Reabold Resources PLC Exercise of Warrants in Corallian (0156H)
01 December 2020 - 6:00PM
UK Regulatory
TIDMRBD
RNS Number : 0156H
Reabold Resources PLC
01 December 2020
1 December 2020
Reabold Resources plc
("Reabold" or the "Company")
Exercise of Warrants in Corallian
Reabold, the AIM investing company which focuses on investments
in upstream oil and gas projects, is pleased to announce that it
has exercised 272,727 warrants ("Warrants") over shares in
Corallian Energy Limited ("Corallian"), at a subscription price of
GBP2.20 per share, equating to an investment of approximately
GBP600,000. Following the exercise of the Warrants, Reabold will
hold 2,780,049 Corallian shares, representing approximately 36.9
per cent. of Corallian's then issued share capital.
On 21 November 2019, Warrants were issued to all Corallian
shareholders on the register at that date, with exercise of such
Warrants being conditional on the successful offer of any
licence(s) to Corallian by the Oil & Gas Authority (the "OGA"),
as part of the 32(nd) UK oil and gas licencing round. The expiry
date of the Warrants was 30 November 2020.
As announced on 3 September 2020, the OGA offered to Corallian
100 per cent. interests in the Victory gas discovery ("Victory") in
block 207/1a, the Laxford gas discovery and Scourie prospects in
blocks 214/29c and 214/30c, and the Oulton oil discovery in block
3/11a.
Victory is a simple, low-risk gas development located near to
existing local infrastructure and has been fully appraised,
requiring no additional pre-development drilling. Corallian plans
to submit the Victory Field Development Plan ("FDP") to the OGA by
the end of 2021, with first gas production anticipated in Q4 2024.
From 2025, a 3-year gas production plateau is planned at 70 mmscf/d
(11,666 boepd), delivering over 25 BCF gas per year.
The Victory project value (NPV10) is estimated to be ca. GBP85
million based on current gas price forecast of 42.5 pence per therm
to ca. GBP146 based on the historical average gas price of
50p/therm. Therefore, the value (NPV10) of Victory, net to Reabold,
based on its 36.9 per cent. interest in Corallian, is GBP31m -
GBP54m.
Further information on Victory can be found in the following
presentation:
https://reabold.com/wp-content/uploads/2017/10/Reabold-Victory-Presentation-FINAL.pdf
Stephen Williams, Co-CEO of Reabold, commented:
"We are delighted to exercise these Warrants in Corallian,
increasing our equity interest at such an exciting time for the
company. The Victory discovery, which is thought to be amongst the
lowest risk of development projects offered in the 32(nd) Round,
brings further optionality and additional upcoming activity to the
Reabold portfolio."
For the year ended 31 October 2019, Corallian reported a loss of
GBP7,161,415 and, as at 31 October 2019, reported net assets of
GBP1,974,480.
ENDS
For further information, contact:
Reabold Resources plc c/o Camarco
Sachin Oza +44 (0) 20 3757
Stephen Williams 4980
Strand Hanson Limited - Nomad & Financial +44 (0) 20 7409
Adviser 3494
James Spinney
Rory Murphy
James Dance
Stifel Nicolaus Europe Limited - Joint Broker +44 (0) 20 7710
Callum Stewart 7600
Simon Mensley
Ashton Clanfield
Panmure Gordon - Joint Broker
Hugh Rich +44 (0) 207 886
Nick Lovering 2733
Camarco
James Crothers
Ollie Head +44 (0) 20 3757
Billy Clegg 4980
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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