TIDMRBD
RNS Number : 2882V
Reabold Resources PLC
02 December 2019
2 December 2019
Reabold Resources Plc
("Reabold" or the "Company")
Exercise of Danube Options
Highlights
-- Reabold has fully exercised its option to further invest in
Danube Petroleum Limited ("Danube"), taking its ownership to
approximately 51 per cent.
-- Danube is now funded for a high impact 2020 work programme,
including testing the IM-1 well, drilling the IM-2 well, and
acquiring significant seismic data to identify subsequent
targets
-- Commercialisation studies underway in relation to the IM-1 discovery
Reabold, the AIM investing company which focuses on investments
in pre-cash flow upstream oil and gas projects, is pleased to
announce that it has fully exercised its option to increase its
investment in Danube through the subscription for additional
shares. Following the Company's announcement of 22 November 2019,
which detailed Reabold's initial exercise of options to subscribe
for 200,000 Danube shares, Reabold has now exercised its options
over a further 1,427,604 Danube shares at a subscription price of
GBP1.20 per share, being an investment of GBP1,713,125.
The operator, ADX Energy Limited ("ADX"), has elected to
partially exercise its own corresponding options, subscribing for
241,929 Danube shares at GBP1.20 per share.
Following these investments, Reabold will own 50.8 per cent. of
Danube, with the remaining 49.2 per cent. held by ADX.
Danube will utilise the funding to carry out an impactful work
programme in 2020. The successful drilling result at the IM-1 well
has led to the decision to configure the well as a producer. A
production test is expected to take place in February 2020. In the
meantime, studies will commence to assess commercialisation options
for IM-1.
The investments announced herein also allow ADX, on behalf of
Danube, to commence preparations for the drilling of the IM-2 well.
Planning and licensing for the IM-2 well has already been
completed. As such, the timing of drilling will be determined by
long lead item delivery (well heads and casing) and rig
availability. ADX currently expects that drilling will commence
during the third quarter of 2020.
ADX is also undertaking planning and licensing work in the Parta
Exploration License to acquire a 100km(2) 3D seismic programme
("Parta 3D Programme"). The seismic programme will be funded by
Tamaska Oil and Gas ("Tamaska") pursuant to a farm in agreement
where Tamaska will fund a US$1.5 million seismic programme to earn
a 50 per cent. interest in the Parta Exploration Licence (see the
Company's announcement of 8 April 2019 for further information).
The Parta Exploration Licence does not include the Parta sole risk
area that contains both IM-1 and IM-2, which will continue to be
owned 100 per cent. by Danube. The aim of the Parta 3D Programme is
to generate high quality exploration targets with multiple stacked
oil and gas pay drilling opportunities.
In conjunction with the Parta 3D Programme, ADX intends to
acquire a number of high resolution 2D seismic lines across the
IM-1 and IM-2 accumulations to better define the extent of gas
zones where ADX has identified substantial stratigraphic upside
potential following the recent drilling of the IM-1 well.
For the period ended 31 December 2018, Danube reported a loss of
GBP84,543. As at 31 December 2018, Danube reported net assets of
GBP5.6 million.
The announcement from ADX can be viewed here:
https://adx-energy.com/documents/funding-for-romanian-appraisal-and-development.pdf
Sachin Oza, Co-CEO of Reabold, commented:
"We are delighted to be increasing our holding in Danube, with
its recent discovery at IM-1, as well as provide funding for the
work programme going forwards, including the proposed drilling of
IM-2. Further, we now believe that a successful test at IM-1 will
lead to potential commercialisation and are therefore able to start
work on bringing the field into production in parallel with the
preparations for drilling at IM-2."
For further information please contact:
Reabold Resources plc c/o Camarco
Stephen Williams +44 (0) 20 3757 4980
Sachin Oza
Strand Hanson Limited (Nominated and Financial
Adviser)
James Spinney
Rory Murphy
James Dance +44 (0)20 7409 3494
Stifel Nicolaus Europe Limited - Joint Broker
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0) 20 7710 7600
Whitman Howard Limited - Joint Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Camarco
James Crothers
Ollie Head
Billy Clegg +44 (0) 20 3757 4980
Notes to Editors
Reabold Resources plc 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.
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END
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