UK Indie RockRose Expands in N Sea

UK-listed startup, RockRose Energy, which has non-operated interests in North Sea fields, has agreed to buy three similar interests from Japan’s Sojitz.

RockRose said August 3 it will pay $2.5mn, but get $1.7mn back upon completion to reflect an effective economic date for the deal of January 1 2016. As at September 30 2016, assets being acquired (known as Sojitz Energy Project) had tax losses of $59mn and supplementary charge losses of $34mn.

The gas producing assets being acquired, all in the southern North Sea, include a 15% stake in the Tors Field Unit Area (comprising the Kilmar and Garrow fields), 7.5% of the Grove Field unit area, and 10% of the Seven Seas field unit.

Tors fields are linked to the Trent field, while Grove delivers into the Dutch Markham complex, and Seven Seas is 80 km east of the Dimlington terminal.

RockRose chairman Andrew Austin, a former CEO of UK shale explorer IGas, said: "We continue to review further acquisition opportunities.” He said, after this and two prior deals with Maersk and Egerton are wrapped up, RockRose will have some £22mn ($29mn) of cash and 1,400 barrels of oil equivalent/day of production. 

The company launched in 2016 and was admitted to the London Stock Exchange in July 2017. Existing assets, subject to final approvals, include small non-operating stakes in the Scott, Telford, Galahad and Mordred oil fields that are operated by Cnooc-owned Nexen or France's Perenco.

RockRose chairman Andrew Austin (Photo credit: IGas)

Mark Smedley