TIDMRBD
RNS Number : 2948U
Reabold Resources PLC
11 July 2018
11 July 2018
Reabold Resources Plc
("Reabold" or "the Company")
Parta Appraisal Project - Independent Evaluation Results
Reabold is pleased to note the announcement by ADX Energy Ltd
("ADX") (ASX Code: ADX) that an Independent
Review of the Parta Appraisal Programme (in which Reabold has an
interest via its 29 per cent. shareholding in Danube Petroleum
Limited) has recently been completed by ERC Equipoise Pte Ltd
(ERCE). The assessment includes
the two planned appraisal wells in the Parta Exploration License
and recently acquired Iecea Mare production license. ADX, the
Operator, reports that the results confirm previously announced
contingent resource estimates and exceed previously announced
prospective resource estimates. ERCE is an international,
independent consultancy specialising in geoscience evaluation,
engineering and economic assessment.
.
Stephen Williams, co-CEO commented:
"We are delighted that the Independent Review has confirmed the
potential for this derisked and high impact appraisal project, and
we very much look forward to the targeted spud later this
year."
Sachin Oza, co-CEO commented:
"The Parta appraisal programme provides a clear example of
Reabold's strategy to invest in opportunities which catalyse near
term drilling into technically derisked assets with extremely
attractive economics. In addition to the initial appraisal
campaign, we are also extremely excited about the prospectivity of
the Parta license as a whole."
Set out below is the full text of the ADX announcement. Note: It
should be noted that all resource estimates are stated gross.
Summary of Resource Review Results
ADX contingent resource estimates are confirmed by ERCE and a
significant increase in aggregated resource potential is estimated
by ERCE across all Unrisked Gas Prospective Resource categories for
the two well program compared to that previously announced by ADX.
A comparison of ERCE and ADX unrisked resource estimates is shown
in the table below (source: ERCE Independent Evaluation Report and
ADX ASX announcement 8/8/2017)
Parta Appraisal Program Unrisked Resource Estimate Comparison
(Bscf Recoverable @ 100% Equity Interest (Note 6) )
---------------------------------------------------------------------
Contingent Resources (Note 2, 4, 7) 1C 2C 3C
---------------------------------------------- ------ ------ -----
ERCE (Estimate) 6.8 21.6 59.0
---------------------------------------------- ------ ------ -----
ADX (Estimate) 8.0 21.0 59.0
---------------------------------------------- ------ ------ -----
% age change - ERCE compared to ADX -15% 3% 0%
---------------------------------------------- ------ ------ -----
Prospective Resources (Note 3, 5, 7) Low Best High
ERCE (Estimate) 10.5 28.3 67.7
------ ------
ADX (Estimate) 7 19 56
---------------------------------------------- ------ ------ -----
% age change - ERCE compared to ADX 50% 49% 21%
---------------------------------------------- ------ ------ -----
Note 1: The work carried out using international resources and
reserves reporting and classification standard adopted by the ASX
and the LSE - the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources
Management System ("PRMS")
Note 2: Contingent Resources are those quantities of petroleum
estimated, as at a given date, to be potentially recoverable from
known accumulations but, for which the applied project(s) are not
yet considered mature enough for commercial development due to one
or more contingencies. 1C, 2C, 3C Estimates: in a probabilistic
resource size distribution these are the estimates that have a
respectively 90% (P90), 50% (P50), and 10% (P10) probability that
the quantities actually recovered will be exceeded.
Note 3: Prospective Resources are those estimated quantities of
petroleum that may be potentially be recovered by the application
of a future development project(s) relate to undiscovered
accumulations. These estimates have both as associated risk of
discovery and a risk of development. Further explorations appraisal
and evaluation is required to determine the existence of a
significant quantity of potentially moveable hydrocarbons.
Note 4: The total Contingent Resources estimates presented in
the table above are unrisked and have not been adjusted for the
chance that the Contingent Resources will be developed and will
reach commercial producing status
Note 5: The total Prospective Resources estimates presented in
the table above are unrisked and have not been adjusted for the
chance of discovery and chance of development
Note 6: ADX holds its beneficial interest in the Contingent
Resources and Prospective Resources via the special purpose vehicle
Danube Petroleum Limited (Danube). ADX currently holds a 91% share
holding in Danube. Upon the completion of tranche 2 of the US$2
million funding transaction with Reabold Resources Plc, ADX will
hold a 71% interest in Danube. Danube in turn holds a 100% interest
in the Romania exploration and production license holding company
ADX Panonia.
Note 7: The gas resources estimates presented are gross raw gas
and do not account for shrinkage fuel and flare or inerts.
"Bscf" means thousands of millions of standard cubic feet
"1C" means Low Estimate Contingent Resources
"2C" means Best Estimate Contingent Resources
"3C" means High Estimate Contingent Resources
ADX commissioned the review on behalf of its' subsidiary ADX
Energy Panonia Srl ("ADX Panonia"), the license holder of the Parta
Exploration Permit and Iecea Mare Production License onshore
Western Romania. ADX Panonia holds a 100% interest in the Parta
Appraisal Program targeting the Contingent and Prospective
Resources defined by two historic discovery wells, Iecea Mare-35
and Carpinis-55, via a sole risk agreement with its Exploration
Permit partner RAG Austria AG ("RAG"). ADX Panonia recently entered
into an agreement to purchase a 100% interest in the Iecea Mare
production license (see Figure 1) which contains the tested Iecea
Mare-35 discovery well.
