Reabold Resources Share News (RBD)

(Sharecast News) - Oil and gas-focussed investment company Reabold Resources updated the market on well flow test operations at the Iecea Mica-1 (IMIC-1) well in Romania as part of the 2020 work programme on Friday.
The AIM-traded firm said the programme was being carried out by Danube Petroleum, which has a 100% interest in the Parta Sole Risk Area and would, on completion of the farmout to Tamaska Oil & Gas, have a 50% interest in the Parta Exploration Licence.

Reabold holds a 50.8% equity interest in Danube, with ADX Energy the operator of IMIC-1.

It said the services engaged included coiled tubing, nitrogen and testing services, to acidise and flow test the IMIC-1 well.

A programme start date was expected within four weeks, with the work expected to take nine days.

The majority of the services were available in Romania, thus minimising potential delays due to Covid-19 related border restrictions.

Reabold said the decision to proceed was based on recently-recovered down hole pressure measurements, which confirmed non-depleted reservoir pressure and the gradual influx of reservoir fluids from down hole sampling, which recovered methane and drilling mud filtrate.

The programme objectives were to initiate flow by overcoming expected mud filtrate build up, which had been interpreted as preventing strong flow from the well, as well as determine reservoir fluid composition and the flow capacity of the PA IV reservoir.

Reabold explained that the expected benefits of acidisation were the stimulation of the well in order to create flow paths for gas beyond the mud filter cake, and drilling induced reservoir damage built up around the wellbore, while drilling and possible invasion into the reservoir.

Acidisation was described by the board as a "very common practice" for such reservoirs in western Romania, where over 20% of the reservoir was analysed from drilling cuttings to consist of calcite and siderite cement that could be dissolved by acid, thus enhancing near wellbore permeability.

"We are pleased to see the testing programme at IMIC-1 in Romania steadily approaching and we look forward to receiving the results of the flow test in due course," said co-chief executive officer Stephen Williams.

"The testing programme will confirm the suitability of the gas composition for commercial sales and we continue to be encouraged by the potential resource upside across the licence, which will be further assessed later this year."

At 1018 BST, shares in Reabold Resources were down 3.25% at 0.57p.