ADX Energy Ltd announces that Reabold Resources Plc and ADX have agreed to a number of funding options for Danube Petroleum Limited (“Danube”) in order to provide funding certainty for future appraisal drilling operations.

To date Reabold has provided a total of £1,879,699 of funding pursuant to the subscription agreement dated 1 December 2017. Reabold now holds a 33% shareholding in Danube with the remaining 67% held by ADX.

The above mentioned funds raised for Danube are being deployed for the drilling of the first of two planned appraisal wells scheduled to spud during the first quarter of 2019. Ongoing operational and planning work by ADX on behalf of Danube has resulted in the commencement of manufacturing of key long lead items, including casing, tubing and wellheads which are due for completion in mid February 2019. In addition, efficient progress is being made with permitting for the drilling of the two wells both at a ministerial and local government level. Progress to date provides a high level of confidence that all relevant permits and authorisations will be granted during Q1 2019. The timing of completion of permitting and the availability of long lead items is expected to meet scheduled timing of a firm drilling rig slot in Q1 2019 as previously announced under a drilling contract that was signed in October 2018 for one firm well and one option well.

The agreed funding options provide a framework to fund the drilling, testing and completion for production of the two planned Parta Appraisal wells. Assuming the above funding options are exercised up to £5,365,954 (approximately US$7 million) of funding will be provided to Danube by the parties. If Second Parta Well Funding is subscribed at a price of £1.20 per share Reabold will hold a 45% shareholding in Danube with the remaining 55% will be held by ADX.