HOUSTON, April 27, 2017 (GLOBE NEWSWIRE) -- KLR Energy Acquisition Corp. (NASDAQ:KLRE) (NASDAQ:KLREU) (NASDAQ:KLREW) today announced the completion of its business combination with Tema Oil and Gas Company, an oil and gas exploration and production company with assets in the core of the Delaware Basin in Loving County, Texas. The transaction was approved by the boards of directors of both companies and was approved at a special meeting of KLRE's stockholders on April 26, 2017. In connection with the transaction, the Company has been renamed Rosehill Resources Inc. (“Rosehill Resources”), and its common stock, units and warrants will begin trading on The NASDAQ Capital Market under the symbols "ROSE", “ROSEU” and "ROSEW”, respectively, on April 28, 2017.

Gary Hanna, Rosehill Resources’ Chairman of the Board of Directors commented, “We are very pleased to finalize the combination of KLRE and Tema. We believe the newly-formed Rosehill Resources has a solid foundation of high growth assets with core locations in the Delaware Basin, a strong balance sheet and an experienced management team. The Company is well-positioned for growth and success in this prolific basin.”

J.A. (Alan) Townsend, Rosehill Resources’ Chief Executive Officer added, “We believe Rosehill Resources’ proven track record of operational excellence and strong well results demonstrates the underlying value of our Delaware Basin acreage. Rosehill Resources now has the size and capability to build on its core Delaware Basin portfolio through acquisitions, exploitation and exploration, which will provide a solid foundation of production growth and add value for our shareholders.”

The size of the Company's board of directors has been increased from five members to seven members, and consists of Gary C. Hanna, Edward Kovalik, J.A. (Alan) Townsend, Frank Rosenberg, William Mayer, Harry Quarls, and Francis Contino.

In connection with the business combination, certain institutional investors purchased $75 million of Rosehill Resources Series A Preferred Stock and warrants (the "Private Placement"). In addition, Tema's parent, Rosemore, Inc. ("Rosemore"), and KLRE's sponsor, KLR Energy Sponsor, LLC (“Sponsor”), purchased $20.0 million of Series A Preferred Stock to backstop redemptions (the “Backstop”). The proceeds of the Private Placements and the Backstop were used to fund a portion of the cash consideration required to effect the business combination. Following the closing of the transaction, Tema and its affiliates, including Rosemore, collectively are the single largest stockholder of Rosehill Resources. Sponsor is expected to retain a significant equity stake in Rosehill Resources and has two representatives on Rosehill Resources' Board of Directors.

Advisors

BMO Capital Markets and KLR Group, LLC ("KLR Group") acted as private placement agents to KLRE. Vinson & Elkins L.L.P. acted as legal counsel to KLRE and KLR Group. Petrie Partners, LLC acted as financial advisor and Norton Rose Fulbright US LLP acted as legal counsel to Rosemore and Tema.

About Rosehill Resources Inc. (formerly known as KLR Energy Acquisition Corp.)

Rosehill Resources is an oil and gas exploration company with producing assets in Texas and New Mexico, and its investment activity will be focused on the Delaware Basin portion of the Permian Basin. The Company’s strategy for growth will include the organic development of its core acreage position in Loving County as well as focused acquisitions in the Delaware Basin.

About KLR Group

KLR Group is a full-service boutique investment bank focused on the energy industry founded in 2012 and led by Edward Kovalik, Stephen Lee and Reid Rubinstein. With offices in Houston and New York, KLR Group is committed to providing clients access to a broad range of financial services, advice and solutions typically available only to the largest public companies. These solutions include public and private, corporate and asset-level financings across the capital spectrum, advisory services, equity research, sales and trading, and merchant banking. To learn more about KLR Group, please visit www.KLRGroup.com.