Rock Well Plans to Float on Main Market of London Stock Exchange
Rock Well Petroleum
Monday, July 07, 2008
Rock Well has announced its intention to apply for the admission of its Common Shares to the Official List of the Financial Services Authority and to trading on the Main Market of the London Stock Exchange and to proceed with an offer of Common Shares to certain institutional and other investors (the IPO).
Rock Well is a North American-based oil development and production company that has developed a technique, known as the "Rock Well Technique" or "RWT", to extract oil previously considered to be incapable of economic recovery and consequently believed to be stranded. The Company has been able to classify large volumes of stranded oil as reserves, significantly increasing the value of its portfolio. Rock Well's strategy for growth is to continue to acquire and develop its US onshore fields and grow its international subsidiaries.
RWT utilizes well-established mining and drilling practices to tunnel beneath mature, depressurized, shallow oil reservoirs, and reservoirs where surface access is restricted, and drill a high number of closely-spaced up-ward sloping horizontal wells into the oil-bearing zone. The oil is extracted primarily through gravity drainage, collected in underground facilities and pumped to the surface. The move to underground production facilities minimizes surface disturbance and allows Rock Well to reclaim land, leading to a positive environmental impact.
"We have spent many years developing the Rock Well Technique, gaining a first mover advantage and building a strong portfolio," said CEO John Hoak. "Following the IPO, Rock Well will optimize the development of its existing assets, with over 320 million barrels of net Proved and Probable Reserves, and further grow its reserve base through acquisition. At a time of rising oil prices and concerns over energy security the Rock Well Technique helps address the oil and gas industry's urgent need to replace reserves.
"The Group has a growing portfolio of long-duration assets located in a stable political environment with access to infrastructure and increasing demand for domestic supply. With our focus on low cost, non-conventional oil exploitation, Rock Well offers a clearly differentiated play compared to the London Main Market listed oil and gas peer group."
The IPO will comprise an offer of new and existing Common Shares of the Company to certain institutional and other investors in the United Kingdom and elsewhere.