Rose Petroleum plc

Completion of acquisition of two hydrocarbon licences in Germany


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.

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.