Update on Romania Well Flow Test Operations

2 July 2020 

Reabold Resources plc

("Reabold" or the "Company")

Update on Romania Well Flow Test Operations

Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, is pleased to provide an update on well flow test operations at the Iecea Mica-1 ("IMIC-1") well in Romania as part of the 2020 work programme (the "Work Programme").

The Work Programme is being carried out by Danube Petroleum Limited ("Danube"), which has a 100 per cent. interest in the Parta Sole Risk Area and will, on completion of the farmout to Tamaska Oil & Gas (see Reabold's announcement of 8 April 2019) have a 50 per cent. interest in the Parta Exploration Licence.

Reabold holds a 50.8 per cent. equity interest in Danube. ADX Energy Ltd ("ADX") is the operator of IMIC-1.

Highlights:

·    Well production equipment has been run into the IMIC-1 well which has been perforated to initiate flow from the Lower Pannonian Pa IV gas reservoir

o  The PaV and Pa III potential gas reservoirs were not perforated during the current operations

·   Mud filtrate build-up around the well bore has potentially occurred; following further diagnostic work, acidization of the well may be implemented to enhance flow

o  Reservoir acidization may be required to break down mud filter cake which builds up around the well bore and is relatively common practice in the region

o  Cuttings from IMIC-1 drilling analysis together with modern petrophysical analysis of the newly acquired IMIC-1 logs indicated good Pa IV gas reservoir permeability

·      The programme will be ongoing over the coming weeks including down hole pressure measurement, fluid sampling and future stimulation or further testing programmes

·      Further down hole pressure measurement and sampling of reservoir fluids work will be undertaken utilising low-cost wire line equipment following rig demobilisation

As announced on 9 September 2019, the IMIC-1 well encountered gas across three zones with a 20 BCF 2C contingent resources estimate. The well was suspended for future completion as a producer following testing. Testing had been deferred until down hole well production equipment was manufactured so that the well could be optimally completed utilising underbalanced perforation with a view to maximising well productivity.

The production equipment required to flow test the well has been run into the well and the well has been perforated to initiate flow from the Pa IV gas reservoir. While some inflow from the well is evident from wellhead pressure manifold data, gas flow from the well to surface has not yet been achieved following perforation and nitrogen treatment to minimise the pressure against the Pa IV gas reservoir. The well has been checked utilising electric line logging equipment which confirmed the perforation guns have indeed been fired across the PA IV reservoir.

The results to date suggest the presence of mud filtrate build up around the well bore given that the IMIC-1 well encountered good reservoir porosity (20% within the net pay gas zone) and gas saturations in the Pa IV sandstone reservoir based on electric wireline logs and gas shows (gas inflow to the drilling mud) while drilling late last year. In addition, well test results from the nearby historic well drilled in the mid-1980s flowed at up to 1 MMSCFPD and subsequent cuttings from IMIC-1 drilling analysis together with modern petrophysical analysis of the newly acquired IMIC-1 logs indicated good Pa IV gas reservoir permeability.

The workover rig used to run the well production equipment prior to testing is being demobilised as it is no longer required for ongoing flow assessment work. Further down hole pressure measurement and sampling of reservoir fluids work will be undertaken utilising low-cost wire line equipment following rig demobilisation.

Mud filtrate build-up around the well bore has potentially occurred resulting in reservoir fluids being blocked due to mud ingress into the reservoir and the build-up of non-permeable filtrate from drilling mud. This damage can be overcome with acidization, which is a routine practice within these reservoirs in the Pannonian basin where carbonate cement between the matrix porosity containing movable hydrocarbons is common. Modern rock typing work has established the presence of carbonate cement (Siderite) within the Pa IV reservoir. A nearby oil well (2.5 km to the north) required acidization prior to initial commercial flow. ADX will assess the potential for stimulation and clean up using acidization to initiate commercial well flows following the ongoing down hole pressure and sampling work mentioned above.

Further flow testing results will be provided to shareholders over the coming weeks including the analysis of down hole pressure measurement and fluid sampling as well as the results of any future clean up stimulation or testing programs.

ENDS

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Notes to Editors

Reabold Resources plc is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.

As an investor in upstream oil & gas projects, Reabold aims to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.

Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.

Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy.