Reabold Resources (RBD)  in an announcement today updated investors on its Parta exploration permit within the Icea Mare production licence, Romania, held by through its 33% interest in Danube Petroleum Limited.

The Licence was acquired in October 2018, with a planned appraisal programme consisting of two wells, IM-1 and IM-2.

IM-1 sits within the production licence, and is expected to have a late-June 2019 spud. Reabold told investors that it believes it can be put into production in a “relatively short time frame”.

IM-1 is targeting multiple pay zones, including areas that had appraisal potential from historical wells drilled that have been tested, but not produced, in the 1980s. The company believes there is large exploration potential based on recently acquired 3d seismic data.

An independent report conducted in mid 2018 by ERC Equipoise Pte Ltd indicated a contingent and prospective resource potential of 18.8bcf on P50 basis.

Interestingly, IM-2 is located within the Parta Exploration Permit but sits outside of the production licence. A deeper exploration potential suggests a resource potential of 49.9 bcf across both IM-1 and IM-2 on a P50 basis.

The company expects to receive its environmental permit and construction authorisation, in March and April respectively, and for construction to begin in April and May.

Due to the desire to drill IM-1 from within the Production licence, there was a delayed formal transfer and issue of relevant government drilling permits. This coupled with a slow handover of a full data set for prospect evaluation meant spudding of IM-1 had to be later than planned, the company said.

An expected overpressure starting at around 2400 meters prompted the company to plan for a 7 inch casing to be run to depth of 2350 meters. The well will be then drilled through the overpressure zone with a 6 ⅛ inch hole reaching a total depth at approximately 2500 meters.

The company said that Danube is fully funded for the $3 million cost estimate for IM-1, not including well testing operations that are planned with a smaller lower cost workover unit.

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