Reabold investee Danube facing dispute with Romanian authorities

(Sharecast News) - Reabold Resources said on Friday that its investee company Danube Petroleum, jointly owned with ADX Energy, was facing a dispute with Romanian authorities over the expiry of the Parta exploration licence and invoices totalling €4.2m for unfulfilled commitments. The AIM-taded gas investor, which holds a 50.8% stake in Danube, said ADX Energy, through its subsidiary ADX Energy Panonia, operates the licence and holds the remaining 49.2% interest.

It explained that ADX had been unable to complete the work programme under Parta's first exploration phase due to regulatory constraints, delays and access restrictions, and as a result did not proceed into phase two, which would have required additional commitments.

Despite multiple requests for an extension, the Romanian regulatory authority had now informed ADX that the phase one exploration period had expired, and subsequently issued invoices for the alleged unperformed obligations.

ADX was planning to formally dispute the charges, arguing that Panonia incurred substantial costs to address unforeseen challenges, and that regulatory and access issues prevented completion of the work.

At 1103 BST, shares in Reabold Resources were down 1.96% at 0.05p.

Reporting by Josh White for Sharecast.com.