21st Aug 2015 07:20
LONDON (Alliance News) - Rose Petroleum PLC on Friday said it has scaled back its drilling programme at the Mancos Formation in the Uinta Basin in Utah as it looks to keep the project economics solid amid a lower oil price environment.
Rose had planned to start a six-well campaign at the Mancos site, but this has been scaled back to one permit initially, with the company saying it appears prudent to scale back plans until commodity prices start to recover.
The company also said it is currently considering opportunities to add productive assets to its portfolio and has hired Jefferies International Ltd and Wellford Capital Markets to help it identify potential acquisitions.
"This current oil environment creates both a risk and an opportunity for Rose and having assessed our positioning, we believe that a solid production asset, economic at current price levels, would clearly be highly beneficial. Accordingly, we have engaged Jefferies and Wellford to help with our search for funding of an asset of this kind, while also focusing on our costs to buffer our exposure to the macro-environment," said Matthew Idiens, Rose's chief executive.
Rose shares were down 13% in early trade to 0.195 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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