Tag: RBD

Reabold Resources (LON: RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has announced the appointment, with immediate effect, of Stifel Nicolaus Europe Limited as joint corporate broker to the Company, alongside the Company’s Nominated and Financial Adviser, Strand Hanson Limited, and joint corporate brokers, Whitman Howard Limited and Turner Pope Investments (TPI) Ltd.

Reabold Resources (LON:RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, announced that, at the General Meeting of the Company held earlier today, all resolutions proposed were duly passed.

Application has been made to the London Stock Exchange for the 2,666,666,666 Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective, and that dealings in the Placing Shares will commence on AIM, at 8.00 a.m. on 29 October 2019.

Following Admission, the Company will have 6,730,630,476 Ordinary Shares in issue carrying voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, with effect from Admission, this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The Rathlin Cash Investment will complete once the Company is in receipt of the requisite proceeds from the Placing.  A further announcement will be made in due course.

Unless defined in this announcement, defined terms used in this announcement have the same meaning as set out in the Circular issued by the Company on 10 October 2019.

Reabold Resources (LON: RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has provided the following update on the Proposed Equity Swap in advance of the General Meeting of the Company to be held today.

The Company has significantly progressed discussions with certain Existing Rathlin Shareholders regarding the Proposed Equity Swap and the Board continues to expect that the transaction will complete on the terms described in the Circular.

Certain legal and administrative issues have caused a delay to entering into a binding Equity Swap Agreement. Accordingly, the Company will not be issuing any new Ordinary Shares in connection with the Proposed Equity Swap on 29 October 2019. Subject to shareholder approval, the Company will be issuing and allotting the Placing Shares as planned.

Notwithstanding the significant progress made to date, there can be no assurance that the Proposed Equity Swap will be completed.

Reabold Resources state further announcements will be in due course.

Reabold Resources plc (LON: RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has today announced the successful completion of the Placing announced on the 8th October 2019.

A total of 2,666,666,666 new Ordinary Shares have been conditionally placed with new and existing institutional investors by Stifel, at a price of 0.9 pence per new Ordinary Share, raising gross proceeds of £24 million.

The Placing Price represents an 12.2 per cent. discount to the mid-market closing price of 1.025 pence on the 8 October 2019, being the last practicable closing price prior to the announcement of the Placing.

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares of the Reabold Resources, including the right to receive all dividends or other distributions made, paid or declared in respect of such shares after the date of issue of the new Ordinary Shares.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is currently expected that Admission will become effective, and that dealings in the Placing Shares will commence on AIM, at 8.00 a.m. on 29 October 2019.

Further to its announcement of 4 October 2019 and continued market speculation, Reabold Resources (LON:RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, announced today that it is in advanced discussions with regard to:

·      Agreements to increase its interest in Rathlin Energy (UK) Limited (“Rathlin“) to up to 74.99 per cent., through a £16 million cash investment and, potentially, a £7 million equity swap with existing Rathlin shareholders; and

·      An agreement to increase its interest in Danube Petroleum Limited (“Danube“) to between 49 and 52 per cent. through the exercise of an existing option to invest an additional £1.95 million in Danube.

The Investments are proposed to be funded through a placing of new ordinary shares of 0.1 pence each in the capital of the Company with new and existing institutional investors to raise gross proceeds of, in aggregate, £20 to £24 million, and a potential issue of new Ordinary Shares to the holders of Rathlin shares in a proposed equity swap.

Highlights

·      Proceeds from the Placing are intended to be deployed into what Reabold believes are highly accretive investments in Rathlin and Danube, at significant discounts to the value of the respective operators’ discovered resource estimates, with the Placing proceeds used to fund further drilling and testing programmes to unlock further value potential.

·      £16 million cash investment into Rathlin, the operator and 66.67 per cent. owner of the West Newton discovery and wider PEDL 183 licence, alongside a proposed £7 million equity swap to be offered to existing Rathlin shareholders, to potentially increase the Company’s interest in Rathlin to up to 74.99 per cent., which could result in an effective interest of up to 50 per cent. in the licence.

·      Rathlin transaction follows the recent discovery of a 45 metre oil column and better than expected reservoir characteristics.

·      Exercise of a £1.95 million option to increase Reabold’s investment in Danube, with a 100 per cent. working interest in the Sole Risk Area within the Parta licence and 50 per cent. of the remainder of the Parta licence in Romania, to between 49 and 52 per cent.

·      Exercise follows the recent successful IM-1 appraisal well and the investment proceeds will fund the IM-2 well, planned for Q2 2020.

Stifel Nicolaus Europe Limited is acting as bookrunner to the Company in connection with the Placing. Strand Hanson Limited is acting as Nominated and Financial Adviser to the Company.

The Placing will be conducted through an accelerated Bookbuild which is expected to be launched at 4.45 p.m. on 8 October 2019. The Bookbuild is expected to close no later than 08.00 a.m. on 9 October 2019, but Stifel and the Company reserve the right to close the Bookbuild earlier or later, without further notice.

Reabold Resources (LON:RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, today noted recent press speculation relating to a potential fundraising pursuant to an equity placing with certain existing and new investors.

The Company confirms that it is in the process of taking indications of interest from investors with regard to an equity placing of between £20 – 24 million, with the majority of the proceeds intended to be utilised to meaningfully increase Reabold’s interest in Rathlin Energy (UK) Limited, to fund and accelerate the permitted, two well work programme at the West Newton project, and to exercise its existing option in Danube Petroleum Limited, providing the required funding for the IM-2 well.

The bookbuild, being conducted by Stifel Nicolaus Europe Limited, is expected to open at 4.45pm on Tuesday, 8 October 2019.

Further announcements will be made in due course.  

Reabold Resources plc (LON: RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has today announced that, further to the announcement on 16 September 2019, it has completed its second tranche investment in Danube Petroleum Limited. Following the completion by ADX Energy Ltd of its second tranche investment, which is expected to occur imminently, Reabold will hold 41.6 per cent. of Danube’s issued share capital.

Danube has a 100 per cent. working interest in the sole risk area within the Parta licence that includes IM-1, as well as 50 per cent. of the remainder of the Parta licence. ADX is the operator of the licence and the proceeds from Reabold and ADX’s respective subscriptions are intended to be utilised by Danube in the production testing of the IM-1 well.

Reabold Resources plc is an investing company investing in the exploration and production (“E&P”) sector. The Company’s investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.

As an investor in upstream oil & gas projects, Reabold aims 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.

The company’s long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. It 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.

Reabold Resources (LON:RBD), the AIM quoted investing company which focusses on investments in pre-cash flow upstream oil and gas projects, announced today its unaudited interim results for the six months ended 30 June 2019.

The Board is pleased to report on the significant progress made by the Company in the six months ended 30 June 2019, and post-Period end, in implementing its investment strategy in undervalued, low risk, near-term upstream oil and gas projects.

