Last checked at 24 Sep 2018 07:00
24th September 2018
Reabold Resources Plc
("Reabold" or "the Company")
Danube Petroleum Investment Update
Reabold Resources, the oil and gas investing company, is pleased to announce the completion of key operational milestones by ADX Energy ("ADX") for the Parta appraisal program resulting in the release and completion of the second tranche of Reabold's £1.5 million investment in Danube Petroleum Limited ("Danube").
Operational Highlights:
· Approval of well location and program by the Romanian Licensing Authority (NAMR) for the first appraisal well
· Landowner approvals for access to rig site
· Finalisation of a tendering process for key long lead equipment purchases such as casing, tubing and well heads
Since Reabold's announcement of a £1.5 million investment into Danube, ADX Energy ("ADX"), the operators of the Parta licence, have made significant progress towards the drilling of a two-well appraisal campaign on the licence which includes the approval by the Romanian Licensing Authority of the well location and drilling programme for the first appraisal well, landowner approvals for access to the rig site and finalisation of a tendering process for key long lead equipment purchases. The contracting of a rig to drill the first well of the two-well appraisal programme is expected to be finalised shortly.
Due to these key operational milestones being met, Reabold has now released the second tranche of its investment into Danube, completing its two tranche £1.5 million investment for 29% of Danube Petroleum Limited.
ADX and Reabold had agreed that Reabold has an option (at Reabold's election) to invest a further funding of US$ 0.5 million and ADX will either invest directly or source investment from a third party of US$ 0.5 million on the same terms as Reabold's Tranche 1 and Tranche 2 investments. The deadline for this incremental investment has been extended to 31 October 2018.
The two-well appraisal campaign involves re-drilling historic gas discoveries with independently assessed contingent resource of 21.6 BCF and prospective resource of 28.3 BCF. The license contains excellent economic and technical potential due to its location within a proven and stable hydrocarbon region coupled with the existence of significant existing infrastructure, bringing low drilling and operating costs. Further to this, the region benefits from excellent fiscal terms and robust gas pricing.
The drilling of the first well in the Parta appraisal campaign is on track for Q4 2018/Q1 2019.
Stephen Williams, co-CEO of Reabold, commented:
"We are delighted to see continued operational progress on the Parta licence progressing as planned since our initial investment in December. The appraisal wells are low-risk from a geological perspective, having previously flowed gas, and the region benefits from low drilling and operating costs along with robust gas pricing and infrastructure. In the event of success, this will yield extremely profitable production for Reabold and our investors."
ENDS
Glossary:
2C reserves | Contingent Resources are those quantities of petroleum estimated, as at a given date, to be potentially recoverable from known accumulations but, for which the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. 1C, 2C, 3C Estimates: in a probabilistic resource size distribution these are the estimates that have a respectively 90% (P90), 50% (P50) and 10% (P10) probability that the quantities actually recovered will be exceeded |
For further information please contact:
Reabold Resources Plc Sachin Oza / Stephen Williams | c/o Camarco Tel. +44 (0)20 3757 4980 |
Strand Hanson Limited (Nominated and Financial Advisor) Rory Murphy / James Spinney / James Dance |
Tel. +44 (0)20 7409 3494 |
Camarco (PR) James Crothers / Oliver Head / Billy Clegg |
Tel. +44 (0)20 3757 4980 |
Whitman Howard Limited (Joint Broker) Hugh Rich / Grant Barker |
Tel. +44 (0)20 7659 1234 |
Turner Pope Investment (TPI) Ltd (Joint Broker) Andy Thacker |
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Notes to Editors
Reabold Resources is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.
As an investor in upstream oil & gas projects, Reabold aims to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.
Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy.