ADX Energy Acquires Production Licence Within its Parta Permit Onshore Romania

Source Press Release
Company ADX Energy Ltd 
Tags Asset Deals, Deals, Upstream Activities
Date June 08, 2018
  • Low cost strategic asset within the Parta Exploration Permit
  • Immediate synergies for Parta Appraisal Program operations
  • License covered by 3D seismic and overlaps resource potential targeted by the Parta Appraisal Program
  • Enables the optimal location of one Parta Appraisal well
  • Potential utilisation of License area for rapid development of successful Parta Appraisal Program wells
  • Access to further development, appraisal and exploration opportunities

ADX Energy has announced that its Romanian subsidiary ADX Energy Panonia has executed a Sales and Purchase Agreement ('SPA') to purchase 100% equity interest in the Iecea Mare Production Licence from the Romanian production company Amromco Energy. Under the terms of the SPA, ADX Panonia will pay Euro 30,000 and a 5% royalty for production from wells located within Licence.

ADX holds its interest (1) in ADX Panonia via a recently formed special purpose vehicle Danube Petroleum. The Licence area is 4.7 km2 expiring in November 2034. The Licence does not contain any active oil and gas infrastructure however it overlaps mapped contingent and prospective resources which will be targeted by the upcoming Parta Appraisal Program schedule for late 2018 as well as containing additional development, appraisal and exploration opportunities identified on 3D seismic.

The acquisition enables one of the Parta Appraisal wells to be drilled from an optimal location within the License area. Upon Appraisal Program success it is possible to locate production facilities within the License area enabling the initiation of potential production operations without the need to secure a production license. The location of the License proximal to the active Calacea gas plant ensures the potential for cost effective and rapid tie in of gas production.

ADX intends to provide an operational update in relation to the planned Parta Appraisal Program in the coming weeks.

Ian Tchacos, Executive Chairman of ADX commented“The Iecea Mare acquisition is an important operational and strategic acquisition which has been secured at low cost. The License provides Danube with the ability to optimize the planned Parta Appraisal Program and enables the rapid development of future production wells thereby providing ADX and other Danube shareholders with potential to access rapid cash flow. The License also offers further appraisal and exploration opportunities defined on modern 3D seismic.”

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