Highlights:

·    Two commercial oil discoveries on Monroe Swell licence in California, Burnett 2A and Burnett 2B

·  Discovery at West Newton appraisal well operated by Rathlin Energy (UK) Limited (“Rathlin”), potentially the largest hydrocarbon discovery onshore UK since 1973

·    Further investment of £750,000 in Corallian Energy Limited (“Corallian”), increasing Reabold’s interest to 34.9%

·    Further investment of £375,940 in Danube Petroleum Limited (“Danube”), increasing Reabold’s interest to 37.5%

·    Oil discovery at Corallian’s Colter project

·    Corallian awarded five new licences by the Oil and Gas Authority as part of the 31^st Offshore Licensing Round in the UK

Highlights – Post-Period end:

·    £2.65 million (before expenses) equity raising at 1.1 pence per share

·    Farm out of a 50% interest in the Parta Exploration Licence by Danube to a third party in exchange for it funding a US$1.5 million 3D seismic acquisition programme

·    Both VG-4 and VG-3 wells in California now in permanent production

·    Permits secured for up to three additional wells at West Brentwood in California

·    Corallian’s Curlew-A progressing to drilling, subject to completion of a farm-out

·    Further investment of £1,000,000 in Rathlin, increasing equity interest

·    High Court of Justice approved the Company’s order to cancel its share premium account

·  Commercial discovery of hydrocarbons at Danube’s Iecea Mica-1 (“IM-1”) Well, Parta, Romania, with volumes substantially exceeding pre-drill estimates

·    Subscription for a further investment of £810,811 in Danube in two tranches for a 41.6% interest when completed, together with an option to invest another £2m in Danube at a fixed price of £1.20 per share

·   Close to 1 million barrels of oil equivalent (boe) of Proven reserves attributed to Reabold’s net interest at West Brentwood, with associated value of US$19.3 million (NPV10) representing significant 6 times multiple on cash investment

The reporting period has seen significant progression in the Company’s investment portfolio.  In less than a year, Reabold has taken part in seven high-impact wells, the most recent of which being the potentially transformative West Newton A-2 appraisal well. We are delighted by this progress and, considering the potential of our existing portfolio, we have made further investments into these companies to facilitate further drilling activity.

Rathlin Energy

As at 1 January 2019, the Company had invested a total of £3,000,000 for a 37.08% interest in Rathlin’s issued share capital. Rathlin is the operator and 66.67% equity interest holder in PEDL183 licence, onshore UK.  This licence contains the significant West Newton A-1 gas discovery, which was drilled by Rathlin in 2014. The other equity interest holders in PEDL183 pursuant to a farm out are Union Jack Oil plc (“Union Jack”) and Humber Oil & Gas Ltd (“Humber”), each having a 16.665% interest in the licence.

The investment by Reabold was utilised, together with investments from Union Jack and Humber, to fund the drilling of a second appraisal well and, on 26 April 2019, Reabold was pleased to announce that drilling operations had commenced at the West Newton A-2 appraisal well, onshore UK.  Drilling operations consisted of one well being drilled into the Kirkham Abbey Formation gas discovery, aimed at de-risking the estimated 189 billion cubic feet equivalent (bcfe) Contingent Resources, before then targeting the deeper Cadeby Formation oil exploration target, which has gross Prospective Resources of 79.1 million barrels of oil equivalent (mmboe).

In our view, West Newton is extremely attractive, due to both its scale and its location and we are delighted to have been able to fund the appraisal well towards potentially proving up its considerable value.

On 17 June 2019, the Company was pleased to announce that the West Newton A-2 appraisal well had been successful, with West Newton potentially the largest hydrocarbon discovery onshore UK since 1973. 

Preliminary data suggests West Newton 2C Contingent Resources is at least the pre-drill estimate of 189bcf, the equivalent of 31.5mmbbl of oil.  The data from the A-2 appraisal well is subject to further testing, which is required to determine flow rates and inform the forward work programme.

The initial results from the appraisal well exceeded our expectations and have also shown a significant liquid hydrocarbon volume which further increased our excitement and is expected to materially increase the future value of the field. The deeper exploration target in the Cadeby formation encountered hydrocarbon shows with an oil saturated core.

The West Newton A-2 well was drilled as an appraisal of the West Newton A-1 discovery well. Based on the results of the West Newton A-1 well and the three-component 3D seismic data volume identifying an aerial extent of approximately 4,500 acres for the Kirkham Abbey reservoir, a Best Estimate Contingent Resource of 189bcfe of gas was identified in a Competent Persons Report compiled by Deloitte for Connaught Oil and Gas Limited (“Connaught”) and dated 1 June 2017. Connaught was previously the 100% equity holder in Rathlin, which was in turn the 100% holder of the PEDL 183.

The West Newton A-2 well was spud on 26 April 2019 and, on 9 June 2019, reached a total depth of 2,061 metres. A full suite of open hole logs was run and 28 metres of core was successfully cut and recovered from the Kirkham Abbey Formation.

On 29 August 2019, the Company was pleased to announce that analysis and initial testing at the West Newton A-2 well have led the Operator and project partners to believe that the West Newton project represents a significant oil and gas discovery rather than the gas discovery as originally anticipated. Initial open hole information on West Newton A-2 indicated that, in many respects, the Kirkham Abbey interval was consistent with that encountered in the West Newton A-1 well. However, the West Newton A-2 well indicated the presence of both gas and oil in the reservoir as opposed to it being a primarily gas project as originally anticipated.

Evaluation of the West Newton A-2 open hole data had identified an estimated gross hydrocarbon column of approximately 65 metres in the Kirkham Abbey Formation. A cased hole pulsed-neutron tool was run across the Kirkham Abbey zone and initial petrophysical evaluation identifies a gross oil column of approximately 45 metres underlying a gross gas column of approximately 20 metres within that interval.

The West Newton A-2 well exhibits encouraging porosities on logs and in core, particularly in the identified oil zone where in excess of 30 metres with good matrix porosities approaching 15% have been measured. The core also exhibits natural fracturing which is confirmed by an imaging log run across the entire Kirkham Abbey interval.

Cased hole logging and completion programmes were initiated on 6 August 2019, followed by extended well test operations, which commenced on 20 August 2019. However, with the indication of a potentially significant oil column, the extended well test has been temporarily paused, in order to review and revise the well test design, which will now focus on the potentially highly significant oil column. The Operator is currently reviewing the forward plan including the potential to restart the flow test under a different test design, subject to all necessary approvals.

Additionally, the West Newton A-2 well data provides a good tie to the high quality three component 3D seismic data volume that covers the entire West Newton project. The new data allows for a revised interpretation of the seismic volume incorporating the well and the newly identified gas over oil gross hydrocarbon column.

Following the integration and evaluation of the core, petrophysical, seismic and test data, the operator and partners intend to commission a revised and updated Competent Persons Report, in order to re-assess volumetrics and revise NPV10 values based on the information acquired from the West Newton A-2 well.

The realisation that West Newton appears to have a 45 metre oil column is a significant and exciting development in the evaluation of this cornerstone asset. We particularly look forward to further analysis and testing results, as well as a proposed updated Competent Persons Report, as, alongside our partners, we establish the optimum forward programme to maximise value out of this field for Reabold shareholders. In addition, subject to funding, the next well at West Newton will be planned to target the deeper Cadeby formation, which has the potential to add significant further resource upside. There are also other follow on exploration targets within this extensive licence area.   

On 22 August 2019, the Company was pleased to announce that, following the successful drilling result at West Newton A-2, Rathlin had raised, in aggregate, £1,793,000 by way of an Advanced Subscription Agreement, in which Reabold invested £1,000,000. The additional shares to be issued under the Advanced Subscription Agreement will be priced at the higher of either a 20% discount to the price achieved in the next Rathlin funding round or at £0.8427 per share, being the price per share of Rathlin’s previous fundraise.  Reabold currently holds a 24% economic interest in West Newton via its 36% holding in Rathlin and its ultimate economic interest will be confirmed once the next fundraising round is complete.

Danube Petroleum

As at 1 January 2019, the Company had invested a total of £1,879,700 for a 33.3% interest in Danube, a UK private oil and gas company, which at that time held a 100% interest in the high impact Parta licence (“Parta”), onshore Romania, and a 100% interest in a low-risk appraisal campaign within Parta, comprising of two wells planned to test 49.9 billion cubic feet (bcf) prospective and contingent resources.  The other shareholder in Danube is ASX listed, ADX Energy Ltd (ASX:ADX) (“ADX”), which is the operator of the Parta licence.

