Reabold Resources ups its stake in Danube Petroleum
Francesca Morgan
Company News - 2 mins
09:15, 2nd December 2019

London-listed Reabold Resources (AIM:RBD) FOLLOW has fully exercised its option to further invest in Danube Petroleum Limited, increasing its existing ownership to around 51%. 

This year the group has ramped up its interests in Danube, which it has previously described as a “highly accretive” investment. 

The company has now subscribed for a further 1,427,604 shares, making up an £1,713,125 investment and placing Reabold’s overall stake in the company at 50.8%. 

The operator, ADX Energy Limited, has elected to partially exercise its own corresponding options, subscribing for 241,929 shares and granting the group the remaining 49.2%.

Reabold says that Danube is now funded for a high impact work programme in 2020 which will include testing the IM-1 well and drilling the IM-2 well. As a result, the group will look to procure seismic data it considers “significant” in order to identify subsequent targets.

Sachin Oza, Co-CEO of Reabold says that the group believes a successful test at the IM-1 well will “lead to potential commercialisation.”

As a result, studies are now underway to assess viable options to bring the field into production “in parallel" with the preparations for drilling at IM-2.

In the meantime, ADX, on behalf of Danube, will commence drilling preparations at the IM-2 well where planning and licensing has already been completed -- currently the group expects this to commence during the third quarter of 2020.

Additionally, ADX is also undertaking work in the Parta Exploration License to acquire a US$1.5 million seismic programme funded by Tamaska Oil and Gas who, as a result, will earn a 50% interest.

The company clarified that the licence does not include the Parta sole risk area that contains both IM-1 and IM-2 which will continue to be owned 100% by Danube.

For the year ended 31 December 2018, Danube recorded a loss for the period of £84,543, and as at 31 December 2018, Danube reported net assets of £5.6 million.

Follow News & Updates from Reabold Resources here: FOLLOW

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Comments
info
Login or register to post comments

Recent Articles
Watchlist