23rd Dec 2019 13:32
(Alliance News) - Reabold Resources PLC on Monday said investee Danube Petroleum Ltd has a new funding package in place in order to conduct drilling and testing at an asset in Romania.
An AUD6.2 million, or GBP3.3 million, funding plan for the Parta sole risk area as been outlined by Danube, in which Reabold has a 51% stake.
The funds will go towards appraisal drilling, testing and development study at the asset. It will also go towards Danube securing sole ownership of the Parta exploration licence.
Danube has a 100% stake in the sole risk area, a 19.4 kilometre portion at the Parta oil site. Danube also is the 50% owner of the Parta exploration licence.
Testing of the Iecea Mica-1 well in Parta is expected to begin in February, with appraisal and exploration drilling at Iecea Mica-2 targeted to commence in the third quarter of 2020.
Reabold Co-Chief Executive Sachin Oza said: "We are delighted with the progress being made at IMIC-1 to reach the production stage, which, we believe, should lead to a highly commercial development. Danube is funded for an exciting 2020 work programme in which it will test the IMIC-1 well, drill the IMIC-2 well, and acquire further the 2D and 3D lines to unlock the large resource potential in the licence.
"The Parta licence continues to provide Reabold and its shareholders with extensive potential for future value creation and we are looking forward to what 2020 will bring."
Shares in Reabold were down 0.3% at 0.73 pence each in London on Monday afternoon.
By Eric Cunha; [email protected]
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