Reabold’s investment in Danube offers the Company exposure to the low-risk, high-impact, Parta licence, onshore Romania, in line with Reabold’s strategy, and a two-well appraisal campaign scheduled for 2019. The objective of the campaign is to test 49.9bcf of prospective and contingent resources, delineated by 3D seismic data, gross to Danube, which ADX estimates will generate US$128 million of NPV to Danube. 

Parta particularly stood out as an opportunity due to the low drilling and operating costs and low risk nature of the appraisal drilling from a subsurface perspective. The economics are extremely attractive based on current gas prices and the licence is considered profitable at considerably lower gas prices.

Danube selected IM-1 as the first drilling candidate for the appraisal programme as it sits within the IM Production Licence and Danube believes a successful well on the Production Licence can be put into production more readily.  IM-1 targeted multiple pay zones, including established appraisal potential from historical wells drilled in the 1980s, one of which was tested but never produced. An independent report prepared by ERC Equipoise Pte Ltd (“ERCE”) in mid-2018, assessed the contingent and prospective resource potential of IM-1 of 18.8bcf on a P50 basis. This excludes deeper exploration potential, which was also targeted by the IM-1 well. ERCE has assessed a contingent and prospective resource, excluding the exploration potential, of 49.9bcf across IM-1 and IM-2 on a P50 basis.

On 8 April 2019, Reabold was pleased to announce that a binding Heads of Agreement had been signed between Danube’s wholly owned subsidiary, ADX Energy Panonia Srl, and an Australian private company, Parta Energy Pty Ltd, (the “Farminee”) to fund a planned US$1.5 million seismic programme on Danube’s Parta Exploration Licence onshore Romania. Completion of this seismic programme will earn the Farminee a 50% interest in the Parta Licence (the “Farm-In”).  The Farm-In excludes the Parta Appraisal Programme Area, in which Danube has a 100% interest and contains the IM-1 appraisal well drilled in Q3 2019.  The Farminee is a company formed to undertake exploration in Romania, with guaranteed financial support to undertake its Farm-In obligations. The agreement is conditional on finalisation of a joint operating agreement and the extension of the Licence for a further two years.

Accordingly, as a result of the Farm-In, 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.

This was a highly encouraging development for Danube and we are also encouraged to see additional interest in putting capital to work in Romania.  With RAG, Danube’s previous partner, making the decision to withdraw from all E&P activities, their 50% equity position has effectively been swapped into an enthusiastic new entrant that is putting an additional US$1.5 million into the asset, to further develop the Parta licence.

Whilst the focus in Romania has always been on the imminent appraisal programme, a key attraction of our Danube position has always been the additional prospectivity and running room within the Parta licence area.  This seismic programme is a key step towards further unlocking that potential and building an E&P business of scale in Romania.

On 9 May 2019, the Company was pleased to announce that it had agreed to subscribe for a further 375,940 ordinary shares in Danube at an issue price of £1.00 per share, increasing Reabold’s interest in Danube from 33.3% to 37.5%. In addition, ADX, on behalf of Danube, 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.

On 7 August 2019, the Company announced that, following the mobilisation, setting up and commissioning of the Tacrom Futura Rig 6 on 5 August 2019, the IM-1 appraisal well had spudded.  On 27 August 2019, the Company provided an update on the drilling of the IM-1 appraisal well, with initial results very encouraging and indicative of a gas and oil discovery at the IM-1 well:

·    Well reached total depth of 2,335 metres measured depth (“MD”) and wireline logging was completed.

·    Number of potential Pannonian (“PA”) reservoirs had been intersected and logged with observed hydrocarbon shows including:

o  2 metre sandstone at a depth of approximately 1,863 metres MD with (C1) gas shows at the PA III stratigraphic interval;

o  5 metre sandstone at a depth of 2,033 metres MD with (C1) gas shows as expected at the PA IV stratigraphic level (the zone that was successfully tested in the historical well);

o  stratified sandstone and siltstone section from 2,140 to 2,163 metres MD (23 metres) including a number of potential reservoirs with heavier gas shows (C1, C2 & C3) in the PA V interval (a historical offset production well has produced oil from this interval); and

o  preliminary petrophysical analysis is expected to be completed and subsequently reported over the coming days. However, the results of the PA IV sand and the PA V sand are encouraging based on drilling and raw wireline log data assessed to date.

On 9 September 2019, the Company was pleased to provide an update as to the completion of the drilling of the IM-1 appraisal well, and the discovery of hydrocarbons in multiple zones:

·    successful discovery in both the primary target and additional zones, with volumes substantially exceeding pre-drill estimates;

·    operator volumetrics increased across IM-1 intervals to 20bcf of Contingent Resources from 6.1bcf of Contingent and 12.7bcf Prospective Resources;

·    the primary target, the PA IV interval, has shown high quality reservoir, giving confidence to good production rates; and

·    testing of the deeper basement target has been deferred, but prospectivity of the play had been upgraded and can be tested with a future well.

Successful discoveries had been made over a 14.5 metre section of net pay at a number of PA intervals; namely, the PA IV interval (the primary target of the well), the PA III and PA V formations. Overall, volumetrics across the intervals at IM-1 have been increased by ADX to 20bcf of 2C Contingent Resources, which compares favourably to the pre-drill best estimate of 6.1bcf of Contingent and 12.7bcf Prospective Resources. (ERCE Independent Resource Estimates for Parta Appraisal Programme).

The primary target, the PA IV interval, had measured porosities in excess of 20% and calculated permeabilities in the order of 50 to 100mD (millidarcies), suggesting reservoir quality is at the upper end of pre-drill expectations, giving confidence of strong gas production rates.

The PA III and PA V exploration intervals were shown to be hydrocarbon bearing with the PA V interval being assessed to be a gas condensate discovery. The PA V interval has previously been tested at a rate of 126 barrels of oil per day by the IM-30 well, 2.5km north of IM-1 and approximately 70 metres deeper.  The discoveries across the three intervals will be confirmed by the production testing programme for which the IM-1 well is now being prepared.

Attempts to drill into the deeper fractured basement play intersected a highly over-pressured zone associated with a strong drilling break, indicative of formation porosity and permeability, coincident with an increase in gas shows. Severe mud losses were experienced, indicating open fractures in the formation. The presence of highly permeable fractured zones proximal to basement, together with the gas shows encountered, has upgraded the prospectivity of the play across the licence area. The drilling of the basement play has been deferred to a later date for technical, commercial and safety reasons.

Reabold California

The Company, through its wholly owned subsidiary Gaelic Resources Ltd (“Gaelic”), is participating in multiple near-term, high-impact oil and gas leases in California, United States (the “Leases”). The acquisition of Gaelic in July 2018 was considered by management to be a perfect fit with the Reabold strategy, providing high-impact drilling opportunities in California, with considerably de-risked wells with low drilling costs and a fast path to monetisation.  The Company has been delighted with the commercial success of the drilling programme to date, demonstrating the effectiveness of this strategy.

Gaelic’s wholly owned subsidiary, Reabold California LLC (formerly Temporary Energy LLC) held the rights to earn-in to 50% of the Leases by drilling up to five wells by the end of 2019, pursuant to an agreement entered into with Sunset Exploration, Inc (“Sunset Exploration”) (the “Earn-in Agreement”).

The Leases are operated by Integrity Management Solutions (“IMS” or the “Operator”), a California operating company that leads direct operational decisions pertaining to the Leases.

West Brentwood

On 3 January 2019, the Company was pleased to announce that IMS had informed the Company of a successful drilling result at the VG-4 well. The well was drilled safely and within budget to a total depth of 4,700ft and had significant oil and gas shows in the targeted Second Massive formation. Halliburton wireline logging confirmed the presence of pay.

