Rose Petroleum plc

Oil & Gas Division - strategic decision to focus on Utah

5-November-2014

Withdrawal from the Konstanz and Biberach exploration licences in Baden-Württemberg, Germany to focus on Utah

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ROSE) natural resources company, announces that its wholly owned subsidiary Parkyn Energy (Germany) Limited has withdrawn from the Konstanz and Biberach exploration licences in Baden-Württemberg, Germany, further details of which were originally announced on 5 August 2014 (the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