These are exciting times for the company as we look to complete the acquisition and move closer to our goal of becoming an oil producer in the near term
Colin Harrington, Rose chief executive
How it's doing
Rose Petroleum PLC (LON:ROSE) restructured last year with Colin Harrington now chief executive and Rick Grant, previously chief executive of Suez North America and co-founder of OCE, also on board as non-exec chairman.
As part of the rebrand, the company is changing its name to Zephyr Energy.
“The company is now positioned as a clean, low-overhead, unlevered and value-focused vehicle from which to build. I believe we have the team, strategy and value set to deliver on all of our ambitious objectives, and I look forward to the future with cautious optimism," said Grant.
Grant noted the group has “no debt, very low fixed costs and no near-term capital commitments”.
While the coronavirus pandemic has undoubtedly caused “considerable distress to the US natural resource landscape” it has also created opportunities, as evidenced by the number of companies filing for Chapter 11 protection from their creditors, increased asset sale activity and lower asset sale prices, he added.
The pre-revenue company saw its loss before tax widen to US$3.0mln in 2019 from US$978,000 in 2018.
Cash and cash equivalents at the end of last year stood at US$1.1mln, up from US$616,000 a year earlier. Rose said its directors are confident that the group has, or has access to, sufficient resources to enable it to continue in operation for at least the next twelve months.
- Now 100% focused on exploration and production investment in the Rocky Mountain region
- A major restructuring of the Paradox Basin asset
- The creation of a technology-led acquisition process designed to rapidly assess and acquire distressed E&P assets
- Completion of the potential acquisition of the McCoy lease, a working interest in a two-mile horizontal redevelopment project operated by one of the most active industry participants in the DJ Basin
- The potential addition of further interests through acquisition, farm-in agreements or joint venture arrangements