RockRose Energy plc Operations Update (6370H)

TIDMRRE

RNS Number : 6370H

RockRose Energy plc

26 March 2020

FOR IMMEDIATE RELEASE 26 March, 2020

ROCKROSE ENERGY PLC

("RockRose")

Operations Update

As previously announced, the FCA's moratorium on publishing financial statements means that RockRose Energy plc ("RockRose" or "the Company"), the independent oil and gas production company, has been unable to publish its 2019 Annual Report and Financial Statements today as planned. In view of this, the Company is pleased to provide the following operations update.

The Company remains well positioned, despite current oil market uncertainties. RockRose has a strong balance sheet, with no debt and cash at the close of business on 25(th) March 2020 of GBP287 million (GBP248 million unrestricted), equivalent to GBP21.89 per share. RockRose was listed on the London Stock Exchange in January 2016, when Brent crude traded below $30/bbl, and has remained focused on being able to operate in a low oil price environment. Currently we anticipate unit operating costs of c.$30/boe in 2020.

The Company has hedging in place to support its current capital expenditure commitments. RockRose hedged 455,000 barrels of oil hedged at $65.70 per barrel for Q1 2020 and 63 million therms of gas at EUR0.53 per therm (49p/therm) for calendar 2020. Looking further ahead, an additional 54 million therms has been hedged in each of 2021 and 2022 at EUR0.41 and EUR0.45 per therm (38p and 42p) respectively.

The Company has previously guided that capital expenditure in 2020 would be c.$200 million, with much of that earmarked for the development of the Shell-operated Arran gas/condensate field. However, other discretionary spending is being reviewed and it is anticipated that at least $50 million of this capital expenditure will be deferred, a drop of 25% and in line with other businesses.

Based on the strength of the Company's cash position, the hedging it has in place, and the flexibility of its capital expenditure commitments, the Board of Directors still expects to recommend the payment of a final dividend of 25p per share, bringing the total for 2019 to 85p.

The Company has not experienced an adverse impact on its operations as a result of COVID-19. The precautionary and contingency measures that have been put in place, on both operated and non-operated assets, are working well. In the Brae field, which we operate, we currently have no staff with symptoms and no staff in isolation. The safety and wellbeing of the Company's staff remains of paramount importance and RockRose is working closely with the authorities and other operators on this matter.

A further announcement regarding our final results will be made once a revised date for publication has been determined, following consultation with the FCA and our advisors.

Commenting, Andrew Austin, Rockrose, Executive Chairman, said:

"Following the FCA's request for a short-term moratorium on the publication of preliminary financial statements, I wanted to take this opportunity to update and reassure investors and staff of the Company's strength in what are unprecedented times.

RockRose remains well placed to navigate the current economic situation, with the business underpinned by a strong balance sheet, hedging, and management's ability to reduce capital expenditure this year and next, if required."

-ENDS-

 
 Enquiries: 
 Rockrose Energy plc                  [phone] 
 
 Financial Advisor: 
  Hannam & Partners (Advisory) LLP 
  Giles Fitzpatrick / Andrew Chubb     [phone] 
 
 Brokers: 
  Whitman Howard 
  Hugh Rich / Nick Lovering            [phone] / 1224 
 
 Financial PR: 
  Celicourt 
  Mark Antelme / Philip Dennis / 
  Ollie Mills 
 
 
  www.rockroseenergy.com               [phone] 
 

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March 26, 2020 03:00 ET (07:00 GMT)