Last checked at 25 Oct 2018 07:00
25 October 2018
Reabold Resources Plc
"Reabold" or "the Company"
Danube Petroleum - Completion of Production Licence Acquisition
Reabold, the oil and gas investing company, is pleased to announce the completion of a Sales and Purchase Agreement ("SPA") by Danube Petroleum ("Danube") to purchase a 100% interest in the Iecea Marea Production Licence ("the Licence") from the Romanian production company Amromco Energy SRL ("Amromco").
The operator of the Licence has contracted a rig and long lead items have been ordered for drilling the first well in Q1 2019.
Under the terms of the SPA, Danube, in which Reabold has a 29% interest, paid Amromco an initial fee of EUR 10,000, which, now having been completed, will be followed by a further EUR 20,000 and a 5% royalty for production from future wells located within the Licence.
The acquisition of the Licence enables the Parta Appraisal well to be drilled from an optimal location within the Licence area and enhances Danube's ability to organically develop other high-value gas production opportunities in the area.
Further to the Company's announcement of 24 September 2018, ADX and Reabold have agreed to extend the option funding arrangements to 30 November 2018. Reabold has an option (at Reabold's election) to invest further funding into Danube 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.
Sachin Oza, Co-CEO commented
"I am pleased to see the ongoing progress made on our Romanian investment at Parta as we look forward to drilling in Q1 2019. With the acquisition of the Iecea Marea Production Licence, Danube, on successful appraisal, has the ability for rapid tie in of gas production particularly given the proximal location of the active Calacea gas plant."
This announcement coincides with an update released today by ADX which can be viewed through the following link:
http://adx-energy.com/documents/production-licence-approved---iecea-mare-romania.pdf
ENDS
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, demonstrated by existing investments in the UK, Romania and the United States.