However, IOG’s board has rejected the proposal, which values the company at £26.6 million ($34.9 million). It prefers to continue seeking a strategic partner to develop its various planned hub projects in the UK southern North Sea.
RockRose claimed it would be tough for IOG to independently fund planned capex of around £450 million ($590 million) without an industry partner in light of its current market capitalization, particularly in the current equity market.
It added that the company would likely have to cede operatorship of the assets as part of any farm-out process.
RockRose itself had considered becoming a partner but concluded the arrangement could prove to be problematic due to IOG’s financing issues.