London-listed Reabold Resources (AIM:RBD) announced a $6.2 million funded 2020 Work Programme by Danube Petroleum on the Parta Licence Area onshore Romania.
Specifically, the funding package has been put in place for testing, appraisal drilling, and development studies on the Parta Sole Risk Area of which Reabold has a 100% interest in.
The package will also cover the seismic acquisition in the Parta Exploration licence of which Reabold will have a 50% interest in.
The 2020 programme's testing of the IMIC-1 well, specifically on Pannonian IV sand which is a proven reservoir, is anticipated for late February 2020.
Danube intends to complete IMIC-1 as a future production well, and so its testing has been determined by the time needed to manufacture and deliver down hole well equipment.
This is expected to minimise the cost to commercial production and ‘better preserve reservoir integrity’, Reabold explained.
Additionally, Danube expects to commence studies for the commercialisation of IMIC-1 gas and book reserves for the Parta Sole Risk Area by mid 2020.
"We are delighted with the progress being made at IMIC-1 to reach the production stage, which, we believe, should lead to a highly commercial development,” said Sachin Oza, co-CEO of Reabold.
Danube are also undertaking arrangements for the acquisition of 100 Km2 of 3D seismic in the Parta Exploration Licence and high resolution 2D seismic within the Parta Sole Risk Area.
The 3D seismic programme is to be funded by Parta Energy, a subsidiary of Tamaska who will offer $1.5 million and in return, earn 50% in the licence.
As highlighted by Reabold, the seismic acquisition is expected to commence in February 2020 and be completed within 40 days.
In addition, the IMIC-2 well in the Parta Sole Risk Area has been approved for a 2,200m drilling, with Danube anticipating its commencement for the third quarter of 2020, subject to slot availability and weather.
“The Parta licence continues to provide Reabold and its shareholders with extensive potential for future value creation and we are looking forward to what 2020 will bring,” added Oza.
Reabold, an investor in upstream oil & gas projects, holds a 50.8% equity interest in Danube Petroleum Limited.
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