Increased investment in Corallian
22 February 2021
Reabold Resources plc
("Reabold" or the "Company")
Increased investment in Corallian
Reabold, the investor in upstream oil and gas projects, is pleased to announce that it has entered into a conditional convertible loan instrument (the "Instrument") with Corallian Energy Limited ("Corallian") pursuant to which Reabold will advance £1 million to Corallian (the "Convertible Loan").
Pursuant to the existing shareholders agreement, to which Reabold is a party, the Convertible Loan is conditional on Corallian receiving the consent of 75 per cent. or more of its shareholders. Reabold has an existing 36.9 per cent. shareholding in Corallian, which, for the avoidance of doubt, can count towards the 75 per cent. threshold.
Corallian intends to utilise the proceeds of the Convertible Loan to support workstreams related to the submission of a draft Field Development Plan for the Victory gas field ("Victory"), which Corallian is aiming to do before the end of 2021, and for general working capital purposes.
The Convertible Loan, including interest at a rate of 15 per cent. per annum (accruing daily), will convert into new ordinary shares in Corallian ("Corallian Shares") within 21 months from the date of Instrument. If, during this period, Corallian is acquired, undertakes a material disposal of assets, an initial public offering or a reverse takeover, where the relevant valuation (each, a "corporate action") is greater than £3.20 per share, the Convertible Loan will convert at £3.20 per share. If the relevant valuation is below £3.20 per share, then the Convertible Loan will convert at a price equal to the relevant valuation. If no such corporate action has taken place within 21 months, the Convertible Loan will automatically convert at a price of £1.50 per share.
A presentation detailing the Victory project, which is 100 per cent. owned by Corallian, can be viewed here: https://reabold.com/wp-content/uploads/2017/10/Reabold-Victory-Presentation-FINAL.pdf
Stephen Williams, Co-CEO of Reabold, commented:
"We are delighted to be able to provide further investment in Corallian through an attractive structure in order to fund near-term activity, in line with our stated strategy. The Victory environmental study will take place this summer and we are eagerly awaiting the submission of the draft Field Development Plan to the OGA at the end of this year.
"Victory is a simple, low-risk project, which has been fully appraised and requires no further pre-development drilling, accelerating the potential return on investment for Reabold."
For the year ended 31 October 2019, Corallian reported a loss of £7,161,415 and, as at 31 October 2019, reported net assets of £1,974,480.
For further information, contact:
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Reabold Resources plc Sachin Oza Stephen Williams
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c/o Camarco +44 (0) 20 3757 4980
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Strand Hanson Limited - Nomad & Financial Adviser James Spinney Rory Murphy James Dance
Stifel Nicolaus Europe Limited - Joint Broker Callum Stewart Simon Mensley Ashton Clanfield
Panmure Gordon - Joint Broker Hugh Rich Nick Lovering
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+44 (0) 20 7409 3494
+44 (0) 20 7710 7600
+44 (0) 207 886 2733 |
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Camarco James Crothers Ollie Head Billy Clegg |
+44 (0) 20 3757 4980
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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.
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