Rose Petroleum PLC (LON:ROSE) told investors that it continues to seek a rig and funding for a drill programme in Utah, though good progress has been made with permitting.
The company, in a statement, noted that it has secured drilling permits – one for the Gunnison Valley Unit and one for the Paradox acreage – supporting options for a multi-well programme once the other pieces of the plan are delivered.
WATCH: Rose Petroleum expands footprint in Paradox Basin
Rose highlighted that it continues to keep up its search for an available rig so that it is able to kick off drilling operations as soon as possible, once funding is in place.
It added that negotiations with potential partners, for a farm-in or other funding options, are ongoing, but, also noted that securing commitments on appropriate terms has taken longer than anticipated.
Consequently, whilst noting concerns raised by shareholders, the company has now decided to draft in experienced industry directors to “assist with the execution of the company's strategy.”
David Sefton and James Berwick have agreed to join the board as non-executive chairman and non-executive director, respectively. To maintain the size of the board, Philip Jeffcock and Kelly Scott will resign as directors. Kelly Scott will remain with the company in an executive role.
"While we share shareholders' frustration at the length of time it is taking to secure a farm-in partner for the Paradox project, the level of interest shown does reinforce our views as to the underlying value and potential in our asset,” said Matthew Idiens, Rose chief executive.
“In this context, I am very pleased that David and James have agreed to join the board. This is a critical time for the company.
“We have an asset capable of delivering real value for shareholders and we realise that we need to add certain skills and networks to unlock that value.”
Sefton, meanwhile, added: “We think that while there are clearly challenges, and James and I still have more work to do to understand all aspects of the Paradox, this is a situation where we can see several potential solutions.
“We have quickly developed a good working relationship with Matt and his team and share their commitment to deliver value to Rose's shareholders.
“It is too early to come to definitive conclusions as to the right plan, but we are acutely aware that time is of the essence and look forward to updating shareholders in the very near future."