The well was put on production at a constrained rate due to the associated gas being produced with the oil and, on 29 April 2019, the Company announced that, work was underway to complete a tie into the nearby gas pipeline. This would allow the VG-4 well to produce oil at a higher rate, as well as allowing the sale of the gas produced from the well. 

On 29 July 2019, the Company announced that the VG-4 well had been put onto permanent production on 26 July 2019, following a successful ‘hot tap’ to tie into an existing gas pipeline in the vicinity of the field.  As announced on 28 January 2019, initial production testing at VG-4 saw the well produce at a choked level of 480bopd and 742 thousand cubic feet per day of gas. Both the VG-3 and VG-4 wells at West Brentwood are now in production. 

Permits for up to three additional wells at West Brentwood have now been secured. Given the success and prolific production rates seen at West Brentwood, Reabold, along with JV partner, Sunset Exploration, and the Operator, are planning to drill the VG-5 well at West Brentwood in Q4 2019.

As Reabold California now owns a 50% interest in the West Brentwood licence, all future wells, including VG-5, will be funded on a 50% working interest basis.  

On 26 September 2019, the Company was pleased to announce the conclusion of a third-party reserves report into its assets at the West Brentwood field in Kern County, California.

As part of an evaluation of the current and future potential value associated with its California business, Reabold commissioned Petrotech Resources Company Inc., based in Bakersfield California, to compile a reserves report, prepared in accordance with the 2007 Petroleum Resources Management System, to cover the West Brentwood field. 

The Proved Developed Producing (“PDP”) and Proved Undeveloped (“PUD”) reserves reported for oil and associated gas, net to the Reabold interest, are as follows:

	M bbl	MMscf	M boe
PDP (2 wells)	550.84	612.58	652.94
PUD (1 well)	267.32	363.60	327.92
Total	818.16	976.18	980.86

                Note: gas equivalence based on 6,000 scf/bbl

The report attributes an NPV10 value, net to Reabold, of US$19.31 million associated only with the PDPs at the VG-3 and VG-4 locations, and the PUDs at the upcoming VG-5 location, which is planned to be drilled this year. Additional prospectivity associated with other potential drilling locations at West Brentwood, along with “Probable” and “Possible” upsides, have not been included in the valuation calculation.

This corresponds to a total capitalised expenditure by Reabold at West Brentwood to 30 June 2019 of US$2.9 million, associated with the drilling and completion of the VG-3 and VG-4 wells. Almost all expenditure to date at West Brentwood has been 100% funded by Reabold in order to earn its 50% equity interest. Going forward, all expenditure will be funded by Reabold on a 50% basis.

Monroe Swell

Pursuant to the Earn-in Agreement with Sunset Exploration, Reabold paid the full drilling and completion costs of two wells within the Monroe Swell licence areas in order to earn a 50% net working interest in these licences.  Additional activity beyond the initial two wells will be funded by Reabold on a 50% working interest basis. Similar to West Brentwood, the wells on Monroe Swell targeted the up-dip parts of previously produced parts of the field which had been identified on 3D seismic.

On 11 March 2019, the Company was pleased to announce that IMS had informed the Company of a successful drilling result and oil discovery at the Burnett 2A well in California. The well was safely drilled and within budget, despite severe weather conditions, to a total depth of 922 metres, encountering the targeted Burnett and Lower Burnett sands.  Significant oil and gas shows were seen within these formations and Halliburton wireline logging has confirmed the presence of pay estimated in excess of 60 metres, ahead of pre-drill expectations.

On 22 March 2019, Reabold announced the commencement of drilling operations at the Burnett 2B well within the Monroe Swell field.  The drilling of Burnett 2B followed the successful Burnett 2A well drilled on the Monroe Swell field, as announced on 11 March 2019.  Following the Burnett 2A drilling results, Reabold and IMS, made the decision to seek accelerated permitting for the Burnett 2B well, which was successful.  The drilling rig was retained at Monroe Swell and was utilised for the drilling of the 2B well.

On 1 April 2019, the Company was pleased to announce that IMS had informed the Company of a successful drilling result and oil discovery at the Burnett 2B well in California, following on from the successful Burnett 2A well result.  The well was drilled safely and within budget, despite continued severe weather conditions, to a total depth of 894 metres, encountering the targeted Burnett and Lower Burnett sands. Significant oil and gas shows were seen within these formations and Halliburton wireline logging has confirmed the presence of estimated pay of 90 metres, ahead of pre-drill expectations. 

Following the drilling and completion of Burnett 2A and 2B, Reabold has completed its earn-in to the Monroe Swell licence area and has been assigned a 50% equity interest.

Success with the Burnett 2A and 2B wells is highly encouraging. With low drilling and completion costs, short drilling times and substantial running room, Monroe Swell can deliver substantial production growth coupled with highly attractive returns. 

On 29 April 2019, the Company was pleased to announce testing at the Burnett 2B well on the Monroe Swell field in California.  On 20 May 2019, the Company announced that the perforating and swabbing operation at the Burnett 2B and Burnett 2A wells had been completed and commercial flow rates have been confirmed at both wells. 

On 29 July 2019, the Company announced that IMS had informed the Company that, since the confirmation of commercial flow rates and being placed on production, the wells were yet to achieve stabilised production rates in line with testing, and that IMS planned to re-enter and clean out the perforated zones in order to restore production to the rates previously indicated by the test.

On 23 September 2019, the Company announced that IMS had completed the programme of re-entering and cleaning out the perforated zones and adding additional intervals, which were logged as pay but had not previously been perforated, to the Burnett 2B well.  Following the programme, the well responded with a flow rate of oil that was ahead of expectations. The current production facilities have insufficient capacity to deal with that flow rate and accordingly the well has been constrained to a rate of approximately 40 barrels of oil per day. Accordingly, work is currently underway to increase the capacity of the production facilities, which is expected to be completed shortly.

At the Burnett 2A well, a similar programme to re-enter and clean the perforated zones, with a view to increasing production levels, is ongoing and further updates will be provided in due course.

Grizzly Island

In view of the success of the West Brentwood and Monroe Swell programmes, drilling in Grizzly Island is now planned for 2020.

Production

For the six months ended 30 June 2019, the cumulative gross production of oil across the California portfolio was 15,407bbls (7,703bbls net to Reabold), inclusive of production during the development and testing programmes. Taking into account gas production, the total cumulative gross production during the six months ended 30 June 2019 was 17,840boe (8,920boe net to Reabold).  Total oil sales for the period were 15,141bbls (7,570bbls net to Reabold) with a gross value of US$1,010,000 (US$404,000 net to Reabold). 

With VG-4 now on unconstrained flow and the two Burnett wells coming into production, we expect to see a sharp increase in production in the near term, with additional drilling to follow. 

For the two months to 31 August 2019, the cumulative gross production across the California portfolio was 17,124boe (8,562boe net to Reabold). 

Corallian Energy

As at 1 January 2019, the Company had invested a total of £2,800,000 for a 32.9% interest in Corallian, a private UK oil & gas appraisal and exploration company, with a portfolio of UK oil & gas licences, including the Colter and Wick appraisal and exploration projects.  In 2019 to date, the Company has invested a further £750,000 in Corallian, increasing its equity interest to 34.9%.

In December 2018, Corallian received final regulatory approvals for the drilling of the Wick and Colter wells, which were drilled as a back-to-back programme using the ENSCO-72 jack-up rig, commencing first with the drilling of the Wick well, in December 2018, followed by the Colter well, in Moray Firth in the English Channel, in February 2019.

