TIDMRBD
RNS Number : 2164Y
Reabold Resources PLC
04 December 2017
4 December 2017
REABOLD RESOURCES PLC
"Reabold" or the "Company"
Investment in Danube Petroleum Limited
Reabold Resources Plc (LSE AIM:RBD) is delighted to announce
that it has signed an agreement with Danube Petroleum Limited, a
wholly owned subsidiary of ASX listed ADX Energy Ltd, (ASX:ADX) to
invest a total of GBP1.5 million for a 29 per cent. interest ("the
investment") in Danube Petroleum Limited ("Danube"). Danube is a
newly-formed UK private oil and gas company, which upon completion
of the transaction, will hold a 50 per cent. interest in the high
impact Parta licence ("Parta"), onshore Romania, and a 100%
interest in a low-risk appraisal campaign within Parta, comprising
of two wells planned in H2 2018 to test 33 BCF prospective and
contingent resources.
Highlights - Danube Petroleum Limited's "Parta" Project:
-- Parta licence is situated onshore, within a proven and stable
hydrocarbon region that benefits from low drilling and operating
costs
-- The two well Parta appraisal programme will redrill 1980s gas
discoveries, including one that flowed gas to surface
-- Recently acquired 3D seismic data has delineated considerable
untapped gas resources of 33 BCF gross in the primary reservoir
targets, with additional upside in other horizons
-- Onshore Romania requires very low capital expenditure with
nearby infrastructure, which will ensure fast payback following
first gas
-- Economics are highly attractive based on current gas prices
of $6.2/mbtu and the Parta licence is considered profitable at
substantially lower gas prices
-- The Parta licence includes additional exploration and
appraisal upside on the block with the potential for further total
un-risked gross prospective resources of approximately 300 BCF of
gas and 45 MMbbl of oil respectively identified on existing 2D
seismic
-- Danube Petroleum Limited gives Reabold a foothold in Eastern
Europe, providing the Company the opportunity to consolidate other
licences in the area
The investment, which includes the right for Reabold to appoint
a director to the Board of Danube, will be formed of an initial
375,940 new shares issued upon completion of the transaction at 1
GBP per share. This will be followed by a further 1,127,819 new
shares to be issued upon submission of an Authorisation for
Expenditure for the first appraisal well at 1 GBP per share.
Reabold has an option of a further 375,940 shares in Danube at 1
GBP per share, which can be actioned at the discretion of the
Company within 6 months after completion of the transaction.
The 33 BCF of prospective and contingent resource Parta
appraisal project ("Parta") will consist of two low-cost appraisal
wells, planned for drilling in 2018. The directors, based on
financial modelling of the prospective resources of the Parta
appraisal project, estimate an NPV (10) in the success case of up
to $86 million gross for a multi-well development across the two
appraisal projects.
Stephen Williams Co-CEO of Reabold, commented:
"We are delighted by today's announcement, which is the second
investment in line with Reabold's strategy. The investment into the
Parta licence gives Reabold a foothold into the prolific eastern
European onshore oil and gas space, giving the Company the
opportunity to consolidate other licences in the area."
Sachin Oza, Co-CEO of Reabold, commented:
"We are highly encouraged by the success we have had so far in
the implementation of our strategy to invest in low-risk, high
impact upstream oil and gas projects. With a portfolio that now
contains the Parta and Colter appraisal campaigns drilling in 2018,
and with a number of other projects currently under review, Reabold
shareholders can look forward to an exciting 2018."
Glossary:
MMbbl - Million barrels
BCF - Billion Cubic Feet
Mbtu - Million British Thermal Units
Contingent Resource - those quantities of petroleum estimated,
as of a given date, to be potentially recoverable from known
accumulations, but the applied project(s) are not yet considered
mature enough for commercial development due to one or more
contingencies.
Prospective Resource - those quantities of petroleum which are
estimated, on a given date, to be potentially recoverable from
undiscovered accumulations .
Note: All resource figures are taken from the ADX Energy Ltd
announcement of 8 August 2017 on the ASX.
For further information please contact:
Reabold Resources plc
Stephen Williams c/o Camarco
Sachin Oza +44 (0) 20
3781 8331
Beaumont Cornish Limited
Roland Cornish
James Biddle +44 (0) 20
Felicity Geidt 7628 3396
Camarco
Billy Clegg
James Crothers +44 (0) 20
Oliver Head 3781 8331
Whitman Howard Limited
Nick Lovering +44 (0) 20
Grant Barker 7659 1234
Turner Pope Investments
(TPI) Ltd
+44 (0) 20
Andy Thacker 3621 4120
Notes to Editors
Reabold Resources is an investor in upstream oil & gas
projects with an aim 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. Management believes the current distress in the
oil & gas industry presents an opportune time to deploy capital
in undervalued assets with huge potential.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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