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Energy

Rose Petroleum looks forward to Paradox drilling after period “of continued operational progress”

The focus is now on the group’s Paradox basin assets in Utah where a drill programme is planned for the second half of this year

Rose Petroleum PLC (LON:ROSE) described the six months to June 30 as a “time of continued operational progress”.

The company highlighted that its strategy is to create value from its existing asset portfolio and to take advantage of other convincing market opportunities.

Specifically, Rose had been working to sell its Mexican metal processing business while preparing for new exploration programmes in Utah.

Rose expects the Mexican deal to be complete before the end of October.

READ: Rose Petroleum inks binding deal to sell Mexico gold mill to Magellan

The company’s focus is now on the group’s Paradox basin assets, in Utah, where a drill programme is planned for the second half of this year, following the completion of a 3D seismic programme.

“The next period promises to be an exciting time in the Group's evolution and the Board is looking to the future with optimism,” Rose said in a statement.

In terms of financial results, Rose reported revenue of US$200,000 coming from the Mexico unit, where operations were suspended in March ahead of sale.

Rose reported a US$2.2mln loss after tax, and it ended the period with US$0.9mln of cash and equivalents. The Mexican disposal will see Rose receive US$1mln of cash.

READ: Rose Petroleum seeking approval for Mexico mill disposal, potential equity fund-raising, share consolidation

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