Unaudited results for the six months ended 30 June 2018
RockRose Energy PLC (“RockRose” or the “Company”) is pleased to announce its interim results for the six months ended 30 June 2018.
Your Company continues to make strong progress and is in the process of completing two further acquisitions, which will more than double current production to over 11,000 boepd. All conditions precedent for the Dyas acquisition have now been satisfied. We continue to benefit from rising hydrocarbon prices. We are also observing an increase in the economic life of the portfolio with dates for decommissioning being delayed in line with the government's MER strategy. The Company sees the cash cost of decommissioning averaging around 20-25% of annual EBITDA for the next five years at current hydrocarbon prices.
We look forward to working with our new partners in the Arran development to bring this discovery on stream and benefiting from the impact of production and reserves from Arran on RockRose Energy's production profile, ensuring current production is exceeded or maintained until at least 2025.
Profit/(loss) after tax
Net cash inflow / (outflow) from operating activities
Cash and Cash equivalents
Deposit for acquisition of Dyas
Total Cash (pre-acquisition of Dyas)
The Risks and Uncertainties are unchanged from the last reporting period and are described in detail in our annual report for 2017.
ROCKROSE ENERGY PLC
Company Registration No. 09665181
Operational and Financial Update
Ø Strong revenue of $66.7m with average realised oil price of $72.85/bbl and gas price of $44.64/boe
Ø Average production of 5,176 boepd of which 444 boepd relates to gas production. (1H 2017: 0 boepd)
Ø Combined production (including Dyas B.V) in excess of 11,000 boepd for the period
Ø Return to shareholders of $31.5m (£23m (£1.50per share)) to shareholders in February 2018
Ø Payment of $13m refundable deposit for the Dyas BV acquisition is included in the period results
Ø Cash at Bank as at the date of this announcement is $108m, of which $52m is restricted.
Ø Dyas acquisition – On 24th May the Group signed a Sale & Purchase Agreement (SPA) to acquire 100% of the issued share capital of Dyas B.V., and its subsidiary Dyas Infrastructure, which have various non-operated interests in producing fields in the Dutch sector of the North Sea and onshore Netherlands. Total consideration is €107 million. A refundable deposit of €10.7 million ($13 million) was paid on signing the SPA. All Conditions Precedent have now been met and completion will occur on 1st October.
Ø The effective date of the Dyas acquisition is 1st January 2018, and assuming the acquisition had taken place on this date, forecast production for the 12 months ending 31st December 2018 would be circa 11,000 boepd of which 50% is oil and 50% is gas. Forecast EBITDA would be expected to be in excess of $100 million for the full year.
Ø Arran acquisition – On the 9th August the Company signed a SPA to acquire a 20.43% interest in blocks, 23/11a, 23/16b and 23/16c, which contain the Arran field in the UK Central North Sea, from Dana Petroleum for a nominal consideration. On 19th September, RockRose further to the SPA, has signed an Equity Realignment Letter Agreement on Arran that takes the Company's interest to 30.43%. The acquisition adds a further 8.5 mmboe 2P reserves to the Group and 5,200 boepd of initial production post development. The acquisition is subject to OGA approval and assuming approval is granted the completion is expected to occur by the end of September.
Ø Tain development – The Group has commissioned ERC Equipoise to evaluate both the existing upside potential within the Blake field (30.82%) and, the nearby Tain satellite discovery (50%). The partners are committed to submitting an initial FDP by the end of the year.
Ø Ross and Blake extension update – The Group has also commissioned an independent report from Crondall Energy to review the FPSO options on the Blake & Ross field. The scope is in two parts; firstly looking at extending the life of the Bleo Holm vessel which is operated by Repsol Sinopec, the company's joint venture partner and then considering the alternative of replacing the current vessel. The Bleo Holm is currently targeted to be on station until 2024. This is being undertaken to extend the life of the fields and give the opportunity to fully deliver other discovered hydrocarbons in the area. An extension of the field life of Blake and Ross to 2029 would increase reserves by circa 5.5mboe net to RockRose from the existing well stock.