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.

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