31 Jan 2014 07:00
Rose Petroleum plc (AIM: ROSE)
("Rose" or the "Company")
Grant of new hydrocarbon licence in the Weiden Basin, Germany
Rose Petroleum plc ("Rose"), the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce the grant to Rose of a new concession covering circa 657,000 acres (2,662.4 km2) in the Weiden Basin, located in the State of Bavaria, south-east Germany, for hydrocarbon exploration (the "Licence").
The Licence commences on 1 February 2014 for an initial period of three years. The terms of the Licence obligates Rose to carry out a programme of works over a three year period to include 2D seismic and geophysical measurements designed to create a geological model of the licence area at an estimated cost of approximately €900,000.
The Licence represents the third licence granted to Rose following the recent acquisition of two licences (Konstanz and Beiberach) in southwestern Germany covering approximately 635,000 acres.
Matthew Idiens, CEO, said, "We are really encouraged by the continuing momentum we are gathering on the development of the Oil & Gas portfolio and are pleased by the approval of the Weiden licence which, similar to the Konstanz and Beiberach licences, will allow us to progress the conventional plays until the regulatory environment becomes clearer on unconventional plays. The obligations of the Weiden licence work programme are not too extensive, and should the initial results be positive, we will be in a position to fast-track a more extensive exploration programme. We will be looking to update the market further at the appropriate time."
The Licence
The Licence is located in the Weiden Basin, (north-east Bavaria, Germany), and is both a conventional and unconventional petroleum play. It is subject to a statutory period (expiring in mid-March 2014) during which any legal challenges to its grant can be filed. An overriding royalty interest (ORRI) of 0.5% is payable on any revenues to the original finder.
In 1989, the town of Weiden drilled a geothermal well (Weiden-1) which indicated the presence of oil in the Permian sandstones. A core, bleeding of oil, was recovered and, following analyses, it was reported that the oil came from Permian-Carboniferous source rocks.
Following this discovery, the town of Weiden then applied in 1989 for a petroleum exploration licence in a small area surrounding the town, but relinquished the area in 1991. The exploration efforts were subsequently taken up by the consortium of Preussag/Maxus, German and Texas headquartered companies. The permit awarded to these two companies was called "Oberpfalz". This permit included all the prospective area of the Weiden Basin and the consortium shot four new seismic lines. However, the permit was relinquished in 1994 and the seismic data was subsequently acquired by Gaz de France (Germany), when it took over Preussag. At the time, Preussag's chief geophysicist published some of the seismic data and structural maps. Several potential conventional targets are indicated in this seismic data.
Conventional prospectivity is expected to focus on the oil charged by Paleozoic source rocks, found in Permian sandstones, in structural traps. The seal rock is provided by interbedded shales. Oil was generated and expelled in the trough, as indicated by the Weiden-1 well. Rose plans to obtain the data from the Weiden-1 well which is available and currently held in a university depositary.
Rose has already obtained geochemical analyses recovered from outcropping Upper Carboniferous (Stephanian) black shales in the Weiden Basin, with TOC values of 16-18%. These shales demonstrate an early oil generation maturity. A working petroleum system therefore appears present in the form of a petroleum source rock, good reservoir sandstones and evidence that oil has been generated and expelled (from the Weiden-1 core). Rose has also used geochemical analysis to establish the existence of additional good quality black shale in the marine Lower Jurassic Posidonia Shales found in the Weiden Basin region with a TOC of 7.6%.
For further information, please contact:
Rose Petroleum Plc +44 (0) 20 7225 4595
Matthew Idiens
CEO
Allenby Capital (Nominated Adviser & Broker) +44 (0) 20 3328 5656 Jeremy Porter / Alex Price
Lionsgate Communications (Public Relations) +44 (0) 20 3697 1209 Jonathan Charles / Jessica Johnson
John M. Blair, B.Sc. M.Sc. Geology, Head of New Ventures, 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.
About Rose Petroleum
Rose Petroleum plc (AIM: ROSE) (formerly VANE Minerals plc) is a natural resources company focused on oil & gas exploration.
In late 2013, Rose raised additional capital and appointed an experienced Head of New Ventures and in-house technical team including geological and drilling expertise to pursue significant new Oil & Gas assets.
In January, the Company announced that it had completed the acquisition of two licences in southeastern Germany covering approximately 635,000 acres. Each licence area is understood to have at least four target pay zones. Management is looking to build on this initial acquisition to establish a balanced international asset portfolio. The Company also has existing mining assets for which it is developing as well as considering options to increase shareholder value.
For further information please consult the Company's website: www.rosepetroleum.com