2018 was a year of significant delivery for RockRose Energy PLC. Your Company continues to make strong progress having completed two further acquisitions, increasing current production to around 11,000 boepd on a full year pro-forma basis. We have also observed an increase in the economic life of the portfolio with dates for decommissioning being pushed back in line with the government’s MER strategy. The Company sees the cash cost of decommissioning averaging around 20-25% of annual EBITDA for the next five years at current hydrocarbon prices.
The Company completed the acquisition of Dyas BV on 1 October for a consideration of $124 million (€107 million) adding approximately 6,000 boepd, along with cash balances of $90.6 million. The effective date of the acquisition was 1 January 2018. It also acquired a 30.43% stake in the Shell operated Arran field for a nominal consideration of $1. This development will add a further 8.6 mmboe of 2P reserves and estimated 5,200 boepd of initial net production from 2021.