ADX holds its interest in ADX Panonia via a recently formed
special purpose vehicle Danube Petroleum Limited (Danube). ADX
currently holds a 91% share holding in Danube. Upon the completion
of tranche 2 of the US$2 million funding transaction with Reabold
Resources Plc, ADX will hold a 71% interest in Danube. ADX is the
operator of the exploration and production permits pursuant to a
Services Agreement with Danube.
Figure 1 - Map showing the Parta exploration license, the Iecea
Mare production license, Iecea Mica 1 and 2 well locations and the
Calacea Gas Plant
Please click on the following link to view the Map:
http://www.rns-pdf.londonstockexchange.com/rns/2948U_1-2018-7-11.pdf
Parta Appraisal Program
Utilising 3D seismic in the northern part of the Parta license
(Figure 1) ADX has delineated a number of oil and gas appraisal
drilling opportunities based on historic wells which were drilled
but never produced or adequately tested. The current Parta
Appraisal Program (Program) includes 2 gas redrill opportunities
defined by Iecea Mare-35 and Carpinis-55 discovery wells. The new
appraisal wells have been named Iecea Mica-1 (Iecea Mare -35
redrill) and Iecea Mica-2 (Carpinis-55 redrill), respectively. The
short distance to an active oil and gas processing facility
(Satchinez - Calacea) enables a rapid, low cost development. The
acquisition of the Iecea Mare production license allows the
location production facilities within the existing license area
without the need to secure a production license.
The Iecea Mica1 appraisal well will test a multiple pay zones in
a 3D seismic defined structural closure with an already
successfully tested gas reservoir zone, whereas the Iecea Mica 2
well targets two potentially large stratigraphic pinchout traps
defined by 3D seismic attributes, supported by gas flow from the
same reservoir as tested successfully in Well Iecea Mare-35.
An experienced operations team has been established in Romania
since the beginning of 2018 undertaking ongoing well planning,
licensing and contracting work with a view to being able to
commence operations by the end of 2018. Well spud dates will be
determined based on rig selection over the coming months.
Ian Tchacos, Executive Chairman of ADX, commented "The Board of
ADX is pleased that ERCE has independently supported our assessment
of the resource potential for Parta Appraisal Program. The
substantial increase in their assessment of Unrisked Gas
Prospective Resource is particularly important in terms of the
upside potential for the two wells. As announced previously the
combination of relatively shallow on shore drilling, low tie in
costs to existing infrastructure, strong gas pricing and excellent
fiscal terms can deliver excellent shareholder returns. We look
forward to the finalisation of licensing arrangements and the
commencement of operations."
For further details please contact:
Paul Fink Ian Tchacos
Chief Executive Officer Executive Chairman
+61 (08) 9381 4266 +61 (08) 9381 4266
www.adxenergy.com.au
PERSON COMPILING INFORMATION ABOUT HYDROCARBONS Pursuant to the
requirements of the ASX Listing Rules 5.41 and 5.42, the technical
and resource information contained in this presentation has been
reviewed by Paul Fink, Technical Director of ADX Energy Ltd. Mr.
Fink is a qualified geophysicist with 23 years of technical,
commercial and management experience in exploration for, appraisal
and development of oil and gas resources. Mr. Fink has reviewed the
results, procedures and data contained in this presentation and
considers the resource estimates to be fairly represented. Mr. Fink
has consented to the inclusion of this information in the form and
context in which it appears. Mr. Fink is a member of the EAGE
(European Association of Geoscientists & Engineers) and FIDIC
(Federation of Consulting Engineers).
DISCLAIMER: The estimated quantities of petroleum that may
potentially be recovered by the application of a future development
project relate to undiscovered accumulations. These estimates have
both an associated risk of discovery and a risk of development.
Further exploration appraisal and evaluation is required to
determine the existence of a significant quantity of potentially
moveable hydrocarbons.
ENDS
For further information please contact:
Reabold Resources plc c/o Camarco
Stephen Williams +44 (0) 20 3757 4980
Sachin Oza
Beaumont Cornish Limited
Roland Cornish
James Biddle
Felicity Geidt +44 (0) 20 7628 3396
Camarco
James Crothers
Ollie Head
Billy Clegg +44 (0) 20 3757 4980
Whitman Howard Limited - Joint
Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Turner Pope Investments (TPI)
Ltd - Joint Broker
Andy Thacker +44 (0) 20 3621 4120
Notes to Editors
Reabold Resources is an investor in upstream oil & gas
projects with an aim to create value from each project by investing
in undervalued, low-risk, near-term upstream oil & gas projects
and by identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made
through its investments into larger projects in order to grow the
Company. Reabold aims to gain exposure to assets with limited
downside and high potential upside, capitalising on the value
created between the entry stage and exit point of its projects. The
Company invests in projects that have limited correlation to the
oil price.
Reabold has a highly-experienced management team, who possess
the necessary background, knowledge and contacts to carry out the
Company's strategy. Management believes the current distress in the
oil & gas industry presents an opportune time to deploy capital
in undervalued assets with huge potential.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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