21st Jan 2014 10:24
LONDON (Alliance News) - Rose Petroleum PLC Tuesday said it has now completed the previously announced acquisition of two fracking licences in Germany.
The AIM-listed natural resources company said it has purchased the entire share capital of Parkyn Energy Holdings PLC, which owns 100% of the German licences through its subsidiary Parkyn Energy Germany Ltd, for EUR400,000.
The two concessions are shale gas prospects in an area covering 635,000 acres.
Shale gas hydraulic fracturing, otherwise known as fracking, involves extracting gas trapped in shale by pumping in pressurised water and chemicals. In the US, fuel prices have falling sharply as fracking has become commonplace across such states as North Dakota and Mississippi.
However, so far in Europe fracking has had mixed results, sometimes meeting strong local opposition or proving unreliable. In the UK, there have been major protests against the method, which critics fear will pollute water tables in rural areas and may cause small earthquakes.
Rose Petroleum shares were up 59% to 0.636 pence, putting it top of the AIM movers Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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