TIDMRBD
RNS Number : 4054G
Reabold Resources PLC
01 March 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR"). IN
ADDITION, MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN
RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE
RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION
AS PERMITTED BY MAR. THAT INSIDE INFORMATION IS SET OUT IN THIS
ANNOUNCEMENT AND HAS BEEN DISCLOSED AS SOON AS POSSIBLE IN
ACCORDANCE WITH PARAGRAPH 7 OF ARTICLE 17 OF MAR. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL
THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION IN
RELATION TO THE COMPANY AND ITS SECURITIES
1 March 2018
Reabold Resources Plc
"Reabold" or "the Company"
Increased 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") for a 35.4% interest 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 GBP1.5 million in two tranches, and also
included the right to appoint a non-executive 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.
On 12 February 2018, Reabold announced that Corallian was
intending 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 is fully funded for all of this
activity.
Reabold is pleased to announce that it is supporting and
participating in the fundraise and has signed two subscription
agreements with Corallian Energy being made from existing cash
resources. The first agreement is an unconditional subscription for
GBP500,000 of new Corallian shares. The second agreement gives
Reabold the option to subscribe for an additional GBP500,000 of new
Corallian shares at any point up to 6 April 2018. Further details
are set out in Schedule A. Taking the full Corallian fundraising
into account, the first agreement will give Reabold 28.5% of
Corallian's issued share capital and the second agreement
32.9%.
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 23 February 2018 by Upland
Resources PLC, that environmental survey work has been completed on
the wick prospect, and that the prospect could contain in place
resources of 250M bbls of oil in a well understood petroleum
system. According to Corallian management estimates, the Colter
project targets an NPV (net to Corallian at a 50% equity interest)
of GBP128M based on 15M barrels of oil and a $55/bbl oil price.
Corallian management estimates a 58% chance of success. The Wick
project targets an NPV (net to Corallian at a 40% equity interest)
of GBP84M based on 9.4M barrels of oil and a $55/bbl oil price.
Corallian management estimates a 30% chance of success.
Stephen Williams, Co-CEO of Reabold Resources, commented:
"We are delighted that Corallian has successfully funded the
drilling of the low-risk, high-impact Colter and Wick prospects at
meaningfully higher equity interests than initially planned, and
that the fundraise has taken place at an increased valuation
relative to our initial investment in November last year."
Sachin Oza, Co-CEO of Reabold Resources, commented:
"We continue to believe that this is the ideal time to deploy
capital in line with our strategy, and look forward to an exciting
year with multiple transformational drilling events."
Glossary
API - American Petroleum Institute
NPV - net present value at discount rate
Prospective Resource- those quantities of petroleum which are
estimated, on a given date, to be potentially recoverable from
undiscovered accumulations.
Further Information:
The unaudited accounts of Corallian for the period ended 31
October 2016 show no turnover, an operating loss before taxation of
GBP125,343 and as at that date, total assets less current
liabilities of GBP624,657.
ENDS
For further information please contact:
Reabold Resources plc c/o Camarco
Stephen Williams +44 (0) 20 3757 4980
Sachin Oza
Beaumont Cornish Limited
Roland Cornish
James Biddle
Felicity Geidt +44 (0) 20 7628 3396
Camarco
Billy Clegg
James Crothers
Ollie Head +44 (0) 20 3757 4980
Whitman Howard Limited
- Joint Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Turner Pope Investments
(TPI) Ltd - Joint Broker
Andy Thacker +44 (0) 20 3621 4120
SCHEDULE A
Reabold has entered into two share subscription agreements with
Corallian to subscribe for up to 666,666 ordinary shares in the
issued share capital of Corallian.
Unconditional Share Subscription Agreement
Reabold has entered into an unconditional share subscription
agreement to subscribe for 333,333 ordinary shares in the issued
share capital of Corallian at GBP1.50/sh for an aggregate
subscription amount of GBP500,000.
Optional Share Subscription Agreement
Reabold has entered into an optional share subscription
agreement to subscribe for 333,333 ordinary shares in the issued
share capital of Corallian at GBP1.50/sh for an aggregate
subscription amount of GBP500,000. Reabold can exercise this option
through the transfer of funds to Corallian at any time up to and
including 6 April 2018.
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
The company news service from the London Stock Exchange
END
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