In January 2019, the Company announced the results of drilling in the Wick well, which had been drilled to a Total Depth of 1,000 metres, whereby the target Beatrice sands, whilst present in the well, were water bearing.  Whilst we were disappointed with this result, the Wick well was considered to be the highest risk prospect in our portfolio and not representative of the typical Reabold appraisal target.

In February 2019, the Company was pleased to report that Corallian encountered pay within the Colter South fault block.  The Colter well (98/11a-6) was drilled as a vertical well and reached a Total Depth of 1,870 metres MD (measured depth) in the Sherwood Sandstone.  The well confirmed a discovery in the Colter South Prospect for which Corallian had estimated a PMean recoverable volume of 15mmboe pre-drill.  Following this oil discovery at Colter South, the Company made an additional equity investment into Corallian, by way of an Advanced Subscription Agreement, whereby Reabold invested £750,000 in order to fund the sidetrack to appraise the discovery.  The purpose of the well had been to delineate the Colter structure accurately to complement the existing well and seismic data in the area, as the anticipated controlling fault between the Colter and Colter South areas, was further to the north than had been mapped on the 3D seismic. 

In March 2019, the sidetrack operation at the Colter well was completed and we were delighted to announce an oil discovery within the Colter well, with the sidetrack effectively providing two wells worth of data. The operator is now utilising the data derived from these well results, along with existing data, to determine the best forward plan.

On 5 June 2019, the Company announced that Corallian was offered five new licences by the Oil and Gas Authority as part of the 31^st Offshore Licensing Round, comprising blocks in frontier areas of the UK Continental Shelf.  Three of these new licences were awarded with joint venture partners, while the other two were offered on a 100% interest basis. The five licences comprise 22 blocks and part blocks, including one in the English Channel (49% interest), two in the Inner Moray Firth (40% interest each), one in the Viking Graben (100% interest) and one in the West of Shetland basin (100% interest).

On 31 July 2019, the Company announced that Corallian had completed its sixth round equity fundraise, raising £1,225,000 at £2.20 per share with a new shareholder (the “Round 6 Fundraise”). Completion of the Round 6 Fundraise enabled Corallian to allot the shares related to the Advanced Subscription Agreements that it executed with its existing shareholders in February 2019 and December 2018, in which Reabold subscribed for £750,000 and £300,000 respectively. Pursuant to the terms of the Advanced Subscription Agreements, new shares in Corallian were allotted to Reabold at a 30% discount to shares issued in connection with the Round 6 Fundraise, following which, Reabold has invested a total of £3,550,000 to date, for a 34.9% interest in Corallian.

A portion of the net proceeds from the Round 6 Fundraise have been utilised by Corallian to acquire Corfe Energy Limited’s (“Corfe”) interests in certain licences in which Corfe was a JV partner with Corallian. Such interests comprise four licences in the Wessex Basin, which includes the licence containing Colter South, and the Inner Moray Firth, including three new licences offered in these areas in the 31^st Licensing Round. Corallian’s management estimates that the PMean Prospective Resources attributable to Corfe’s interests are 10 mmboe in the Inner Moray Firth and 6 mmboe in the Wessex Basin. Following this transaction, Corallian’s interest in the Wessex Basin JV licences increased to 74% and in the Inner Moray Firth JV licences to 45%.  The balance of funds was used by Corallian for the Curlew-A rig site survey, as Reabold announced on 29 July 2019.

We were very pleased with the latest equity fundraise carried out by Corallian, representing a significant premium to the price at which Reabold made its investment. Our increased exposure to the Wessex Basin licences, which contain the Colter South Discovery, is a welcome addition that exemplifies the flexibility of the Reabold strategy.

Placements

In July 2019, the Company was pleased to complete a fund raising of 240,909,09 new ordinary shares at a price of 1.1 pence per share, raising £2.65 million (before expenses) in further support of the Company’s investing strategy and executive team. The issue price represents a 29% premium to both the price at which the Company last raised funds (being 0.85 pence) and the 90-day volume weighted average price (being 0.855 pence). 

Financial Review

The Group loss for the 6 months ended 30 June 2019 was £1,699,000 (2018: loss of £746,000), which includes share of losses of associates of £1,023,000, primarily reflecting an adjustment to the results of Corallian for a write down of the unsuccessful Wick well.

During the reporting period, the Group successfully increased production from its California assets, generating revenues of £390,000 (2018: Nil) and gross profit of £172,000 (2018: Nil). 

Total administration costs for the 6 months ended 30 June 2019 of £368,000 were less than the corresponding period in 2018 of £427,000, reflecting foreign exchange gains and reduction of legal fees.  

For the six months ended 30 June 2019, the Group net cash used in operating activities was £175,000 (2018: net used of £185,000). The cash outflow from investing activities increased from £2,848,000 for the 6 months ending 30 June 2018 to £4,178,000 for the 6 months ended 30 June 2019, reflecting the significant increase in investment activities during the reporting period, primarily the funding of activities in California and increased investments in Corallian and Danube. 

During the six months ended 30 June 2019, the Group did not raise funds from share placings, compared to the corresponding period in 2018, where the Group raised £7,277,000, net of costs.  Cash and cash equivalents as at 30 June 2019 was £2,765,000 (2018: £9,551,000). 

The Group total net assets and net current assets as at 30 June 2019 were £17,802,000 (2018: £12,752,000) and £2,797,000 (2018: £9,659,000) respectively. 

Outlook

We are highly encouraged by the success we have had so far in the implementation of our strategy to invest in low-risk, high impact, upstream oil and gas projects. With a portfolio that contains interests in the Danube, Corallian and Rathlin prospects, all of which had appraisal campaign drilling in 2019, and the further drilling programmes in California following the success in the US to date, together with a number of other projects currently under review, the Board is confident that its shareholders can look forward to an exciting remainder of 2019 and beyond.  The Board looks forward to reporting further in due course.

This report was approved by the Board and signed on its behalf:

Jeremy Edelman

Chairman

27 September 2019

Reabold Resources (LON: RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has today provided the conclusion of a third party reserves report into its assets at the West Brentwood field in Kern County, California. Reabold has a 50 per cent. interest in the West Brentwood field; Integrity Management Solutions is the contract operator.

Highlights:

· Close to 1 million barrels of oil equivalent (boe) of Proven reserves attributed to Reabold’s net interest at West Brentwood, with associated value of US$19.3 Million (NPV10)

· Significant multiple achieved on capital invested to date

· Returns should improve further with earn in now completed

As part of an evaluation of the current and future potential value associated with its California business, Reabold commissioned Petrotech Resources Company Inc., based in Bakersfield, California, to compile a reserves report to cover the West Brentwood field.

The Proved Developed Producing (“PDP”) and Proved Undeveloped (“PUD”) reserves reported for oil and associated gas, net to the Reabold interest, are as follows:

	M bbl	MMscf	M boe
PDP (2 wells)	550.84	612.58	652.94
PUD (1 well)	267.32	363.60	327.92
Total	818.16	976.18	980.86

Note: gas equivalence based on 6,000 scf/bbl

The report attributes an NPV10 value1, net to Reabold, of US$19.31 Million associated only with the PDPs at the VG-3 and VG-4 locations, and the PUDs at the upcoming VG-5 location, which is planned to be drilled this year. Additional prospectivity associated with other potential drilling locations at West Brentwood, along with “Probable” and “Possible” upsides, have not been included in the valuation calculation.

This corresponds to a total capitalised expenditure by Reabold at West Brentwood to 30 June 2019 of US$2.9 Million, associated with the drilling and completion of the VG-3 and VG-4 wells. Almost all expenditure to date at West Brentwood has been 100 per cent. funded by Reabold in order to earn its 50 per cent. equity interest. Going forward, all expenditure will be funded by Reabold on a 50 per cent. basis.

