24th Sep 2018 12:46
LONDON (Alliance News) - Oil & gas investment company Reabold Resources PLC said Monday that milestones reached by ADX Energy for the Parta appraisal program, onshore Romania, has led to the release of a second tranche of a GBP1.5 million investment.
With the approval of well location and program by the Romanian Licensing Authority, landowner approvals for access to the rig site, and a finalised tender process, Reabold has released the second tranche of investment into ADX subsidiary Danube Petroleum Ltd.
This completes its GBP1.5 million investment for a 29% stake in Danube Petroleum.
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 21.6 billion cubic feet contingent resource and 28.3 billion cubic feet in prospective resources.
Drilling of the first well in the Parta campaign is on track to start between the fourth quarter of 2018 to the first quarter of 2019.
"We are delighted to see continued operational progress on the Parta licence progressing as planned since our initial investment in December. The appraisal wells are low-risk from a geological perspective, having previously flowed gas, and the region benefits from low drilling and operating costs along with robust gas pricing and infrastructure. In the event of success, this will yield extremely profitable production for Reabold and our investors," said co-Chief Executive Officer Stephen Williams.
Shares in Reabold Resources were down 1.4% at 0.89 pence on Monday.
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