ROSE.L Regulatory News (ROSE)

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

Rose Petroleum plc

("Rose" or the "Company")

Update on restructuring of the Paradox project

Rose Petroleum plc (AIM: ROSE), the Rocky Mountain-focused oil and gas company, is pleased to provide an update on the restructuring of its project in the Paradox Basin, Utah, U.S. (the "project") further to its announcement on 14 October 2019.

Highlights:

·; Rose has been granted regulatory approval by the U.S. Bureau of Land Management (the "BLM") for two year lease extensions on circa 11,300 acres within the core of its project area.

·; The Company now holds a focused and contiguous land position of circa 19,900 acres with extended lease terms (as set out in note 1 below)1, the majority of which is covered by Rose's proprietary 3D seismic survey which was completed in 2018.

·; Rose gains an immediate 75% working interest in and operatorship of the extended acreage, rather than the earn-in structure through which the leases were formerly held.

·; There are no acquisition costs related to the extended acreage, and Rose will continue to make lease payments on the extended acreage. Overall lease payments have been substantially reduced via the restructuring now that non-core acreage has been relinquished.

·; The restructured project has estimated net 2C Contingent Recoverable Resources of circa 9 million barrels of oil equivalent ("mmboe") solely within the Cane Creek reservoir(2) with further exploration potential to be found in 5 shallower reservoir intervals.

Colin Harrington, Chief Executive Officer, stated:

"With the project JV agreement successfully renegotiated, the project land position now restructured and an increase in term now secured, we are in a strong position to recommence our farm-in process.

"The restructured project, combined with the increased focus that partners like the U.S. Department of Energy are bringing to the Paradox Basin, will make the project more attractive to potential funding partners.

"While the Company's immediate focus is to acquire near-term production in more mature Rocky Mountain Basins, the upside that can be delivered from our Paradox project makes it a highly attractive investment opportunity and ensures the project will remain a central part of Company's future focus and activity.

"I would like to thank our JV partner Rockies Standard Oil Company and the BLM for their continued commitment to Rose and the development of the project."

Restructuring update

Since its update to the market on 14 October 2019, Rose has worked with Rockies Standard Oil Company ("RSOC") and the appropriate regulatory bodies to complete the restructuring of the project.

In the October 2019 announcement, Rose outlined that it would focus its efforts on the most valuable project acreage. As part of this process, Rose and RSOC agreed to voluntarily terminate the original Federal Unit Agreement (the Gunnison Valley Unit ("GVU")). Subsequently, with the GVU Agreement terminated and pursuant to U.S. Federal Oil and Gas Regulation 43 CFR 3107.4, Rose can announce that a subset of leases, located within the project core have been extended for a further two years and added back into the Company's portfolio of leases.

The extension of these leases enables Rose to refocus on a core acreage position of circa 19,900 acres which contains an estimated net 2C Contingent Recoverable Resources of circa 9 million barrels of oil equivalent ("mmboe") associated with 22 drilling targets in the Cane Creek reservoir. The development of solely this reservoir could generate an estimated post-tax net present value to Rose of US$64m (at a 10% discount rate) ("NVP10")(3), a significant premium to the Company's current market capitalisation and which demonstrates the considerable potential of the project. The Company also recognizes further exploration potential in 5 shallower reservoir targets which could add further value to the project over time.

With the project restructuring completed and the land position now clarified, the Company will recommence the farm-out process.

Additionally, while the lease extensions are for an initial period of two years, they can be extended further through the creation of a new federal unit, the drilling of a new well on the new unit and establishing production of paying quantities of oil and gas.

Contacts:

Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD, Technical Adviser to the board of Rose Petroleum plc, who meets the criteria of a qualified person under the AIM Note for Mining and Oil & Gas Companies - June 2009, has reviewed and approved the technical information contained within this announcement.

Notes

1. This notification confirms Rose's lease position is as follows:

a. A 5,240 gross acre lease position with an ~9 year lease term remaining.

b. A 6,120 gross acre lease position with a 2 year extension, valid to October 2021.

c. Potential for the addition of a further 6,511 gross acres also with a 2 year extension, subject to expected partner approval.

d. A 1,920 acre lease which is currently suspended but which is expected to be extended in due course.

2. The 2C Contingent Resource assessment is based upon a proportional assessment of well count from the original 2C assessment, has been undertaken by Rose and has not been independently verified.

3. Oil and Gas Prices for Competent Persons Review ("CPR")

Gaffney Cline & Associates's 2Q 2018 WTI and Henry Hub price scenario (Table 1) was used for Rose's economic analysis of the project and included in the project CPR. Based on information provided to GCA by the Company realised prices are expected to include a US$10 per barrel discount for crude and a US$0.50/Mscf discount for natural gas.

 Table 1: GCA 2Q 2018 WTI and Henry Hub Price Scenario