Marcos Mozetic, an exploration geologist, with over 42 years of international technical experience has reviewed the technical information in this announcement and approved it for release in his capacity as a Qualified Person under the AIM Rules. Marcos holds a BSc and Post-Graduate degree in Petroleum Geology from the University of Buenos Aires. Marcos is a member of the Society of Exploration Geophysicists.

Stephen Williams, Co-CEO of Reabold Resources, commented:

“We are delighted to be able to demonstrate independent validation with regard to the impressive economic returns we have been able to achieve in California. The 6x multiple on cash investment to date at West Brentwood has been delivered even whilst Reabold has been paying almost 100 per cent. of the costs, and economics can essentially double on a go forward basis. We have further running room at West Brentwood, and significant opportunity to create further value at Monroe Swell and Grizzly Island.”

1 The reference oil price used is NYMEX Brent strip as at 1 August 2019 and a natural gas price of USD 3 per thousand standard cubic feet

With higher than expected flow rates from the Burnett 2B well on the Monroe Swell licence in California, in which Reabold Resources (LON: RBD) has earned a 50% working interest, the company is currently increasing the capacity of the production facilities on site. With a concurrent programme to boost production from Burnett 2A likely to increase volumes further, the company is evaluating the potential to drill additional wells on Monroe Swell. Reabold is experiencing a similar situation on the West Brentwood licence (RBD: 50%) where strong output from wells VG-3 and VG-4 has accelerated plans to drill a third well; VG-5, in Q4 2019.

The contract operator of the Monroe Swell licence, Integrity Management Solutions (IMS), recently completed a programme of re-entering and cleaning out the perforated zones and adding additional intervals at the Burnett 2B well. These additional zones were previously logged as pay but had not been perforated.

Following this activity, the Burnett 2B well responded with flow rates of oil that were ahead of expectations. Given that the current production facilities do not have sufficient capacity to deal with these volumes, the well has been constrained to a rate of approximately 40 bopd and work is underway to increase the capacity of the production facilities. This programme is expected to be completed in the next two to three weeks.

IMS is conducting a similar programme at the Burnett 2A well where the operator is re-entering and cleaning the perforated zones with a view to increasing production levels. This work is ongoing and we anticipate further updates as it progresses.

With the strong flow rates from Burnett 2B in evidence, Reabold Resources and its joint venture partners, IMS and Sunset Exploration, are currently evaluating the potential to drill additional wells on the Monroe Swell licence area.

To date, Reabold and its partners have drilled two wells on the West Brentwood licence; VG-3 and VG-4. With both wells on production and performing well, the company and its partners have decided to drill a third well on West Brentwood which will be called VG-5. This is expected to take place over Q4 2019.

With regards to the company’s Grizzly Island licence which is estimated to contain gas resources of up to 90 BCF, Reabold has noted the strong cash generation from its interests in West Brentwood and Monroe Swell, which has the potential to generate funds for investment into other assets within the company’s portfolio. As such, Reabold has elected to prioritise drilling the VG-5 well ahead of the planned well at Grizzly Island that is now expected to be drilled in 2020.

With oil production expected to increase from both Monroe Swell and West Brentwood coupled with a recent rally in crude prices, Reabold has elected to prioritise the drilling of new wells on these key licences and defer a well on the company’s Grizzly Island gas asset until 2020. We believe that this strategy will deliver strong cash generation providing funds for further investment in the company’s US assets in addition to the group’s wider portfolio.

Attention is drawn to the disclaimers and risk warnings at the end of this document.

This is a non-independent marketing communication. The analyst who has prepared this report is aware that TPI has a relationship with the company covered in this report. Accordingly, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

TPI acts as joint broker to Reabold Resources Plc

Retail clients (as defined by the rules of the FCA) must not rely on this document.

Reabold Resources, (LON: RBD) the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has today provided an operational update on its assets in California.

Highlights:

· Programme to re-enter and clean out perforated zones at Burnett 2B well on Monroe Swell has been completed, yielding a higher-than-expected flow rate of oil, currently constrained at 40 bopd

· Work underway on Burnett 2B to increase the capacity of production facilities, allowing for increased production with rate to be determined

· Programme to re-enter and clean out perforated zones at Burnett 2A well on Monroe Swell is ongoing

· Reabold and its JV partners evaluating drilling further wells on Monroe Swell and West Brentwood

Monroe Swell

Further to the announcement by the Company on 29 July 2019, Reabold is pleased to announce that Integrity Management Solutions (“IMS”), the contract operator of the licence, has completed the programme of re-entering and cleaning out the perforated zones and adding additional intervals, which were logged as pay but had not previously been perforated, to the Burnett 2B well located on the Monroe Swell licence area, in which Reabold has earned a 50 per cent. working interest.

Following the programme, the well responded with a flow rate of oil that was ahead of expectations. The current production facilities have insufficient capacity to deal with that flow rate and accordingly the well has been constrained to a rate of approximately 40 barrels of oil per day. Accordingly, work is underway to increase the capacity of the production facilities, which is expected to be completed in the next two to three weeks.

At the Burnett 2A well, a similar programme to re-enter and clean the perforated zones, with a view to increasing production levels, is ongoing and further updates will be provided in due course.

Additionally, given the positive results from Burnett 2B, Reabold and its joint venture partners, Sunset Exploration and IMS (together, the “Partners”), are evaluating the possibility of drilling further wells on the Monroe Swell licence area.

West Brentwood

Given the favourable economic returns that have been generated to date from the West Brentwood licence, in which Reabold has a 50 per cent. working interest, the Company and its Partners, have elected to drill a third well on West Brentwood, VG-5, which is expected to take place during the course of Q4 2019.

Grizzly Island

Given the strong cash generation available from the oil wells at West Brentwood and Monroe Swell, which can both support growth in Reabold’s net production volumes in California and, in the future, potentially provide cash flow for investment into other assets within the Reabold portfolio, the Company has decided to prioritise the VG-5 well ahead of the planned well at Grizzly Island, which is now expected to be drilled in 2020.

Stephen Williams, Co-CEO of Reabold Resources, commented:

“Our Californian assets continue to exceed our expectations, with the higher-than-expected flow rates at Burnett 2B generating more valuable cash for Reabold. We continue to be excited by the significant running room on the licences, particularly given the high-margin production in California, and we look forward to future drilling across Monroe Swell, West Brentwood and Grizzly Island.”

Reabold Resources PLC (LON:RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has today announced that, following the highly encouraging results of the Iecea Mica-1 appraisal well, onshore Romania, as announced on 9 September 2019, it has entered into an agreement to increase its interest in Danube Petroleum Limited via a subscription for new ordinary shares in Danube.

Sachin Oza, Co-CEO of Reabold, commented:

“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.”    

Danube has a 100 per cent. working interest in the sole risk area within the Parta licence that includes IM-1, as well as 50 per cent. of the remainder of the Parta licence. ADX Energy Ltd (“ADX”) is the operator of the licence and has also participated in the Subscription. The proceeds of Subscription are intended to be utilised by Danube in the production testing of the IM-1 well.

Following completion of the Subscription, Reabold will hold a 41.6 per cent. equity interest in Danube, with ADX holding the remaining 58.4 per cent.

Pursuant to the Subscription, Reabold has subscribed for 810,811 Danube Shares at an issue price of £1.00 per share via two tranches, with the first tranche being for 237,838 Danube Shares (“First Tranche Shares”) and the second tranche being for of 572,973 Danube Shares (“Second Tranche Shares”). Reabold has funded its participation in the Subscription from existing cash resources.

Pursuant to the Subscription, ADX has subscribed for 540,541 Danube Shares at an issue price of £1.00 per share, comprising 158,559 First Tranche Shares and 381,982 Second Tranche Shares.

