Exercise of Danube Petroleum Option

RNS Number : 1421J

Reabold Resources PLC

03 December 2018

 

3 December 2018

Reabold Resources Plc

("Reabold" or "the Company")

Exercise of Danube Petroleum Option

Reabold, the oil and gas investing company, is pleased to announce that it has exercised options to subscribe for 375,940 fully paid ordinary shares in the capital of Danube Petroleum Limited ("Danube") at a price of £1 per share, pursuant to the subscription agreement dated 1 December 2017 (the "Subscription Agreement"). Accordingly, Reabold has paid £375,940 to Danube, satisfied from the Company's existing cash balances, thereby increasing Reabold's interest in Danube to 33 per cent., from 29 per cent, with ASX-listed, ADX Energy Ltd ("ADX"), holding the remaining 67 per cent. This additional funding will be utilised by Danube for the drilling of the Parta Appraisal Wells in the first quarter of 2019.

As previously announced on 24 September 2018, pursuant to the Subscription Agreement, Reabold completed Tranche 2 funding of £1,127,819 (of an aggregate investment of £1,503,759) to provide funding for the first appraisal well.

Under the terms of the Subscription Agreement, ADX is committed to either invest directly in Danube or source investment from a third party for £375,940 on the same terms as Reabold's investments. The timing of this investment by ADX is being discussed by the parties in conjunction with potential other funding options by both parties for the drilling of a further Parta Appraisal well.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

ENDS

For further information please contact:

Reabold Resources plc Stephen Williams Sachin Oza	c/o Camarco [phone]
Strand Hanson Limited (Nominated and Financial Advisor) Rory Murphy / James Spinney / James Dance	[phone]
Camarco James Crothers Ollie Head Billy Clegg	[phone]

Whitman Howard Limited - Joint Broker Nick Lovering Grant Barker	[phone]
Turner Pope Investments (TPI) Ltd - Joint Broker Andy Thacker	[phone]

Notes to Editors

  
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.

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.

 

END

 

 

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