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RockRose Energy plc (RRE)

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Friday 17 January, 2020

RockRose Energy plc

Change of Operatorship of Brae Area

RNS Number : 1678A
RockRose Energy plc
17 January 2020
 

FOR IMMEDIATE RELEASE                                                                                                             17th January 2020

 

ROCKROSE ENERGY PLC

("RockRose")

 

Change of Operatorship of Brae Area

RockRose Energy plc (LSE: RRE) (the "Company"), the independent oil and gas production and infrastructure company, announces, subject to receipt of  approval by the Secretary of State, it will be passing operatorship of the Brae Area to TAQA Bratani ("TAQA"). This follows court proceedings brought by TAQA and the other joint venture partners, JX Nippon and Spirit Energy in December 2019. The proceedings related to the notice of discharge served on Marathon Oil UK (MOUK), as operator. There is no strategic or financial consequence to RockRose, as no partner under a Joint Operating Agreement (JOA) can benefit from being operator.

The notice of discharge was served on MOUK prior to its acquisition by RockRose on 1st July 2019 and the possibility of this outcome was referred to in the prospectus published by the Company on 19th July 2019. Throughout the process, subsequent to the notice having been received, RockRose has remained committed to ensuring the best possible outcome for the Brae Area, its staff, and for the joint venture partners.

RockRose will work with TAQA during the transition process to ensure there is no disruption to ongoing operations (including the current drilling programme at West Brae), and to ensure staff are fully supported throughout. We expect the handover to be completed in the second of half of the year.

Since completion of the Marathon Acquisition RockRose has made a material positive impact in the Brae Area, both for the staff and the assets. Our achievements, which have been realised in conjunction with our joint venture partners, include:

§ Reserves have been increased;

§ Cessation of production (CoP) at Brae Alpha has been extended by at least three years to 2030;

§ East Brae CoP has been extended by two years to 2023;

§ Brae Bravo has been successfully disembarked and the knowledge gained from that exercise has materially benefitted other assets in which RockRose is a partner; and

§ The working environment has improved with the implementation of a rota change offshore and restructuring of the operational leadership.

 

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

 

"Our focus throughout this process has been to ensure the best possible outcome for the Brae Area, the staff working on the assets, and for the joint venture partners. We are proud of the role we have played in furthering the Government's Maximising Economic Recovery (MER) strategy in the short time we have operated the assets. We look forward to working with TAQA to support a smooth transition and to minimise any disruption once approval from the Secretary of State has been obtained. For RockRose, this change is financially and strategically neutral and we look forward to seeing the assets continue to deliver for the Company and its shareholders".

 

-ENDS-

 

 

Enquiries:

 

 

RockRose Energy plc

+44 (0)20 3826 4800

 

 

Broker:

Hannam & Partners (Advisory) LLP

Giles Fitzpatrick / Andrew Chubb

 

+44 (0)20 7907 8500

 

 

Joint Brokers:

Whitman Howard

Hugh Rich / Nick Lovering

 

+44 (0)20 7659 1261 / 1224

 

 

Cantor Fitzgerald

David Porter

 

+44 (0)20 7894 7000

 

 

Financial PR:

Celicourt

Mark Antelme / Philip Dennis / Ollie Mills

 

+44 (0)20 8434 2643

 

For further information, please visit the Company's website at www.rockroseenergy.com


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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