- Reabold Resources announced the extension of the Parta Exploration License
- The company holds the majority of Parta through its equity ownership of the subsidiary Danube Petroleum.
- An 18-month extension has been awarded to Parta until 3 December 2022
Reabold Resources Plc (LON: RBD), the London-headquartered investment corporation with interests in oil and gas projects, on Monday, 21 June, announced the extension of the Parta Exploration License granted by the Romanian regulatory body, the National Agency for Mineral Resources (NAMR). Further details were provided by ADX Energy, a Western Australia-based oil and gas explorer, which jointly holds an interest in Danube Petroleum, the subsidiary that owns the Parta Exploration License.
NAMR, has granted an 18-month extension to the Parta Exploration License for the present exploration phase, until 3 December 2022.
Parta Exploration is governed by Danube Petroleum Ltd, a jointly owned subsidiary of Reabold Resources and ADX Energy. Alongside the 100% interest in Parta, Danube Petroleum also commands a 100% interest in the Parta Sole Risk Area and 100% interest in the lecea Mare Production License in Romania.
Reabold Resources holds a nearly 51% stake in Danube Petroleum, while ADX Energy owns the remaining interest.
Let’s look at the details of the licence extension and the guidelines around NAMR exploration.
Parta License Extension: Key things to note
- Following the extension of the Parta Exploration License, ADX Energy will be in a position to secure an alternative source of funding, on behalf of Danube Petroleum, to acquire a 100 square kilometre seismic program. The seismic acquisition was delayed earlier due to a default by the previous partner.
- In September 2019, the Western Australia-based Tamaska Oil & Gas Ltd (ASX: TMK) defaulted on an agreement to fund the 3D seismic program.
- Phase 1, which is the exploration phase, for Parta Exploration License onshore Romania has been initially granted without additional work program obligations.
- The Parta Exploration Licence surrounds the lecea Mare Production License, in Romania, including the suspended lecea Mica-1 gas well drilled in late 2019.
- The upcoming 3D seismic work program has been designed in order to focus on appraisal opportunities within the lecea Mare Production License area.
- A technology transfer fee of EUR 14,520 has been levied subsequent to the licence extension, according to the concession agreement for 18 months agreed upon by the Romanian National Agency for Mineral Resources.
(Image Source: Company Release)
NAMR exploration licence guidelines
- As per the prescribed guidelines issued by NAMR, the exploration licences to carry out specific studies, quantity and quality assessments and gauging the economic conditions for the purpose of development are issued for a maximum period of five years.
- The authority can grant an extension for a maximum period of three years after the completion of the initial tenure.
- On the other hand, there is another exploration licence that entails several tasks that are required for instituting mines, opening pits, transportation, temporary storage of mining products, construction and assembly of the plant and machinery required, installation of equipment and other specific apparatus, tailings and residual products, processing and delivery of mining products and other necessary duties related to the extraction.
- This type of licence is awarded for a maximum period of 20 years with a possibility of an extension for a maximum of five years.
- Other than these tasks, this licence also includes research work for amplifying the knowhow about particular mineral resources or reserves.
Increased Reabold stake
In December 2019, Reabold Resources increased its holding in Danube Petroleum by exercising options which gave Reabold the right to subscribe for more shares in Danube. The London Stock Exchange-listed upstream oil and gas investment major invested a sum of GBP 1,713,125, subscribing to more than 1.42 million shares of Danube.
The additional investment increased Reabold Resources’ collective stake in the company to 50.8%. The operator of Danube, ADX Energy Ltd, decided to only partially exercise the option for acquiring further interest in the company. ADX Energy subscribed to over 241,000 shares of Danube, taking its effective stake to 49.2%.