RockRose Energy

RockRose has reappeared this morning and I will be writing more in due course but it is only appropriate to make a short comment now.

Firstly the shares have opened up at around £19 per share on good volume reflecting appropriate backing by cash of circa £16 per share and high quality management going forward. The Marathon assets are of high quality, doubles the production to 22/- b/d and 2p reserves of 62.9m boe.

RockRose will be a formidable generator of cash even after accounting for decommissioning liabilities and the Marathon balance sheet leaves nearly $400m of net cash and with only $91m of which is restricted.

The company has the cash, leverage opportunities and management skills to do many more deals and I consider that this is only a start, the market cap is now still only £240m and will surely go up once the long period of suspension has been balanced out. If it manages to remain quoted a much delayed appearance in the imminent updated bucket list is a certainty.