21st Oct 2014 08:32
LONDON (Alliance News) - Rose Petroleum PLC on Tuesday said it has signed an agreement with Rockies Standard Oil Co LLC under which it will issue shares to the company in respect of the farm-in agreement between the two signed in March.
Under the deal, Rose will issue shares to Rockies up to a maximum of USD700,000 to cover the remainder of the payments due under the farm-in. Two payments of USD500,000 of the total USD2 million owed have been made, Rose said, as has USD300,000 of the third USD500,000 installment.
For the remaining USD200,000 of the third installment, Rose will issue 4.2 million shares at 2.975 pence per share to Rockies.
For the final installment of the farm-in, Rockies will have the option to take up USD250,000 in shares of Rose at 3.175 pence per share, along with another USD250,000 in cash.
"We are pleased to enter into this agreement with Rockies as it represents a significant show of confidence in Rose and, of course, the project going forward and frees up further cash to be invested directly in the project," said Rose Chief Executive Officer Matthew Idiens.
Rose shares were down 0.9% to 2.8989 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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