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.
