Sachin Oza, Co-CEO commented “I am pleased to see the ongoing progress made on our Romanian investment at Parta as we look forward to drilling in Q1 2019. With the acquisition of the Iecea Marea Production Licence, Danube, on successful appraisal, has the ability for rapid tie in of gas production particularly given the proximal location of the active Calacea gas plant.”
Reabold now holds a 29% shareholding in Danube with the remaining 71% held by ADX Energy (ASX: ADX)
Reabold, the oil and gas investing company, is pleased to announce the completion of a Sales and Purchase Agreement (“SPA”) by Danube Petroleum (“Danube”) to purchase a 100% interest in the Iecea Marea Production Licence (“the Licence”) from the Romanian production company Amromco Energy SRL (“Amromco”).
The operator of the Licence has contracted a rig and long lead items have been ordered for drilling the first well in Q1 2019.
Under the terms of the SPA, Danube, in which Reabold has a 29% interest, paid Amromco an initial fee of EUR 10,000, which, now having been completed, will be followed by a further EUR 20,000 and a 5% royalty for production from future wells located within the Licence.
Note 1: ADX holds a 71% shareholding in Danube Petroleum Limited (Danube). The remaining shareholding in Danube is held by Reabold Resources Plc following the recent completion of a US$ 2million investment in Danube. Danube via ADX Panonia holds a 50% interest in the Parta Exploration license (including a 100% interest in the Parta Appraisal Sole Risk Project) and a 100% interest in the Iecea Mare Production license.
The acquisition of the Licence enables the Parta Appraisal well to be drilled from an optimal location within the Licence area and enhances Danube’s ability to organically develop other high-value gas production opportunities in the area.
Further to the Company’s announcement of 24 September 2018, ADX and Reabold have agreed to extend the option funding arrangements to 30 November 2018. Reabold has an option (at Reabold’s election) to invest further funding into Danube of US$0.5 million and ADX will either invest directly or source investment from a third party of US$0.5 million on the same terms as Reabold’s Tranche 1 and Tranche 2 investments.
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