9th Sep 2019 14:15
(Alliance News) - Reabold Resources PLC on Monday noted ADX Energy Ltd's announcement that the Iecea Mica-1 appraisal well in Romania is complete and has discovered multiple zones of hydrocarbons.
Reabold holds a 37% interest in Danube Petroleum. Danube, in turn, has a 100% working interest in the sole risk area of Parta which contains the Iecea Mica-1 well, plus a 50% interest in the rest of the Parta licence.
ADX Energy Ltd, which owns 63% stake in Danube, operates the well.
Reabold said successful discoveries had been made in the primary target and additional zones at Parta, and volumes exceeded pre-drill estimates.
The primary target "has shown high quality reservoir", which lends confidence to the expectation of a good rate of production. The well is now being prepared for production testing.
The Iecea Mica-1 intervals are now thought to contain 20 billion cubic feet of contingent resources from 5.6 billion cubic feet of contingent and 12.7 billion cubic feet of prospective resources.
Reabold Chief Executive Sachin Oza said: "We are delighted that the discovery at [Iecea Mica-1] has exceeded expectations and should lead to a highly commercial development in the near future. This result bodes well for the testing of IM-1 and for the drilling of IM-2.
"We see Romania as a significant source of opportunity, and the Parta licence provides Reabold with extensive running room for growth and further value creation above and beyond the near-term appraisal programme."
Shares in Reabold were up 1.6% at 1.30 pence in London on Monday afternoon.
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