New UK North Sea operator RockRose Energy has said it is making “strong progress” towards its longer-term ambitions after a “year of significant delivery”.
RockRose recently snapped up the UK North Sea interests of Marathon Oil for £107 million.
The deal, which is expected to complete later this year, covers operated interests in fields in the Greater Brae Area, non-operated stakes in Foinaven and Foinaven East, and shares in several pipelines.
In a statement alongside annual results yesterday, London-based RockRose said the acquisition was doubling its proved plus probable reserves – to more than 70 million barrels of oil equivalent (boe) – and potentially doubling net daily production to 12,000 boe during 2019.
Last month, the company made a formal takeover offer – worth £26.6m – for Independent Oil and Gas (IOG).
But IOG, which owns the Blythe, Elgood, Nailsworth, Elland and Southwark gasfields, as well as an export pipeline in the southern North Sea, rebuffed the approach.
RockRose – led by executive chairman Andrew Austin – posted pre-tax profits of £5.66m for 2018, down from 56.87m the year before, on revenue that was up by nearly £112m at £117.5m.
Targets for 2019 include a field development plan for the Tain discovery in the central North Sea.
First gas from the Arran field, about 150 miles east of Aberdeen, is expected early in 2021.