Completion of Wate Sale

RNS Number : 0637F

Rose Petroleum PLC

17 February 2015

 



Rose Petroleum plc (AIM: ROSE) ("Rose" or the "Company")

Closing of sale of interest in the Wate Uranium Project

Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce that its wholly owned subsidiary VANE Minerals (US) LLC ("VANE") has now closed the transaction to sell its 50% interest in the Wate breccia pipe uranium project (the "Wate project") for an increased total sale price of US$1.75 million (from US$1.5 million), further details of which were announced on 2 January 2015 and 3 February 2015.

The sale was to EFR Arizona Strip LLC ("EFR"), a subsidiary of Energy Fuels Inc.  A revised Purchase and Sale Agreement (the "Agreement") has been signed, which replaced the original agreement and an initial payment of US$250,000 has been received.

Highlights of the revised transaction:

·      Total increased sale price of US$1.75 million (from US$1.5m) consisting of:

o  US$250,000 cash already received;

o  US$250,000 cash on 13 February 2016;

o  US$250,000 cash on 13 February 2017;

o  US$250,000 conditional cash; and

o  2% production royalty capped at US$750,000.

As consideration for the 50% interest in the Wate project, Energy Fuels paid US$250,000 cash to VANE at closing, along with a US$500,000 non-interest-bearing promissory note, payable in two equal instalments of US$250,000 on each of the first and second anniversaries of the closing, and a 2% production royalty on EFR's stake in the project.  The royalty can be purchased by EFR upon payment to VANE of an additional US$750,000, less any royalties previously paid.  In addition, upon the meeting of certain regulatory milestones, the deferred payments due under the note will be accelerated and, in addition, EFR will pay an additional US$250,000 cash to VANE.

Matthew Idiens, CEO, commented, "I am pleased that we have now finalised this transaction, having negotiated a new overall sales price which represents more than a 16% increase from the original agreed price. The proceeds will be used for working capital and further exploration expenditures across both our mining and oil & gas divisions." 

For further information please visit www.rosepetroleum.com or contact:

Matthew Idiens (Group CEO)	Rose Petroleum plc	Tel: [phone]
John Blair (CEO)	Rose Petroleum (US) LLC	Tel:  [phone]
Jeremy Porter	Allenby Capital	Tel: [phone]
Alex Price	Allenby Capital	Tel: [phone]
Elisabeth Cowell	St Brides Partners Ltd	Tel: [phone]
Lottie Brocklehurst	St Brides Partners Ltd	Tel: [phone]

About Rose Petroleum

Rose Petroleum plc (AIM Ticker: ROSE) is focusing on developing its oil & gas portfolio, while seeking to create value from its existing mining, milling and porphyry copper exploration portfolio.  

In March 2014, Rose signed a farm-in agreement under which its newly formed subsidiary, Rose Petroleum (Utah) LLC, can earn 75% of certain oil, gas and hydrocarbon leases covering approximately 230,000 acres in Grand and Emery Counties, Utah, USA, within the Paradox and Uinta basins.

In May 2014, Rose published the results of its reserve report prepared by Ryder Scott Company on the Mancos and Paradox Oil & Gas Projects. Un-risked Prospective (Recoverable) Hydrocarbon Resources on a Mean Case basis for the collective total Mancos Shale and Paradox Formation combined was 1,825.07 MMBO (million barrels of oil) and 6,447.87 BCFG (billion cubic feet of gas).

In June 2014, the Company successfully raised £6.5m by way of an oversubscribed conditional placing and subscription to develop the Mancos and Paradox assets in Eastern Utah, and the completion of a further £3.5 million fundraise was announced on 5 December 2014.

In October 2014, Rose acquired 100% of the assets of a privately owned SEP - Cisco Dome, LLC and various other associated entities for US$1.5 million in cash. The acquired assets included 11,000.02 gross / 8,250.02 net acres of highly prospective Mancos acreage, a gas compression station and gas processing plant as well as 17 producing wells and 35 shut-in wells.

Management intends to build on these projects to establish a balanced international asset portfolio. For further information please consult the Company's website: www.rosepetroleum.com

 

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