Rose Petroleum has pulled out from some of its German exploration licences, citing the current political situation, which it said remains “unclear” in regard to exploration for hydrocarbons.
The company said its subsidiary Parkyn Energy has withdrawn from its Konstanz and Biberach exploration licences in Baden-Wurttemberg.
It will now focus efforts on licences in the US.
Matthew Idiens, chief executive officer, said: “With the current momentum we are building in respect of our Utah assets, we feel it is important that the Oil & Gas division of Rose remains firmly focused on those.
“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 & Gas division’s time and resources to Utah as we seek to maximise its value for shareholders.”
In a statement, the company said it did not see “any benefits” in pursuing the licences.
The licences had a further 15 months on them but said with the current “unclear regulatory requirements” there would not be sufficient time for the programme.
However the company will still retain its Weiden Licence in Bavaria as the project has conventional oil and gas targets which the current regulatory environment will support.