Reabold Resources Plc (LON: RBD), the investor in pre-cash flow upstream oil and gas projects, has today announced that, further to its announcement of 11 December 2018, it has agreed to subscribe for a further 375,940 ordinary shares in Danube Petroleum Limited at an issue price of £1.00 per share. The subscription will be funded from existing cash resources. Danube currently holds a 100 per cent interest in the Parta Exploration Licence and the Iecea Mare Production License, onshore Romania.
Accordingly, Reabold’s shareholding in Danube will increase from 33.3 per cent. to 37.5 per cent, with ASX-listed ADX Energy Ltd holding the remaining 62.5 per cent. Neither Reabold nor ADX have any remaining commitment or options to invest into Danube prior to the IM-1 result. As announced on 11 December 2018, Reabold may subscribe for a further 1,627,604 Danube shares at an issue price of £1.20 per share by electing to do so within six weeks of receipt of well logging data from the final logging run on the First Parta Appraisal Well. ADX may subscribe for a further 651,042 Danube shares at an issue price of £1.20 per share by electing to do so within six weeks of receipt of well logging data from the final logging run on the First Parta Appraisal Well.
In addition, ADX, on behalf of Danube, has agreed to engage Reabold for a period of 12 months to provide Corporate Advisory Services to Danube for an annual fee of approximately £75,000.
Stephen Williams, Reabold Resources Plc Co-CEO, commented:
“We are delighted to be able to increase Reabold’s equity stake in Danube ahead of the IM-1 appraisal well, which we believe to be a highly attractive target, both in its potential as the first producing well for Danube, but also in its illustration of the potential running room available within the wider licence. We eagerly anticipate the commencement of operations over the next few weeks.”
Danube was incorporated in England & Wales on 27 October 2017. To date, it has no published historical financial information.