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EurOil INVESTMENT EurOil

Reabold drops bid for

Deltic Energy

UK UK oil and gas investor Reabold Resources the North Sea. Nor was Delta’s cash balance of
has withdrawn its bid to acquire Deltic Energy, GBP13.2m, as of the end of March, considered.
Deltic’s management after the London-listed junior roundly rejected Through investments in other operators,
and its top shareholder its GBP12.3mn ($15.7mn) all-shares offer last Reabold also has stakes in a gas project in west-
said the deal month. ern Romania, as well as other onshore licences in
undervalued the Delta, formerly known as Cluff Natural the UK and in California.
company. Resources, had complained that the bid under- The company said separately on August 7 that
valued its business. Furthermore, it raised a planned flow test at the Iecea Mica-1 (IMIC-1)
“serious concerns” about the upsides of Rea- well in Romania was due to commence within
bold’s own projects, including the West Newton four weeks. Once underway it will run for nine
onshore find in northern England. days.
Reabold urged Deltic to reconsider the bid, Reabold has a 50.8% interest in Danube
as well as assess the latest data sets from West Petroleum, the 100% owner of the Parta Sole
Newton. It also engaged Deltic’s shareholders, Risk Area where the IMIC-1 well is sited.
although the latter’s top investor IPGL Holding Its decision to test-flow the well was based
also came out against the deal. on recently recovered downhole pressure
“Reabold announces that it does not intend measurements.
to make an offer for Deltic,” Reabold said in a “We are pleased to see the testing programme
statement on August 10. But it added that UK at IMIC-1 in Romania steadily approaching and
merger rules meant it could still legally make a we look forward to receiving the results of the
bid within six months. flow test in due course,” Reabold co-CEO Ste-
Reabold’s offer represented a GBP1.2mn phen Williams commented. “The testing pro-
premium to Deltic’s market capitalisation at the gramme will confirm the suitability of the gas
time. But Deltic said it failed to take into account composition for commercial sales and we con-
its “significant non-cash assets”, including shares tinue to be encouraged by the potential resource
in two wells it plans to drill with Royal Dutch upside across the licence, which will be further
Shell at the Pensacola and Selene prospects in assessed later this year.” ™

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