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
Origin Creek Energy, an investor in the US onshore upstream sector, is now a significant shareholder in the company after buying shares at 1.2p.
Colin Harrington, OCE’s chief executive, took over as Rose’s executive chairman. Rick Grant previously chief executive of Suez North America and co-founder of OCE also joined the board as non-exec.
How is it doing
An investor update in February confirmed an extension to the Paradox leases, securing some 11,300 acres in the core project area for two more years.
In total, Rose has a 19,900 acre contiguous position at Paradox, in Utah, and, the majority of that land was the subject of a 2018 seismic data capture.
Back in October, Rose unveiled a restructuring of its Paradox basin venture.
A new agreement with joint venture partner Rockies Standard Oil Corporation (RSOC) allows Rose to focus on a potentially highly economic core acreage position.
This area is host to 21 “high priority” drill targets. According to the most recent update, Rose said that the restructured Paradox project acreage is estimated to host some 9mln barrels of oil equivalent contingent recoverable resources.
"While the company's immediate focus is to acquire near-term production in more mature Rocky Mountain Basins, the upside that can be delivered from our Paradox project makes it a highly attractive investment opportunity and ensures the project will remain a central part of company's future focus and activity,” Harrington said.
The October agreement also reduced overall costs for maintaining the project and gives “immediate ownership” of the highest potential acres.
Rose gains an immediate 75% working interest ownership and operatorship of key acreage, replacing the earn-in structure in the original agreement with RSOC.
Rose in November inked an agreement to acquire an initial stake in assets in the Rocky Mountain region, and, the area is becoming a focal point for the company.
Rose, back in November, signed a letter of intent with Captiva Energy Holdings (CEH) setting out the terms for the acquisition of the McCoy lease - a 317 acre area in the Denver-Julesburg Basin - in Colorado and it is now working to close that deal.
The initial transaction sees Rose take an 8.5% of McCoy (10% of CEH’s 89.5% stake) before earning up to 80% of CEH’s stake.
Rose noted that CEH had inked an amendment to the McCoy lease to allow the drilling of extended horizontal wells and CEH has separately elected to support Great Western Operating Company which has applied for a drill permit for a campaign across its 1,280 acre portfolio, which includes McCoy.
Chief executive Colin Harrington said: "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.
“We are very pleased to report on CEH's successful conclusion of lease amendment negotiations, and we welcome the opportunity to benefit from the expertise and investment that Great Western will bring as operator of the DSU.”