Both Reabold and ADX have paid for their First Tranche Shares and payment for the Second Tranche Shares is required on or before 30 September 2019.

For the year ended 31 December 2018, Danube recorded a loss for the period of £84,543. As at 31 December 2018, Danube reported net assets of £5.54 million.

As announced on 11 December 2018, Reabold has an option to subscribe for a further 1,627,604 Danube Shares at an issue price of £1.20 per share, and ADX may subscribe for a further 651,042 Danube Shares at an issue price of £1.20 per share, if Reabold and ADX elect 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. 

Reabold Resources (LON: RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has today noted the announcement made by ADX Energy Ltd earlier, regarding an update on the drilling of the Iecea Mica-1 (“IM-1”) appraisal well, located within the Parta license, onshore Romania. Drilling has been completed safely and hydrocarbons have been discovered in multiple zones.

Reabold holds a 37 per cent. equity interest in Danube Petroleum, which has 100% working interest in the sole risk area within the Parta licence that includes IM-1, as well as 50 per cent. of the remainder of the Parta licence. ADX is the operator of the well.

Highlights

· Successful discovery in both the primary target and additional zones, with volumes substantially exceeding pre-drill estimates

· Operator volumetrics increased across IM-1 intervals to 20 Bcf of Contingent Resources from 6.1 Bcf of Contingent and 12.7 Bcf Prospective Resources

· IM-1 well now being prepared for production testing

o The primary target, the PA IV interval, has shown high quality reservoir, giving confidence to good production rates

· Testing of the deeper basement target has been deferred, but prospectivity of the play has been upgraded and can be tested with a future well

The full ADX announcement can be viewed here: https://adx-energy.com/documents/iecea-mica-1-well—results-operations-update.pdf

Successful discoveries have been made over a 14.5 metre section of net pay at a number of Pannonian (“PA”) intervals; namely, the PA IV interval (the primary target of the well), the PA III and PA V formations. Overall, volumetrics across the intervals at IM-1 have been increased by ADX to 20 Bcf (billion cubic feet) of 2C Contingent Resources, which compares favourably to the predrill best estimate of 6.1 Bcf of Contingent and 12.7 Bcf Prospective Resources. (ERCE Independent Resource Estimates for Parta Appraisal Programme).

The primary target, the PA IV interval, had measured porosities in excess of 20% and calculated permeabilities in the order of 50 to 100 mD (millidarcies), suggesting reservoir quality is at the upper end of pre-drill expectations, giving confidence of strong gas production rates.

The PA III and PA V exploration intervals were shown to be hydrocarbon bearing with the PA V interval being assessed to be a gas condensate discovery. The PA V interval has previously been tested at a rate of 126 barrels of oil per day by the IM-30 well, 2.5 km north of IM-1 and approximately 70 meters deeper.

The discoveries across the three intervals will be confirmed by the testing programme.

Attempts to drill into the deeper fractured basement play intersected a highly over-pressured zone associated with a strong drilling break, indicative of formation porosity and permeability, coincident with an increase in gas shows. Severe mud losses were experienced, indicating open fractures in the formation. The presence of highly permeable fractured zones proximal to basement, together with the gas shows encountered, has upgraded the prospectivity of the play across the licence. As discussed, for technical, commercial and safety reasons, the drilling of the basement play has been deferred to a later date.

Marcos Mozetic, an exploration geologist, with over 42 years of international technical experience has reviewed the technical information in this announcement and approved it for release in his capacity as a Qualified Person under the AIM Rules. Marcos holds a BSc and Post-Graduate degree in Petroleum Geology from the University of Buenos Aires. Marcos is a member of the Society of Exploration Geophysicists.

Sachin Oza, Co-CEO of Reabold Resources, commented:

“We are delighted that the discovery at IM-1 has exceeded expectations and should lead to a highly commercial development in the near future. This result bodes well for the testing of IM-1 and for the drilling of IM-2.

“We see Romania as a significant source of opportunity, and the Parta licence provides Reabold with extensive running room for growth and further value creation above and beyond the near-term appraisal programme.”

Contingent Resources: 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.

Reabold Resources (LON: RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has today provided an update on operations at the West Newton A-2 appraisal well, located within the PEDL 183 licence in Humberside, onshore UK. Reabold holds a 24 per cent. economic interest in the licence via its 36 per cent. holding in Rathlin Energy (UK) Ltd, operator of the well.

Highlights

· Analysis and initial testing at the West Newton A-2 well have led the Operator and project partners to believe that the West Newton project represents a significant oil and gas discovery rather than the gas discovery as originally anticipated.

· Initial petrophysical analysis indicates that the overall hydrocarbon column of 65 metres comprises a gross oil column of approximately 45 metres underlying a gross gas column of approximately 20 metres, all within the Kirkham Abbey interval.

· Logs and core both suggest encouraging porosity within the oil zone, which additionally appears to be naturally fractured.

· The Extended Well Test (“EWT”) has been paused in order to optimise the evaluation of the potentially significant oil column.

· The Operator and partners currently intend to commission a revised CPR following completion of the EWT, to re-assess the volumes of hydrocarbons and economics of the West Newton project, which will incorporate the information gathered since drilling the West Newton A-2 well.

The West Newton A-2 well was drilled as an appraisal of the West Newton A-1 discovery well. Based on the results of the West Newton A-1 well and the three-component 3D seismic data volume identifying an aerial extent of approximately 4,500 acres for the Kirkham Abbey reservoir, a Best Estimate Contingent Resource of 189 Bcfe (billion cubic feet equivalent) of gas was identified in a Competent Persons Report compiled by Deloitte for Connaught Oil and Gas Limited* and dated 1 June 2017.

The West Newton A-2 well was spud on 26 April 2019 and on 9 June 2019 reached a total depth (“TD”) of 2,061 metres. A full suite of open hole logs was run and 28 metres of core was successfully cut and recovered from the Kirkham Abbey Formation.

Initial open hole information on West Newton A-2 indicated that, in many respects, the Kirkham Abbey interval was consistent with that encountered in the West Newton A-1 well. However, the West Newton A-2 well indicated the presence of both gas and oil in the reservoir as opposed to it being a primarily gas project as originally anticipated.

Evaluation of the West Newton A-2 open hole data has identified an estimated gross hydrocarbon column of approximately 65 metres in the Kirkham Abbey Formation. A cased hole pulsed-neutron tool was run across the Kirkham Abbey zone and initial petrophysical evaluation identifies a gross oil column of approximately 45 metres underlying a gross gas column of approximately 20 metres within that interval.

The West Newton A-2 well exhibits encouraging porosities on logs and in core, particularly in the identified oil zone where in excess of 30 metres with good matrix porosities approaching 15 per cent. have been measured. The core also exhibits natural fracturing which is confirmed by an imaging log run across the entire Kirkham Abbey interval.

Cased hole logging and completion programmes were initiated on 6 August 2019 followed by well test operations which commenced on 20 August 2019. However, with the indication of a potentially significant oil column, the EWT has been temporarily paused, in order to review and revise the well test design, which will now focus on the potentially highly significant oil column. The Operator is currently reviewing the forward plan including the potential to restart the flow test under a different test design, subject to all necessary approvals.

Additionally, the West Newton A-2 well data provides a good tie to the high quality three component 3D seismic data volume that covers the entire West Newton project. The new data allows for a revised interpretation of the seismic volume incorporating the well and the newly identified gas over oil gross hydrocarbon column.

Following the integration and evaluation of the core, petrophysical, seismic and test data, the Operator and partners intend to commission a revised CPR to re-assess volumetrics and revise NPV10 values based on the information acquired from the West Newton A-2 well.

