TIDMRBD
RNS Number : 7453X
Reabold Resources PLC
23 December 2019
23 December 2019
Reabold Resources plc
("Reabold" or the "Company")
Romania Update
Reabold, the AIM investing company which focuses on investments
in pre-cash flow upstream oil and gas projects, is pleased to
advise that an extensive, firm work programme (the "2020 Work
Programme") is planned by Danube Petroleum Limited ("Danube"), in
which Reabold has a 50.8 per cent. equity interest, on the Parta
Licence Area onshore Romania. Danube has a 100 per cent. interest
in the Parta Sole Risk Area and will have a 50 per cent. interest
in the Parta Exploration Licence.
Highlights:
-- An AU$6.2 million funding package in place for:
testing, appraisal drilling and development studies on the Parta
Sole Risk Area; and
seismic acquisition in the Parta Exploration Licence.
-- Production testing of the Iecea Mica-1 ("IMIC-1") well planned to commence in February 2020.
-- Development feasibility studies commencing focussed on gas
sales via a nearby gas plant or gas to power via proximal high
voltage network.
-- Commencement of 3D seismic acquisition in Parta Licence and
high resolution 2D seismic in Parta Sole Risk Area expected to
commence in Q2 2020.
-- Iecea Mica-2 ("IMIC-2") appraisal and exploration drilling expected to commence in Q3 2020.
-- Extensive programme focussed on commercialisation of IMIC-1
gas, further reserves development at IMIC-2 and maturation of
prospects for drilling in the Parta Exploration Licence.
The 2020 Work Programme will include, within the Parta Sole Risk
Area: production testing of the recently drilled IMIC-1 well;
feasibility studies to optimally commercialise gas from IMIC-1;
drilling of the IMIC-2 appraisal well; and finalising planning and
regulatory approvals for a high resolution 2D seismic acquisition
programme. In parallel, Danube is finalising planning and
regulatory approvals for a 3D seismic acquisition programme in the
Parta Exploration Licence.
A total of AU$6.2 million will be deployed by Danube in the
Parta Sole Risk Area and the Parta Exploration Licence as a result
of funding contributions to Danube already provided by Reabold and
ADX Energy Ltd (the operator), as well as the farm-in funding to be
made by Parta Energy Ltd, a subsidiary of Tamaska Oil and Gas
("Tamaska").
2020 Work Programme Summary
IMIC-1 Production Testing
Testing of the IMIC-1 well in the Parta Sole Risk Area is
expected to commence in late February 2020. As Danube plans to
complete IMIC-1 as a production well, the commencement date of the
well test has been determined by the time needed to manufacture and
deliver down hole well equipment which are required for production
wells. Furthermore, completing IMIC-1 as a future production well
is expected to minimise cost to commercial production and better
preserve reservoir integrity.
Testing will concentrate on the Pannonian IV sand, which is a
proven reservoir and has the greatest reserves potential.
IMIC-1 Feasibility Studies and Reserves Declaration
Danube will also commence studies for the commercialisation of
IMIC-1 gas and the booking of reserves for the Parta Sole Risk
Area. Two viable commercialisation options are being progressed in
parallel including:
-- delivery of sales gas to the nearby Calacea Gas Plant; or
-- the conversion of produced gas to power and the connection to
a high voltage power line located approximately 2km from the IMIC-1
location.
Subject to a successful production test and the determination of
a viable commercialisation option, Danube expects to book reserves
for the IMIC-1 well and initiate development by mid 2020.
3D and 2D Seismic Acquisition
Danube is currently undertaking planning, regulatory approvals
and finalising contractual arrangements for the acquisition of 100
Km(2) of 3D seismic in the Parta Exploration Licence as well as
high resolution 2D seismic within the Parta Sole Risk Area that
includes the IMIC-1 well and the planned IMIC-2 well location.
The 3D seismic programme will be funded by Parta Energy Ltd, a
subsidiary of Tamaska, pursuant to a farm-in agreement where
Tamaska will fund a US$1.5 million seismic programme to earn a 50
per cent. interest in the Parta Exploration Licence. The Parta 3D
programme is likely to generate high quality appraisal and
exploration targets.
The high resolution 2D seismic lines will be acquired across the
IMIC-1 and IMIC-2 accumulations. The programme is designed to
better define the extent of gas zones where Danube has identified
substantial stratigraphic upside volumes following the recent
drilling of the IMIC-1 well.
Seismic acquisition is expected to commence in February 2020 and
be completed within 40 days.
IMIC 2 Appraisal Drilling
Danube has approved the IMIC-2 well in the Parta Sole Risk Area.
Planning and licensing for the IMIC-2 well has already been
completed and Danube will order long lead items (well heads and
casing) as soon as possible to enable an early drilling date.
At present Danube expects that drilling will commence during the
third quarter of 2020. Commencement of operations is determined by
drilling rig slot availability. This timing is also optimal from a
weather perspective for site preparation. The IMIC-2 well has a
planned total depth of 2,200 metres with approximately 23 days to
drill and evaluate.
Sachin Oza, co-CEO of Reabold, commented:
"We are delighted with the progress being made at IMIC-1 to
reach the production stage, which, we believe, should lead to a
highly commercial development. Danube is funded for an exciting
2020 work programme in which it will test the IMIC-1 well, drill
the IMIC-2 well, and acquire further the 2D and 3D lines to unlock
the large resource potential in the licence.
The Parta licence continues to provide Reabold and its
shareholders with extensive potential for future value creation and
we are looking forward to what 2020 will bring."
For further information please contact:
Reabold Resources plc c/o Camarco
Stephen Williams +44 (0) 20 3757 4980
Sachin Oza
Strand Hanson Limited (Nominated and Financial
Adviser)
James Spinney
Rory Murphy
James Dance +44 (0)20 7409 3494
Stifel Nicolaus Europe Limited - Joint Broker
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0) 20 7710 7600
Whitman Howard Limited - Joint Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Turner Pope Investments (TPI) Ltd - Joint
Broker
Andy Thacker
Zoe Alexander +44 (0) 20 3657 0050
Camarco
James Crothers
Ollie Head
Billy Clegg +44 (0) 20 3757 4980
This announcement contains inside information.
Notes to Editors
Reabold Resources plc is an investing company investing in the
exploration and production ("E&P") sector. The Company's
investing policy is to acquire direct and indirect interests in
exploration and producing projects and assets in the natural
resources sector, and consideration is currently given to
investment opportunities anywhere in the world.
As an investor in upstream oil & gas projects, Reabold aims
to create value from each project by investing in undervalued,
low-risk, near-term upstream oil & gas projects and by
identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made
through its investments into larger projects in order to grow the
Company. Reabold aims to gain exposure to assets with limited
downside and high potential upside, capitalising on the value
created between the entry stage and exit point of its projects. The
Company invests in projects that have limited correlation to the
oil price.
Reabold has a highly-experienced management team, who possess
the necessary background, knowledge and contacts to carry out the
Company's strategy.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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