Reabold is pleased to note the announcement by ADX Energy Ltd (“ADX”) (ASX Code: ADX) that an Independent
Review of the Parta Appraisal Programme (in which Reabold has an interest via its 29 per cent. shareholding in Danube Petroleum Limited) has recently been completed by ERC Equipoise Pte Ltd (ERCE). The assessment includes
the two planned appraisal wells in the Parta Exploration License and recently acquired Iecea Mare production license. ADX, the Operator, reports that the results confirm previously announced contingent resource estimates and exceed previously announced prospective resource estimates. ERCE is an international, independent consultancy specialising in geoscience evaluation, engineering and economic assessment.
Stephen Williams, co-CEO commented:
“We are delighted that the Independent Review has confirmed the potential for this derisked and high impact appraisal project, and we very much look forward to the targeted spud later this year.”
Sachin Oza, co-CEO commented:
“The Parta appraisal programme provides a clear example of Reabold’s strategy to invest in opportunities which catalyse near term drilling into technically derisked assets with extremely attractive economics. In addition to the initial appraisal campaign, we are also extremely excited about the prospectivity of the Parta license as a whole.”
Set out below is the full text of the ADX announcement. Note: It should be noted that all resource estimates are stated gross.
Summary of Resource Review Results
ADX contingent resource estimates are confirmed by ERCE and a significant increase in aggregated resource potential is estimated by ERCE across all Unrisked Gas Prospective Resource categories for the two well program compared to that previously announced by ADX. A comparison of ERCE and ADX unrisked resource estimates is shown in the table below (source: ERCE Independent Evaluation Report and ADX ASX announcement 8/8/2017)
Note 1: The work carried out using international resources and reserves reporting and classification standard adopted by the ASX and the LSE – the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources Management System (“PRMS”)
Note 2: Contingent Resources are those quantities of petroleum estimated, as at a given date, to be potentially recoverable from known accumulations but, for which the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. 1C, 2C, 3C Estimates: in a probabilistic resource size distribution these are the estimates that have a respectively 90% (P90), 50% (P50), and 10% (P10) probability that the quantities actually recovered will be exceeded.
Note 3: Prospective Resources are those estimated quantities of petroleum that may be potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both as associated risk of discovery and a risk of development. Further explorations appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
Note 4: The total Contingent Resources estimates presented in the table above are unrisked and have not been adjusted for the chance that the Contingent Resources will be developed and will reach commercial producing status
Note 5: The total Prospective Resources estimates presented in the table above are unrisked and have not been adjusted for the chance of discovery and chance of development
Note 6: ADX holds its beneficial interest in the Contingent Resources and Prospective Resources via the special purpose vehicle Danube Petroleum Limited (Danube). ADX currently holds a 91% share holding in Danube. Upon the completion of tranche 2 of the US$2 million funding transaction with Reabold Resources Plc, ADX will hold a 71% interest in Danube. Danube in turn holds a 100% interest in the Romania exploration and production license holding company ADX Panonia.
Note 7: The gas resources estimates presented are gross raw gas and do not account for shrinkage fuel and flare or inerts.
“Bscf” means thousands of millions of standard cubic feet
“1C” means Low Estimate Contingent Resources
“2C” means Best Estimate Contingent Resources
“3C” means High Estimate Contingent Resources
ADX commissioned the review on behalf of its’ subsidiary ADX Energy Panonia Srl (“ADX Panonia”), the license holder of the Parta Exploration Permit and Iecea Mare Production License onshore Western Romania. ADX Panonia holds a 100% interest in the Parta Appraisal Program targeting the Contingent and Prospective Resources defined by two historic discovery wells, Iecea Mare-35 and Carpinis-55, via a sole risk agreement with its Exploration Permit partner RAG Austria AG (“RAG”). ADX Panonia recently entered into an agreement to purchase a 100% interest in the Iecea Mare production license (see Figure 1) which contains the tested Iecea Mare-35 discovery well.
ADX holds its interest in ADX Panonia via a recently formed special purpose vehicle Danube Petroleum Limited (Danube). ADX currently holds a 91% share holding in Danube. Upon the completion of tranche 2 of the US$2 million funding transaction with Reabold Resources Plc, ADX will hold a 71% interest in Danube. ADX is the operator of the exploration and production permits pursuant to a Services Agreement with Danube.
Figure 1 – Map showing the Parta exploration license, the Iecea Mare production license, Iecea Mica 1 and 2 well locations and the Calacea Gas Plant
Please click on the following link to view the Map:
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