28th Mar 2018 14:08
LONDON (Alliance News) - Reabold Resources PLC said on Wednesday that it completed the first tranche of investment in oil exploration company Danube Petroleum Ltd.
The oil & gas projects investor company said that under the first tranche it bought 375,940 shares in Danube at 100.00 pence per share. The second tranche, 1.1 million share issue, is expected in the third quarter of current year, after submission of an authorisation for expenditure for the first appraisal well.
Reabolt plans to invest a total of GBP1.5 million in Danube to acquire 29% interest.
Danube holds a 50% stake in the Parta licence, onshore Romania, and a 100% interest in the low risk appraisal campaign within the licence, comprising of two wells planned in the second half of 2018 testing a 33 billion cubic feet in prospective and contingent resources.
As part of the appraisal campaign, two gas discoveries, one of which has previously flowed gas to surface, will be re-drilled, the group said.
Reabold Resources Co-Chief Executive Officer Sachin Oza said: "Through an innovative deal structure, Reabold, through Danube, has a significant interest in a low-risk appraisal campaign aimed to test 33 BCF of prospective and contingent resources that will generate USD86.0 million NPV to Danube Petroleum in a success case."
The stock was trading 0.7% higher at 0.68 pence per share on Wednesday.
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