, which benefits from a low break-even price."
Finally, the company said it is making progress acquiring the permits needed to shoot seismic on the Paradox Project.