Completion of acquisition

RNS Number : 1290Y

Rose Petroleum PLC

21 January 2014

 



Rose Petroleum plc (AIM: ROSE)

("Rose" or the "Company")

Completion of acquisition of two hydrocarbon licences in Germany

Rose Petroleum ("Rose") (formerly VANE Minerals), the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce the completion of its purchase of the entire issued share capital of Parkyn Energy Holdings plc (the "Acquisition"), which in turn owns 100% of Parkyn Energy Germany ltd, the sole owner of two hydrocarbon licences in southwestern Germany, further details of which were announced on 5 August 2013 (the "Licences").

Under the terms of the Acquisition, which has been completed, Rose has acquired a 100% interest in the two concessions covering over 635,000 acres for €400,000. In addition, the Licences are subject to a 2% overriding royalty interest (ORRI) in favour of 3Legs Resources plc of gross sales of hydrocarbons less certain costs, plus a 0.5% ORRI to the original finder.

Matthew Idiens, CEO, said, "This announcement heralds Rose as a new petroleum company with exciting assets familiar to our experienced in-house technical team. Fortunately, as the licenses appear to have both conventional and unconventional targets, this will allow us to progress the conventional plays until the regulatory environment becomes clearer on unconventional plays. This is an exciting moment for the Company and we look forward to updating our shareholders with progress."

The Licences

The Konstanz and Biberach licences in southwestern Germany (state of Baden-Württemberg), are located within the large Molasse Basin and contain both conventional and unconventional petroleum plays. Several conventional Oil & Gas fields exist in the Molasse Basin.

The Konstanz licence covers an area of 369,863 acres and has significant historic data available, including two oilfields and two deep wells in the area, which have enabled the identification of four main targets: (a) shale oil in Tertiary black shales (Schöneck shales); (b) shale oil in Lower Jurassic (Posidonienschiefer) black shales; (c) shale gas in Early Permian (Autunian) black shales; and (d) tight gas in Upper Carboniferous (Stephanian) sandstones. All of these targets can be tested with a single borehole. All the shale sections have been sampled and show promising geochemical, maturity and petrological properties.

The Biberach licence covers an area of 266,073 acres and has less historic data than the first area, but the directors of Rose believe that it has similar target zones: (a) shale oil in Tertiary black shales (Schoeneck shales); (b) shale oil in Lower Jurassic Posidonienschiefer black shales; and (c) possibly shale gas and tight gas from Early Permian & Upper Carboniferous formations. Additional seismic data will be required to confirm the targets. Two conventional oilfields exist as separate permits in this licence area, owned by a third party. Geochemical studies have shown that the conventional Oil & Gas fields in the area were charged by the Lower Jurassic and, probably, the Tertiary black shales. The deeper Paleozoic shales are efficiently sealed by Upper Paleozoic and Triassic rocks.

For further information, please contact:

Rose Petroleum Plc                                                                                                                     [phone]

Matthew Idiens                                                                                                                             

CEO

Allenby Capital (Nominated Adviser & Broker)                                                                      [phone] 

Jeremy Porter / Alex Price

Lionsgate Communications (Public Relations)                                                                         [phone]

Jonathan Charles / Jessica Johnson

Steven D. Van Nort, MS Geology, Director Rose Petroleum plc, who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement.

About Rose Petroleum

Rose Petroleum plc (AIM: ROSE) is a Rose Petroleum plc (AIM Ticker: ROSE) (formerly VANE Minerals plc) is a newly formed oil & gas exploration company.

In late 2013, Rose raised additional capital and appointed an experienced Head of New Ventures and in-house technical team to pursue significant new Oil & Gas assets.

In January 2014 the Company announced that it had completed the acquisition of two licences in Western Europe covering approximately 635,000 acres on 20th January. Each licence area is understood to have at least four target pay zones. Management is looking to build on this initial acquisition to establish a balanced international asset portfolio. The Company also has existing mining assets for which it is developing as well as considering options to increase shareholder value.

For further information please consult the Company's website: www.rosepetroleum.com

 

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