NORTH Sea-focused RockRose Energy has said it is eyeing more acquisitions noting the renewed fall in the crude price since October could create opportunities.
In an update on 2018 trading, the oil and gas independent said it is 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,” said executive chairman Andrew Austin.
He said London-based RockRose had made good progress in 2018 as it felt the benefit of a range of North Sea acquisitions completed in recent months. RockRose expects to produce an average 10,000 barrels oil equivalent per day (boepd) to 12,000 boepd in 2019 from its current portfolio. It had $121 million cash in the bank at 31 December.
The company was formed by Mr Austin in 2015 in the belief it could capitalise on the plunge in the crude price from a high of $115 per barrel in June 2014, by acquiring assets at attractive prices. Brent crude traded at around $53.15 per barrel yesterday, around 35 per cent down on the four year-high of $85/bbl reached in October. Booming production in US shale areas has complicated attempts by major exporters led by Saudi Arabia to support the market by curbing output. These helped crude rally from the low of less than $30/bbl recorded early in 2016.
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