RockRose boss says lower oil prices could help seal acquisitions

RockRose Energy executive chairman Andrew Austin
RockRose Energy executive chairman Andrew Austin

RockRose Energy’s boss said today that the recent slump in oil prices could strengthen the firm’s hand on the acquisition trail. 

Executive chairman Andrew Austin said 2018 had been a busy year for the company and offered a bullish assessment of its prospects.

Last year, the London-listed company integrated the acquisitions of Idemitsu, Egerton and Sojitz.

It also completed deals for Dyas BV and a 30.4% interest in the Arran field, for which a development plan was agreed.

Production from RockRose’s UK assets averaged 5,194 barrels of oil equivalent per day (boepd) in 2018, falling just short of its 5,250 boepd target.

Group output was 10,772 boepd, while production in December came to 11,200 boepd.

The company hopes to achieve a range of 10,000-12,000 boepd from its current portfolio in 2019.

“Debt free” RockRose had £95 million in the bank at the end of 2018, of which £42m is held in connection with decommissioning security agreements.

Mr Austin said: “We continue to invest in the organic growth of our portfolio, while also actively evaluating acquisition opportunities.

“The recent decline in the oil price, combined with the strength of our balance sheet and absence of any debt, potentially presents further value accretive acquisition opportunities for RockRose.”

RockRose shares were up 7.34% to £5.85 in early trading in London.

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