Rosehill Resources Inc. Announces Sale of Its Barnett Assets and Increase in Borrowing Base Under Its Credit Agreement
Source: Nasdaq GlobeNewswire / 02 Nov 2017 17:17:18 America/New_York
HOUSTON, Nov. 02, 2017 (GLOBE NEWSWIRE) -- Rosehill Resources Inc. (“Rosehill” or the “Company”) (NASDAQ:ROSE) (NASDAQ:ROSEW) (NASDAQ:ROSEU) today announced the closing of the sale of its remaining Barnett Shale assets for approximately $7.1 million, subject to customary purchase price adjustments. The assets were producing approximately 675 net barrels of oil equivalent per day, with 54% gas and 45% natural gas liquids. The sale proceeds are being used for general corporate purposes.
The Company also announced an increase in the borrowing base under its credit facility effective October 30, 2017 to $75 million, up $20 million from the September 30, 2017 borrowing base. The next regular redetermination of the borrowing base is scheduled to occur on or about April 1, 2018.
J.A. (Alan) Townsend, Rosehill’s President and Chief Executive Officer, commented, “We are pleased with the sale of our non-core Barnett Shale assets. With this sale and the recently announced pending acquisition, we are a pure play Delaware Basin company with two strong, concentrated core acreage positions. The increase in our borrowing base demonstrates the confidence shown by our bank in the value of the Company’s assets and its strong operational results. We believe there is tremendous value in our expanded Delaware Basin assets and expect additional increases to our reserves in the future that further supports the increased value.”
About Rosehill Resources Inc.
Rosehill Resources Inc. is an oil and gas exploration company with producing assets in Texas and New Mexico with its investment activity focused on the Delaware Basin portion of the Permian Basin. The Company’s strategy for growth includes the organic development of its core acreage position in Loving County, Texas as well as focused acquisitions in the Delaware Basin.
This communication includes certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. All statements, other than statements of historical fact included in this communication, regarding our opportunities in the Delaware Basin, our strategy, future operations, financial position, estimated results of operations, future earnings, future capital spending plans, prospects, plans and objectives of management are forward-looking statements. When used in this communication, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “guidance,” “forecast” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.
You should not place undue reliance on these forward-looking statements. Although the Company believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements in this communication are reasonable, no assurance can be given that these plans, intentions or expectations will be achieved or occur, and actual results could differ materially and adversely from those anticipated or implied by the forward-looking statements. Some factors that could cause actual results to differ include, but are not limited to, the Company’s ability to consummate its announced acquisition to purchase additional acreage and production in the Delaware basin, its ability to obtain acquisition financing on desirable terms, if at all, the risk that conditions to closing of its announced acquisition may not be satisfied or that the closing otherwise does not occur, the diversion of management’s time on acquisition-related matters, the ultimate timing, outcome and results of integrating the acquired assets into its business and its ability to realize the anticipated benefits, commodity price volatility, inflation, lack of availability of drilling and completion equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating oil and natural gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the other risks and uncertainties discussed under Risk Factors in the Company’s Registration Statement on Form S-3, as amended, filed with the SEC on June 14, 2017, and in other public filings with the Securities and Exchange Commission (the “SEC”) by the Company. The Company’s SEC filings are available publicly on the SEC’s website at www.sec.gov. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. All forward-looking statements speak only as of the date of this communication. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this communication.
President and Chief Executive Officer
Chief Financial Officer