Stephen Williams, Co-CEO of Reabold Resources, commented:

“The realisation that we appear to have a 45 metre oil column is a significant and exciting development in the evaluation of this cornerstone asset. We particularly look forward to further analysis and testing results, as well as a proposed updated CPR, as, alongside our partners, we establish the optimum forward programme to maximise value out of this field for Reabold shareholders.

In addition, the next well at West Newton will be planned to target the deeper Cadeby formation, which has the potential to add significant further resource upside. There are also other follow on exploration targets within this extensive licence area.”

*Connaught has a 35 per cent. interest in Rathlin, operator of the West Newton A-2 appraisal well. Connaught was previously the 100 per cent. equity holder in Rathlin, which was in turn the 100 per cent. holder of the PEDL183 licence.

Reabold Resources (LON: RBD), the AIM investing company which focusses on investments in pre-cash flow upstream oil and gas projects, has today noted the announcement made by ADX Energy Ltd yesterday regarding an update on the drilling of the Iecea Mica 1 appraisal well.

The IM-1 well is located on the Iecea Mare production licence, onshore Western Romania. ADX is the operator of the well.

Highlights:

· Well has reached total depth 2,335 metres measured depth (“MD”) and wireline logging has been completed;

· A number of potential Pannonian (“PA”) reservoirs have been intersected and logged with observed hydrocarbon shows including;

o A 2 metre sandstone at a depth of approximately 1,863 metres MD with (C1) gas shows at the PA III stratigraphic interval.

o A 5 metre sandstone at a depth of 2,033 metres MD with (C1) gas shows as expected at the PA IV stratigraphic level (the zone that was successfully tested in the historical well)

o A stratified sandstone and siltstone section from 2,140 to 2,163 metres MD (23 metres) including a number of potential reservoirs with heavier gas shows (C1, C2 & C3) in the PA V interval (a historical offset production well has produced oil from this interval)

o A preliminary petrophysical analysis is expected to be completed and subsequently reported over the coming days. However, the results of the PA IV sand and the PA V sand are encouraging based on drilling and raw wireline log data assessed to date.

· The next zone of interest is at approximately 2,400 metres MD.

· The IM-1 well was spudded on 6 August 2019 and total time to drill and evaluate the well is expected to be approximately 29 days.

The full announcement made by ADX, can be viewed here: https://adx-energy.com/documents/iecea-mica-1-well—drilling-update-no.-4-corrected.pdf

Reabold is exposed to the IM-1 well via its 37.5 per cent. equity interest in Danube Petroleum, which owns 50 per cent. of the Parta exploration licence and 100 per cent. of the defined 19.4km2 Sole Risk Area, which includes the Iecea Mare Production licence.

Stephen Williams, Reabold Resources Co-Chief Executive Officer, commented:

“These initial results are very encouraging and indicative of a gas and oil discovery at the IM-1 well. The Parta licence is a key asset for Reabold and we are delighted to be seeing potential success with the first well. We now look forward to petrophysical analysis of the hydrocarbon shows whilst the well continues to evaluate deeper targets.”

Reabold Resources (LON RBD), the AIM-listed investing company which focusses on investments in pre-cash flow upstream oil and gas projects, has today announced that it has increased its investment in Rathlin Energy (UK) Limited, the operator of the West Newton field, through participation in an advanced subscription agreement. Reabold currently holds a 24 per cent. economic interest in West Newton via its 36 per cent. holding in Rathlin and its ultimate economic interest will be confirmed once the next fundraising round is complete.

Following the successful drilling result at West Newton A-2, as announced by the Company on 17 June 2019, Rathlin has raised £1,793,000 by way of an advanced subscription agreement in which Reabold invested £1,000,000. The additional shares to be issued under the advanced subscription agreement will be priced at the higher of either a 20 per cent. discount to the price achieved in the next Rathlin funding round or at £0.8427 per share, being the price per share of Rathlin’s previous fundraise. If no funding round has occurred within 24 months then the additional shares will be issued at £0.8427 per share. Reabold’s investment has been satisfied from the Company’s existing cash resources.

For the year ended 31 December 2018, Rathlin reported a loss of £1,063,264. As at 31 December 2018, Rathlin reported net assets of £8,920,883.

Stephen Williams, Co-CEO of Reabold, commented:

“We are delighted with the rapid progress made so far at the West Newton field. With testing now underway, Reabold is pleased to provide further funds to progress this crucial project through the testing programme and beyond. The opportunity to increase our exposure to this potentially transformational asset, and on attractive financial terms, is something that could create substantial additional value for Reabold shareholders in the event of continuing success.”

Reabold Resources PLC (LON:RBD), the AIM investing company which focusses on investments in pre-cash flow upstream oil and gas projects, today provided an update on operations at the West Newton A-2 appraisal well, located within the PEDL 183 licence in Humberside, onshore UK. Reabold holds a 24 per cent. economic interest in the licence via its 36 per cent. holding in Rathlin Energy (UK) Ltd, operator of the well.

Highlights:

·      Rig mobilised for the perforation/completion of the West Newton A-2 well

·      Well test anticipated to run over 4-8 weeks

·      Permissions also in place for the construction of West Newton B site, as well as for the drilling and testing of two wells in that location

On 17 June 2019, Reabold announced the successful appraisal of a discovery at West Newton, with both gas and liquid hydrocarbon volumes encountered. The Company is pleased to announce that Rathlin has today mobilised a service rig and associated testing equipment to the West Newton A site for perforation/completion of a select interval within the Kirkham Abbey conventional reservoir. Once the well test operations have commenced, they are anticipated to run over the next 4-8 weeks. 

The information gathered during the well test operations will aid the evaluation of the Kirkham Abbey reservoir and help inform any further work programme in the area. Rathlin has been granted planning permission and EA permits for the drilling and testing of two wells at the West Newton A site. Permissions are also in place for the construction of the West Newton B site and the drilling and testing of two wells in that location.

Preliminary data from a Competent Person’s Report compiled by Deloitte for Connaught Oil and Gas Limited (“Connaught”) suggests that 2C Contingent Resources at West Newton are at least the pre-drill estimate of 189 Bcf (Billion Cubic Feet of Gas)*, the equivalent of 31.3 mmbo (million barrels of oil).

Sachin Oza, co-CEO of Reabold Resources, commented:

“We are excited by the progress being made at West Newton, which clearly has significant potential and could be transformative for Reabold. We are also delighted to see permits in place for follow-on wells, which we believe are integral to realising the full potential of West Newton. We look forward to updating shareholders on the results of the well test in due course, along with updates from across the rest of our portfolio.”    

* Connaught management estimate. Connaught has a 35 per cent. interest in Rathlin Energy (UK) Ltd (“Rathlin”), operator of the West Newton A-2 appraisal well. Connaught was previously the 100 per cent. equity holder in Rathlin, which was in turn the 100 per cent. holder of the PEDL183 licence.

Reabold Resources Plc (LON: RBD), the AIM investing company which focusses on investments in pre-cash flow upstream oil and gas projects, has today noted the announcement made by ADX Energy Ltd this morning.

Following the mobilisation, setting up and commissioning of the Tacrom Futura Rig 6 on 5 August 2019, the Iecea Mica 1 (“IM-1”) appraisal well was spudded at 10.20 a.m. on 6 August 2019 Eastern European Summer Time. The IM-1 well is located on the Iecea Mare production licence, onshore Western Romania. The first target reservoir intersection is expected in approximately 13 days and the total time to drill and evaluate the well is expected to be approximately 27 days following spud. ADX is the operator of the well.

Reabold Resources is exposed to the IM-1 well via its 37.5 per cent. equity interest in Danube Petroleum, which owns 50 per cent. of the Parta exploration licence and 100 per cent. of the defined 19.4km2 Sole Risk Area, which includes the Iecea Mare Production licence.