took a little bit of a hit due to the dilution of the new share issuance. We believe ROSE has ample opportunity to add value to its new Permian reserves by, for instance, reducing the down spacing of its vertical wells from 40 acres to 30 acres and possibly even 20 acre spacing. Besides the vertical play within the Permian reserves, there are also several horizontal pay zone opportunities that could add substantially to the ultimate recoveries. Other exploration and production companies with acreage in the same vicinity as ROSE's new Permian assets have produced some very promising initial wells. Though it is too early to gauge whether these new assets are as productive and profitable as ROSE's world-class Eagle Ford shale assets, ROSE's management team has a long history of proven success. We look forward to updating you on ROSE as the company ramps up its drilling activity in this region later this year and in 2014.
From FPA Capital's second quarter 2013 commentary.