Rose Petroleum shares spike on narrower loss announcement

Rose Petroleum shares spike on narrower loss announcement

Oil and gas producer Rose Petroleum PLC (LON: ROSE) has seen its share price jump on the release of its full-year financial performance and the announcement of new board appointments.

The results

The Company announced that they were able to narrow their margin of loss on-year, owing to spending reductions and favourable exchange rate movements. As such, pre-tax losses for the year fell from $3.5 million to $0.8 million on-year.

“The headway achieved by the group during 2018 was made against the backdrop of challenging market conditions that saw volatility in oil prices, particularly towards the end of the year,” the Company said in its statement today.

“In spite of this, Rose made progress with continued preparations for the start of drilling at its primary asset in the Paradox Basin, Utah, US.”

New appointment

In addition to the latest round of results for the year ended 31st December 2018, the Company informed investors and press that it had appointed a new Non-Executive Director.

“Rose Petroleum (AIM: ROSE), the AIM quoted natural resources business, is pleased to announce the appointment of Rick Grant as a Non-Executive Director of the Company, effective immediately.”

“Rick has a 40-year track record of success in the oil and gas industry. Rick is co-founder and Chairman of Origin Creek Energy LLC (“OCE”). OCE makes $2-$20 million foundational investments in the domestic US energy sector.  The firm’s capital is provided by its partners and two affiliated family offices.”

Following the appointment, the Company reflected on upcoming tasks, as well as departures from its Board:

“The Board continues to evaluate roles and needs at the executive and Board levels. Related to this process, Matthew Idiens has informed the Company of his intention to step down as a Board member and CEO after assisting through a transition period to an updated management team. The Company expects to make additional announcements about changes to the executive team during the next quarter.”

Rose Petroleum investor notes

The Company’s shares rallied sharply in morning trading, up 26.36% or 0.29p to 1.39p a share on Friday morning 28/06/19 11:53 GMT.

Elsewhere in the oil and gas sector, there have been updates from; Petrofac Limited (LON: PFC), Eco Atlantic Oil and Gas Ltd (CVE: EOG) and Mayan Energy Ltd (LON: MYN).