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BUCHAREST (Romania), September 16 (SeeNews) - UK-based upstream oil company Reabold Resources said on Monday that it is increasing its interest in Danube Petroleum Ltd. in Romania to 41.6% from 37.5% via a subscription for new ordinary shares.
Reabold made the decision to grow its stake in the project following encouraging results at the Iecea Mica-1 appraisal well, it said in a press release.
Danube has a 100% working interest in the sole risk area within the Parta licence that includes IM-1, as well as 50% of the remainder of the Parta licence. Australian oil, gas and metal exploration company ADX Energy, which is the operator of the licence, has also participated in the subscription.
Danube intends to use the proceeds of subscription in the production testing of the IM-1 well.
Following completion of the subscription, Reabold will hold a 41.6% equity interest in Danube, with ADX holding the remaining 58.4%.
"We are delighted to be increasing our holding in Danube Petroleum following the successful IM-1 well result and in advance of the imminent testing of the well. Importantly, we have retained our option to invest another £2m at a fixed price, with the potential to increase our equity position significantly, and likely in support of the funding of the IM-2 well," Reabold co-CEO Sachin Oza said.
For the year ended 31 December 2018, Danube recorded a loss of 84,543 British pounds. The company reported net assets of 5.54 million pounds as at end-2018.
Reabold has an option to subscribe for a further 1,627,604 Danube shares at an issue price of 1.20 pounds per share, and ADX may subscribe for a further 651,042 Danube shares at an issue price of 1.20 pounds per share, if Reabold and ADX decide to do so within six weeks of receipt of well logging data from the final logging run on the first Parta appraisal well. Danube has agreed to extend the final date of exercise of these options from six to 12 weeks after final logging of the IM-1 well.
Earlier this month, Reabold and ADX said they have found hydrocarbons in multiple zones after completing the drilling at the Iecea Mica-1 well.
London Stock Exchange-listed Reabold Resources is an investing company that acquires direct and indirect interests in exploration and producing projects and assets in the natural resources sector.
ADX Energy is an oil, gas, gold and base metal exploration company with operated and non operated assets in Australia, Italy and Tunisia.
(£= 1.12 euro)