London-listed Reabold Resources (AIM:RBD) has fully exercised its option to further invest in Danube Petroleum Limited, increasing its existing ownership to around 51%.
This year the group has ramped up its interests in Danube, which it has previously described as a “highly accretive” investment.
The company has now subscribed for a further 1,427,604 shares, making up an £1,713,125 investment and placing Reabold’s overall stake in the company at 50.8%.
The operator, ADX Energy Limited, has elected to partially exercise its own corresponding options, subscribing for 241,929 shares and granting the group the remaining 49.2%.
Reabold says that Danube is now funded for a high impact work programme in 2020 which will include testing the IM-1 well and drilling the IM-2 well. As a result, the group will look to procure seismic data it considers “significant” in order to identify subsequent targets.
Sachin Oza, Co-CEO of Reabold says that the group believes a successful test at the IM-1 well will “lead to potential commercialisation.”
As a result, studies are now underway to assess viable options to bring the field into production “in parallel" with the preparations for drilling at IM-2.
In the meantime, ADX, on behalf of Danube, will commence drilling preparations at the IM-2 well where planning and licensing has already been completed -- currently the group expects this to commence during the third quarter of 2020.
Additionally, ADX is also undertaking work in the Parta Exploration License to acquire a US$1.5 million seismic programme funded by Tamaska Oil and Gas who, as a result, will earn a 50% interest.
The company clarified that the licence does not include the Parta sole risk area that contains both IM-1 and IM-2 which will continue to be owned 100% by Danube.
For the year ended 31 December 2018, Danube recorded a loss for the period of £84,543, and as at 31 December 2018, Danube reported net assets of £5.6 million.
Follow News & Updates from Reabold Resources here: