Reabold Resources lands farm-in agreement for Romania project

Oil and gas project investor Reabold Resources on Monday confirmed that its 33% owned investee company Danube Petroleum is planning a $1.5m seismic programme on the Parta licence in Romania.

Work on the plans, which include the drilling of the IM-1 appraisal well during the second quarter of 2019, will be undertaken by Danube and Parta Energy Pty Ltd, after a binding Heads of Agreement was signed between Danube's 100%-owned subsidiary, ADX Energy Panonia Srl, and Parta Energy.

Stephen Williams, Co-chief executive of Reabold, said: "Whilst the focus in Romania has always been on the imminent appraisal programme, a key attraction of our Danube position has always been the additional prospectivity and running room within the licence area. This seismic programme is a key step towards further unlocking that potential and building an E&P business of scale in Romania, without any additional capital required from Danube or Reabold."

Parta Energy will carry out exploration in Romania and fund the $1.5m programme in exchange for a 50% stake in the onshore Parta exploration licence, with Danube owning the remaining 50%.

The new development comes after Rohol-Aufsuchungs Aktiengesellschaft RAG pulled out of the Parta project in March.

"This is a highly encouraging development for Danube and we are also encouraged to see additional interest in putting capital to work in Romania. With RAG making the decision to withdraw from all E&P activities, their 50%. equity position has effectively been swapped into an enthusiastic new entrant that is putting an additional $1.5m into the asset, to further develop the Licence," said Williams.

Reabold Resources' shares were up 5.00% at 0.63p at 1336 BST.