Red Rock shares soar on Resource Star's Texan oil plan

2nd Aug 2013 14:38

Shares in Red Rock Resources carved out gains of nearly 15 per cent after it emerged its Australian associate intends to buy a stake in a Texan oil project.Resource Star, which is 39% owned by Red Rock, has struck a binding agreement to buy a 50% stake in D-Bar Leasing from Searex Petroleum.The oil project in Abilene Texas holds a 100% working interest in eight oil producing leases covering 2,732 acres plus a further 10 acres of freehold land and buildings, drill rigs and other equipment.Andrew Bell, Chairman of both Red Rock and Resource Start said: "For Red Rock this transaction is beneficial because it strengthens an associate that was suffering poor performance as a result of the conditions in the uranium market and is likely to bring increased liquidity to our Resource Star shareholding."Shares in Red Rock were up 15% to 0.39p.TB