2nd Dec 2019 14:11
(Alliance News) - Reabold Resources PLC on Monday said that it has raised its ownership in Danube Petroleum Ltd to 51% by investing further GBP1.7 million into Danube.
The oil & gas focused investor has exercised its option over a further 1.4 million Danube shares at GBP1.20 per share, an investment of GBP1.7 million. Last month, Reabold had exercised options to subscribe for 200,000 Danube shares.
Danube holds a 100% working interest in the sole risk area within the Parta licence in Romania that includes the Iecea Mica-1 appraisal well.
Sachin Oza, co-chief executive of Reabold, said: "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."
ADX Energy Ltd, the operator of Parta licence, also has decided to partially exercise its options, subscribing for 241,929 Danube shares at GBP1.20 per share, Reabold said.
Following the investments, Reabold will own 50.8% of Danube, with the remaining 49.2% held by ADX. Danube intends to use the funds from the option exercise to undertake its 2020 work programme.
Shares in Reabold Resources - which is headquartered in London - were down 4.2% at 0.79 pence on Monday afternoon.
By Tapan Panchal; [email protected]
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