16th Sep 2019 14:39
(Alliance News) - Oil & gas investment firm Reabold Resources PLC said Monday it has agreed to increase its interest in Danube Petroleum Ltd through a subscription for new Danube shares.
Danube currently has complete ownership in the sole risk area within the Parta Licence in Romania, as well as a 50% stake in the remainder of the licence itself. Oil, gas and minerals firm ADX Energy Ltd is the operator of the licence.
In the subscription, Reabold subscribed for 810,811 shares in Danube at a price of GBP1.00 per share through two tranches. The first tranche will be for 237,838 shares and the second tranche being for 572,972 shares.
In addition, ADX has subscribed for 540,541 shares in Danube. Following the subscription, Reabold now holds a 42% interest in Danube, while ADX now holds the remaining 58%.
For 2018, Danube reported a loss of GBP84,543, and as at the end of December the company reported net assets of GBP5.5 million.
"We are delighted to be increasing our holding in Danube Petroleum following the successful IM-1 well result and in advance of the imminent testing of the well. Importantly, we have retained our option to invest another GBP2 million at a fixed price, with the potential to increase our equity position significantly, and likely in support of the funding of the IM-2 well," said Co-Chief Executive Officer Sachin Oza.
Shares in Reabold Resources were down 0.9% at 1.24 pence on Monday afternoon.
Related Shares:
Reabold Resources