Reabold Resources Share News (RBD)

(Sharecast News) - Upstream oil and gas investment company Reabold Resources updated the market ahead of the start of well test operations at the Iecea Mica-1 (IMIC-1) well in Romania on Thursday, as part of the 2020 work programme.
The AIM-traded firm said the programme was planned 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, and ADX Energy is the operator of IMIC-1, the board explained.

It said mobilisation of the workover rig was expected to start on 19 June, with testing operations expected to begin around seven days after that.

The testing programme would include the installation of permanent production tubing and flow control equipment in the well, underbalanced perforation, and production testing of the well.

Reabold said the test objectives were to determine the production capacity of the well, and confirm the suitability of the gas composition for commercial sales.

After testing, the well would be shut in, awaiting expected commercial production subject to successful development.

Gas commercialisation studies were ongoing to determine the viability of two development options, including the delivery of sales gas to the grid at the nearby Satchinez-Calacea Gas Plant, or alternatively the conversion of produced gas to power and the connection to a high voltage power line located about two kilometres from the IMIC-1 location.

Reabold said the resource upside would be further assessed using high resolution 2D seismic, which would be acquired during the third quarter across IMIC-1 and potential IMIC-2 accumulations, in a bid to better define the extent of gas zones which it said had "substantial" stratigraphic upside.

"The work programme in Romania continues to progress and we look forward to the results from testing the IMIC-1 well, which will determine the production capacity of the well and confirm the suitability of the gas composition for commercial sales," said co-chief executive officer Sachin Oza.

"We are looking at ways to commercialise future production in Romania and are encouraged by the potential resource upside across the licence, which will be further assessed during the seismic programme across the IMIC-1 and IMIC-2 accumulations later this year."

At 1321 BST, shares in Reabold Resources were up 1.8% at 0.62p.