Reabold Resources Plc (LON: RBD), the investor in pre-cash flow upstream oil and gas projects, notes today the Operations Update announced by ADX Energy Ltd in relation to the Iecea Mica-1 well, part of the Parta appraisal programme in Romania. Reabold has a 37.5 per cent. interest via its shareholding in Danube Petroleum Limited.
Access road and well site construction commenced
SUMMARY OF RELEASE
• Construction Authorizations issued for well pad and access roads on 28 May.
• Permits to Commence Works for well pad and access roads on 7 June.
• Construction works on the 1.6 km access road commenced on 10 June.
• Well pad works planned from 19 June to 19 July.
• Rig mobilisation expected to commence thereafter and take 5 days prior to well spud.
IECEA MICA-1 WELL SUMMARY
• The upper 2350 metres of Iecea Mica 1 (IM-1) appraisal well is effectively a redrill of a historic discovery well drilled in the 1980’s.
• IM-1 will evaluate multiple gas zones mapped on 3D seismic including a flow tested gas zone and an uncontrolled gas flow in the historic discovery well.
• The Contingent Resources based on an Independent Experts Report of the historic well data with recently acquired 3D seismic is 6.1 Bcf 2C and Prospective Gas Resources are 13 Bcf Best Estimate potential.
• The well will be deepened to a depth of 2600 meters to evaluate larger untested exploration potential which is a proven Oil play in other fields in the basin.
• The Best Case Prospective Resource for the deeper exploration upside potential accessible by the well that is mapped on 3D seismic is 16 Bcf (for a gas success case) and 2 MMBBLS (for an oil success case).
Note: Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an 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.
Resources: Refer to ASX announcement 20/3/2019, ADX confirms that it is not aware of any new information or data that materially affects the information included in that market announcement and that all the material assumptions and technical parameters underpinning the estimates in that market announcement continue to apply and have not materially changed.
• The well is not only highly prospective, it has the benefit of being proximal to infrastructure for both gas, oil and electricity enabling low cost, highly profitable commercialisation.
• If the deeper exploration target is successful it is expected to de-risk several follow up prospects with good upside potential which ADX has identified both on 3D and 2D seismic ADX Energy Ltd (ASX Code: ADX), is pleased to advise following the receipt of environmental approvals and construction authorisations on 28 May for the Iecea Mica-1 well in the Iecea Mare production license, Romania, that site works commenced for the construction of a 1.6 km access road to the rig site and is expected to conclude on the 24th of June. The drill site was partially flooded up till the 12th of June and hence not accessible with earthmoving machinery. Favourable weather conditions are expected to enable well site construction to commence on the 19th of June and completion on 19th of July. Rig mobilization which will take 4-5 days is expected to take place after completion of well site construction.
The Iecea Mare production license is owned 100% by ADX Energy Panonia SRL, a wholly owned subsidiary of Danube Petroleum Limited (Danube). ADX holds a 63% shareholder interest in Danube and is contract Operator for the License and the surrounding Parta Exploration Permit in which the License is located. The well is being funded through equity contributions of approximately US$3 million in Danube by 37% shareholder, Reabold Resources PLC.
ADX will provide further regular updates as we progress towards the spud date of IM-1 well.
Asset Ownership Structure
ADX holds a 63% shareholding in Danube Petroleum Limited (Danube). The remaining shareholding in Danube is held by Reabold Resources Plc. Danube via its’ Romanian subsidiary, ADX Panonia, holds a 100% interest in the Parta Exploration license (including a 100% interest in the Parta Appraisal Sole Risk Project) and a 100% interest in the Iecea Mare Production license.