7th Jan 2020 11:34
(Alliance News) - RockRose Energy PLC said Tuesday it was able to hit key financial and operational targets in 2019 and is "well placed" to further progress in 2020.
In 2019, pro forma production was in line with guidance of about 19,200 barrels of oil equivalent per day. Excluding planned shutdowns, annual pro forma production was about 20,500 boepd, with about 21,000 boepd produced in December.
RockRose noted the Foinaven field was shut down for 34 days longer than anticipated for scheduled maintenance.
Overall, pro forma production increased by 78% versus the prior year average including a contribution from the Marathon Oil UK acquisition, the company said.
Average production for 2020 is guided to be about 21,000 Boepd, a 9.4% increase versus 2019 pro forma production. The production target includes the planned shutdown of the Forties pipeline system in mid-June for three weeks.
The company said its operational progress is continuing as planned and expects to participate in seven wells in 2020.
"RockRose is well placed to continue to offer substantial returns to shareholders. We delivered a strong increase in production in 2019, which resulted in significant cash generation. In turn, this enabled us to implement a regular dividend policy to return cash to investors while continuing to invest in projects designed to drive additional future returns," Executive Chair Andrew Austin said.
The company is guiding for a final dividend of 25 pence per share, giving RockRose a total dividend of 85p for 2019.
Capital expenditure in 2019 was about USD80 million, which is below previous guidance. RockRose attributed this to phasing. For 2020, capital expenditure is guided at about USD200 million - which the company said will lead to higher production.
Austin added: "We have a busy schedule in 2020, which will see organic growth in our production, and we continue to look at opportunities to deploy our balance sheet strength to make acquisitions that meet our criteria. We look forward to reporting on further progress as the year unfolds."
RockRose noted it has hedged 455,000 barrels of oil at USD65.70 per barrel for the first quarter of 2020. It has also hedged 1,800 gigawatt hours of gas production for 2020 at EUR18.05 per megawatt hour.
Shares in RockRose Energy were 3.3% higher in London on Tuesday at 1,911.65 pence each.
By Paul McGowan; [email protected]
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