Intention to increase Corallian Energy investment
12 February 2018
Reabold Resources Plc
"Reabold" or "the Company"
Intention to increase investment in Corallian Energy Limited
Reabold Resources, the investor in pre-cash flow upstream oil and gas projects, is pleased to provide an update on its investment in Corallian Energy Limited ("Corallian").
On 1 November 2017, Reabold announced the signing of two share subscription agreements ("the investment") in Corallian, whose portfolio of UK oil and gas licenses includes the Colter prospect, offshore South of England. The investment, the first in line with Reabold's stated strategy, resulted in the prospect becoming fully-funded at a 40% planned Corallian working interest, and comprised £1.5 million in two tranches to acquire a 35.4 percent interest in Corallian, and also included the right to appoint a director to the board.
Since Reabold's investment, we are delighted that significant progress has been achieved within the Corallian portfolio, including the farm out of Colter to United Oil & Gas, and the farm out of its Wick prospect to Upland Resources and Corfe Energy for a fully carried well at 25% working interest.
Corallian has informed the Company of its intention to raise additional capital ("the fundraise") in order to increase its exposure to the Colter prospect from 40% to 50%, to increase its exposure to the Wick prospect from 25% to 40%, and to further progress additional assets including the Oulton prospect. Following the fundraise Corallian will be fully funded for all of this activity.
It is Reabold's intention to participate in the fundraise in order to increase its exposure to Corallian, and thus to Colter, Wick and the additional Corallian opportunities.
Reabold is fully funded from its existing cash balances to participate in this raise as planned, and will continue to have cash on its balance sheet to pursue additional exciting opportunities.
Reabold is pleased to announce that the drilling of Colter remains on track for the first half of 2018. The Company also notes the release on 2 February 2018 by Upland Resources PLC, Operator of the Wick prospect offshore North-East Scotland in which it has a 40% interest, that environmental survey work has been completed. The low-cost, potentially high-impact well is due to spud in Q3 2018 and Reabold looks forward to updating shareholders of subsequent developments on these high-impact wells.
Stephen Williams, Co-CEO of Reabold Resources, commented:
"We are delighted by Corallian's intention to increase its exposure to the low-risk, high-impact Colter and Wick prospects. We are excited by this opportunity to take part in the fundraise and deliver our stated strategy of delivering shareholder value through capital deployment."
Sachin Oza, Co-CEO of Reabold Resources, commented:
"We continue to assess a number of high quality opportunities, given the current opportune time to deploy capital, and look forward to an exciting year for us and our shareholders, during which the Company envisages at least four or five drilling opportunities."
ENDS
For further information please contact:
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Reabold Resources plc Stephen Williams Sachin Oza
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c/o Camarco +44 (0) 20 3757 4980 |
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Beaumont Cornish Limited Roland Cornish James Biddle Felicity Geidt
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+44 (0) 20 7628 3396 |
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Camarco Billy Clegg James Crothers Ollie Head
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+44 (0) 20 3757 4980 |
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Whitman Howard Limited - Joint Broker Nick Lovering Grant Barker
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+44 (0) 20 7659 1234 |
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Turner Pope Investments (TPI) Ltd - Joint Broker Andy Thacker |
+44 (0) 20 3621 4120 |
Notes to Editors
Reabold Resources is an investor in upstream oil & gas projects with an aim 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. Management believes the current distress in the oil & gas industry presents an opportune time to deploy capital in undervalued assets with huge potential.
This information is provided by RNS
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