Mexican IVA recovery update

RNS Number : 7494Z

Rose Petroleum PLC

17 March 2017

 

17 March 2017

Rose Petroleum plc

("Rose", the "Company" or the "Group")

Mexican IVA recovery update

Rose (AIM: ROSE), the AIM quoted natural resource business, is pleased to provide an update on its progress to recover substantial IVA (value added tax) owed to the Group from the Mexican tax authorities.

By way of background, the Group is actively pursuing the recovery of IVA and outstanding tax totalling MX$16.5 million (circa. US$760,000) from the Mexican tax authority, Servicio de Administracion Tributaria ("SAT"). Rose has been in detailed discussions with SAT regarding the reclamation of the sums owed to Minerales VANE SA de CV, a subsidiary of Rose, dating back to 2013.

The Company has made significant progress in the recovery process over the past few months and is pleased to announce that the first tranches of outstanding funds have now been received amounting to MX$1,370,000 (US$72,100) and a total of approximately MX$4,200,000 (US$210,000) is expected to be received by the end of March.

Matthew Idiens, CEO, commented: "We are now seeing some real progress in the recovery of these outstanding funds.

I am confident that this is just the start of the process of the total resolution of this matter and I hope to see further recoveries, in the near-term.

We are working towards strengthening the cash reserves ahead of the grant of the 3D seismic shoot permit, which is the focus for value creation in the near term. These funds plus the potential disposal of the SDA mill proceeds go a significant way towards funding the next phase of the seismic programme. "

Prior to publication, certain information contained within this announcement was deemed to constitute   inside information for the purposes of Article 7 of EU Regulation 596/2014. Upon publication of this announcement, this information is now considered to be in the public domain.

Enquiries:

Matthew Idiens (CEO) Chris Eadie (CFO)	Rose Petroleum plc	Tel: [phone] Tel: [phone]
Jeremy Porter / James Reeve / Liz Kirchner	Allenby Capital Limited	Tel: [phone]
James Pope / Ben Turner	Turner Pope Investments	Tel:  [phone]

 

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