11th Apr 2019 10:54
LONDON (Alliance News) - Shares in Rose Petroleum PLC climbed on Thursday as the company said it has raised funds and also shaken up its board composition once again.
In late March, Rose said securing cash to start drilling its GV 22-1 well in the Paradox basin in Utah had taken longer than hoped.
It has now raised GBP275,000, through a subscription for 25 million shares by Robert Bensh at 1.1 pence each. The stock was up 14% at 1.65 pence Thursday.
Bensh, Rose said, is to become Rose's new executive chair.
"The proceeds of the fundraise will be used for general corporate purposes including the appraisal of identified investment opportunities within the company's current portfolio of business development projects," said Rose.
Also in March, Rose said David Sefton and James Berwick would be coming aboard as non-executive chair and a non-executive director respectively, but neither will now be joining.
Rose has instead hired Tom Reynolds, alongside Bensh, as a non-executive director.
Bensh is an "experienced" energy industry executive, Rose said, while Reynolds, who has been working recently as a consultant for the company, has worked at firms such as BP PLC and Total SA.
"I am delighted to welcome Rob Bensh as executive chair and believe his outstanding regional and operational expertise will be of great value to Rose as we look to optimise our portfolio and unlock additional opportunities in the upcoming months," said Rose Chief Executive Matthew Idiens.
"Tom has been working with Rose on a consulting basis for the past six months and I am pleased he has agreed to join the board to extend the capacity in which he can assist. I would also like to take this opportunity to thank Philip and Kelly for their service to Rose and wish each well for future endeavours."
Rose had previously announced both Philip Jeffcock and Kelly Scott would be departing the board, though Scott will keep working in his executive role in a non-board capacity.
Elsewhere, Rose is still looking for farm-in partners for its Gunnison Valley asset in Utah.
Rose has identified a potential project in Texas, it said, which could offer "potential for rapid production", and it is now investigating. The site could produce at 350 barrels of oil a day initially, Rose continued, giving payback within six months.
"The company has developed an excellent working arrangement with the owner/operator who has access to a number of other similar projects which have the potential to act as a pipeline of projects for the company to build production in the near-term," said Rose.
"For the avoidance of doubt the company does not currently have a binding agreement over this project."
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