19th Mar 2019 14:21
LONDON (Alliance News) - Reabold Resources PLC on Tuesday said the operator of the IM-1 well delays spudding to late June as it is awaiting drilling permits.
Reabold shares were trading 6.1% lower on Tuesday at 0.56 pence each.
The AIM-listed company said it noted a report from ADX Energy Ltd regarding the Parta appraisal operations in Romania.
Reabold holds 33% stake in Danube Petroleum Ltd - the sole owner of the Parta exploration permit - with ADX holding the reminder.
The planned Parta appraisal programme consists of two wells, IM-1 and IM-2, with IM-1 expected to spud in late-June. At the time of the Iecea Marea licence acquisition in October, which includes Parta appraisal, the company expected to start drilling in the first quarter of 2019.
The spudding of IM-1 will be later than previously planned as the well has to be formally transferred from Amromco Energy SRL - the previous owner of Iecea Marea licence - before the government authority could issue a drilling permit.
IM-1 is targeting multiple pay zones, including established appraisal potential from historical wells drilled in the 1980s, which were tested but never produced.
An independent report prepared by engineering consultant ERC Equipoise Pte Ltd in mid-2018 assessed the contingent and prospective resource potential of IM-1 of 18.8 billion of standard cubic feet of gas.
There are two key remaining milestones prior to the expected spud of IM-1, Reabold said, being the environmental permit and the construction authorisation.
Looking ahead, the company said ADX, as the contract operator, is confident that these permits and authorisations will be available by the end of March and April, respectively, enabling site construction to be undertaken in April and May.
The most likely cost estimate for the IM-1 well is USD3 million, Reabold said, including evaluation, logging and running casing.
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