LONDON (Alliance News) - Rose Petroleum PLC Wednesday said it has pulled out of two exploration licenses in Germany due to the uncertain political situation for exploring unconventional targets in the country, meaning it is now almost entirely focused on its projects in the US.
The company's wholly owned subsidiary, Parkyn Energy Ltd has withdrawn from the Konstanz and Biberach exploration licenses in Baden-Württemberg, Germany, due to the current political situation for exploring unconventional hydrocarbons in Germany being unclear, said Rose in a statement.
"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," it said in a statement.
The company also thought the 15 months remaining on the licenses was too short a time period to complete the required work programme.
The company will retain its Weiden license in the state of Bavaria in south-east Germany, as the current regulatory environment supports the prospective conventional oil and gas targets within it and there is enough time on the license to complete a work programme, added Rose.
"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 and gas division's time and resources to Utah," said chief Executive Matthew Idiens.
In Utah, Rose Petroleum has projects targeting oil and gas from the Uinta and Paradox Basins in the east of Utah, alongside uranium assets in the state, which the company is currently trying to divest from. It also has a uranium asset in Arizona which it is trying to sell.
Rose shares were down 2.6% to 2.85 pence per share Wednesday morning.
By Joshua Warner; joshuawarner@all
