Rose Petroleum plc

Fundraising of £3.5m by way of a conditional placing and subscription

1-December-2014

Fundraising by way of a conditional placing and subscription, Development economic update and Project financing discussions

Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce its intention to raise £3.5m by way of a conditional placing and subscription.

Summary of the Placing

  • The Company proposes to raise £3.5m (before expenses) by way of a conditional placing by Allenby Capital Limited ("Allenby Capital") and Pareto Securities Limited ("Pareto") and a subscription of, in aggregate, 199,999,987 new ordinary shares of 0.1 pence each ("Ordinary Shares") (the "Placing Shares") at a price of 1.75 pence per share (the "Placing")
  • Placing Shares have been conditionally placed with institutional and other investors
  • The Placing is subject to, amongst other things, admission of the Placing Shares to trading on AIM ("Admission"), expected to take place on 5 December 2014
  • The net proceeds of the Placing will be used to provide funds to develop the Company's Mancos and Paradox assets in eastern Utah and to meet general Group overheads
  • The Company also announces that early stage discussions are taking place for potential project level funding into Rose's subsidiary, Rose (Utah), LLC to further accelerate development of the Mancos and Paradox assets

Matthew Idiens, CEO, commented: "I am delighted to announce this opportunistic fundraising at a 17% premium to our last fundraise in early summer. We are particularly pleased that we have been able to carry out the fundraising despite the current turmoil in world oil markets and are gratified by the confidence placed in us by our investors. This fundraising is within our existing share authorities and, given the early stage discussions we are having in relation to potential project level fundraising, we are aiming to minimise dilution for shareholders at this time. The net proceeds of the placing will allow us to continue the development of our Mancos and Paradox assets, where we anticipate spudding our first well in the Uinta basin and commencing work on the completion of the 16-42 shut-in well in the Paradox basin in the coming weeks."