Strategic decision to focus on Utah

RNS Number : 1599W

Rose Petroleum PLC

05 November 2014

 



Rose Petroleum plc (AIM: ROSE)

("Rose" or the "Company")

Oil & Gas Division - strategic decision to focus on Utah

Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, announces that its wholly owned subsidiary Parkyn Energy (Germany) Limitedhas withdrawn from the Konstanz and Biberach exploration licences in Baden-Württemberg, Germany, further details of which were originally announced on 5 August 2014 (the "Licences").

The current political situation for exploring unconventional hydrocarbons in Germany remains unclear and the Directors consider that this will remain the case in the near future. As such, despite promising preliminary results for exploration showing unconventional targets, the Company does not see any benefit in pursuing the Licences. In addition, the Directors felt that with only 15 months remaining on the Licences, and in view of the unclear regulatory requirements, there would not be sufficient time for the required work programme. Therefore, the Directors consider terminating the Licences represents the most effective use of management time and Company resources.

Rose will retain its Weiden Licence located in the State of Bavaria, Southeast Germany, since the Directors consider that the project has prospective conventional oil and gas targets which the current regulatory environment supports and the licence term is sufficient for Rose to perform the required work programme.

Group CEO Matthew Idiens commented: "With the current momentum we are building in respect of our Utah assets, we feel it is important that the Oil & Gas division of Rose remains firmly focused on those. In time we feel that the macro and micro environment in Germany should lead to further support for a much needed additional energy source but as we do not see this happening any time soon we have taken the decision to commit the Oil & Gas division's time and resources to Utah as we seek to maximise its value for shareholders."

For further information, please contact:

Rose Petroleum Plc                                                                                                                     [phone]

Matthew Idiens                                                                                                                             

CEO

Allenby Capital (Nominated Adviser & Broker)                                                              [phone]
Jeremy Porter / Alex Price

Pareto Securities (Joint Broker)                                                                                             [phone]

Guy Wilkes / Will Slack

Lionsgate Communications (Public Relations)                                                                [phone]
Jonathan Charles / Lynn Carratt

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 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 net 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. Unrisked Prospective (Recoverable) Hydrocarbon Resources on a Best Case (P50 equivalent) basis for the collective total Mancos Shale and Paradox Formation combined was 1,452.86 MMBO (million barrels of oil) and 4,791.85 BCFG (billion cubic feet 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.

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 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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