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.