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Reabold Resources PLC on Friday stated that work on the Parta licence in Romania, according to the operator’s parent company, has been stymied by ‘regulatory constraints’ and other roadblocks. The investment firm, which is focused on developing strategic gas projects for European energy security, said the original announcement came from ADX Energy Ltd. Reabold has an indirect interest in Parta through its 50.8% stake in Danube Petroleum Ltd, with ADX holding the remaining 49.2% via Panonia. ADX, Reabold said, reported that its wholly owned subsidiary and Parta operator ADX Energy Panonia SRL ‘has been unable to perform the work plan in Parta due to regulatory constraints, delays and operational access restrictions’. ADX, in its own release, said it ‘chose not to proceed with a phase 2 exploration program because this work was contingent on phase 1 exploration results’ and that it has been unable to conduct phase 1 operations since 2019. The allocated exploration term for phase 1 lapsed in 2022. ‘Since it was not possible to complete phase 1 exploration activities Panonia could not make an assessment of the exploration potential of the permit,’ ADX explained. The relevant regulatory authority, Reabold said, has issued Panonia with invoices worth €4.2 million ‘relating to the unperformed exploration commitments’. ADX added that it has ‘repeatedly requested an extension’ but that the ‘unforeseen delays and operational restrictions have prevented Panonia from undertaking a satisfactory work program despite investing in excess of EUR 10 million in exploration related expenditure, thereby denying Panonia the opportunity to drill wells in the most prospective areas identified within the licence area.’ The limitations Panonia experienced, ADX said, included a three-year delay ‘resulting in the rapid urban expansion of the city of Timisoara as well as coordinated resistance from landowners and residential home developers’, which prevented access to the ‘most prospective areas’. ‘Where ADX did secure access, it was only after incurring significant legal costs (in excess of €500,000) to address hundreds of court cases with the local landowners and agricultural associations,’ it added. ADX intends to formally dispute the invoices on Panonia’s behalf, Reabold said, on the basis that the latter has incurred significant costs to address the work programme’s unforeseen challenges, and was prevented from entirely fulfilling the programme because of the access restrictions and regulatory delays. These have ‘denied Panonia the ability to benefit from the potential upside from making a discovery’, it added. ADX said it reserves its rights to bring counterclaims for over €10 million in financial losses, and ‘consequential losses due to its inability to exercise its rights under the concession agreement’. Shares in Reabold were 1.6% higher at 0.052 pence in London on Friday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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