RockRose to buy more North Sea assets

UK independent RockRose Energy is buying stakes in gas producing assets in the North Sea through a purchase of oil and natural gas development company from a Japanese corporation. 

RockRose previously announced it had entered into a heads of terms agreement to acquire a subsidiary of a major trading company which holds small non-operated interests in gas fields located in the Southern North Sea and significant tax assets.

The company said on Thursday it has now entered into an agreement for the sale and purchase of the entire issued share capital of Sojitz Energy Project Limited from Sojitz Corporation, a Japanese corporation, and Sojitz Europe plc.

The consideration for the acquisition is $2.5 million, however the company will receive $1.7 million at completion to reflect an effective economic date for the transaction of January 1, 2016. The acquisition will be funded out of the existing cash resources of the company, RockRose said.

Completion of the acquisition is conditional upon confirmation from the UK’s Oil and Gas Authority (OGA) that there is no objection to change of control.

As at September 30, 2016, Sojitz had corporation tax losses of approximately $59 million and supplementary charge losses of approximately $34 million.

The gas producing assets being acquired include a 15% minority, non-operated interest in the Tors Field Unit Area, comprising two gas fields: the Kilmar Field and the Garrow Field, which are linked to the Trent Field in the Southern Gas Basin.

The assets being acquired also include a 7.5% minority, non-operated interest in the Grove Field Unit Area located in part-block 49/10a and 49/9c in the Southern Gas Basin. The Grove field delivers gas produced via the Dutch Markham complex.

Finally, the transaction includes a 10% minority, non-operated interest in the Seven Seas Field Unit Area, in the Southern Gas Basin, approximately 80 kilometers east of the Dimlington terminal.

Andrew Austin, Chairman of RockRose Energy, said: “RockRose continues to make progress in its stated strategy of building a business through the acquisition of mature producing assets. We believe that this portfolio has potential for extended field life and gives the company access to significant tax losses.

“We continue to review further acquisition opportunities, and post completion of this acquisition and the Maersk and Egerton transaction, the company will have approximately £22m of cash, after posting cash security under the relevant decommissioning security agreements and bilateral decommissioning arrangements, and 1,400 BOEPD of production.”

To remind, RockRose is also working to acquire interest in a pair of UK North Sea fields from Maersk Oil.

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