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RNS Number : 5935P
Reabold Resources PLC
20 October 2021
20 October 2021
Reabold Resources plc
("Reabold" or the "Company")
Victory CPR and Corallian Strategic Review
Reabold, the AIM investing company which focuses on investments
in upstream oil and gas projects, which owns 49.99% of Corallian
Energy Limited ("Corallian"), notes that Corallian has decided to
conduct a formal review of the various strategic options available
to maximise value for all its shareholders.
Corallian has engaged an independent financial adviser, H&P
Advisory Limited ("Hannam & Partners"), to conduct the
strategic review. As part of the review, Hannam & Partners will
approach third parties, who could potentially be interested in
making an offer for up to 100% of the fully diluted share capital
in Corallian.
Corallian holds a 100% interest in the Victory gas discovery in
block 207/1a, located approximately 80km NW of the Shetland Isles,
and 17km from the closest pipeline infrastructure tie in location
(Greater Laggan Area). The Victory project is a relatively simple,
sub-sea tie-back gas development (in 158m water-depth), which has
been fully appraised and requires no additional pre-development
drilling. A Competent Persons Report (CPR) has recently been
completed by RPS Energy Limited (RPS), following the finalisation
of both static and dynamic modelling, together with well / network
optimisation studies for the development. RPS estimates a total
Victory field 2C or best / mid case technically recoverable
resource of 179bcf dry gas (1) . This estimate represents a 14%
increase over the previous interim CPR completed by SLR Consulting
in December 2020 of 157bcf of technically recoverable gas.
Corallian's updated 2C economic valuation (NPV10) of Victory, based
on an historical average gas price valuation of 50p/therm, has
increased from GBP146 million to GBP193 million. Corallian remains
on track to submit its draft Victory Field Development Plan to the
OGA before the end of 2021, together with the Environmental
Statement for the project which will be lodged concurrently with
BEIS (OPRED).
The strategic review is being conducted by Corallian's Board.
Parties with a possible interest in making a proposal should
contact Hannam & Partners on the contact details set out
below.
The strategic review is at an early stage and there is no
guarantee that it will result in any offer being made (in whole or
in part) for Corallian. Reabold remains supportive of Corallian,
its Board, and the timing of this strategic review. Reabold
believes Corallian's flagship Victory gas development presents a
compelling investment opportunity to any prospective investor.
Stephen Williams, co-CEO of Reabold, commented:
"We are extremely pleased with the progress that has been made
on the Victory project over the last year, and the development
opportunity continues to look highly attractive, particularly
against the commodity backdrop we are experiencing at present.
"Reabold is in full agreement with the Corallian board that the
time is right to assess options going forwards via this strategic
review, and that our significant exposure to the Victory project
will at the appropriate time deliver considerable value to Reabold
and our shareholders."
(1) the 2C or best / mid case technically recoverable contingent
resources estimate is a Corallian derived aggregate of "contingent
resources - development pending" (145bcf) and "contingent resources
- development unclarified" (34bcf)" from the RPS CPR (dated October
2021)
Pursuant to the requirements of the AIM Rules - Note for Mining
and Oil and Gas Companies, the technical information contained in
this announcement has been reviewed by Dr Jeremy Jarvis as a
Qualified Person. Jeremy has more than 35 years' experience as a
petroleum geologist, holds a BSc in Geology from the University of
Dundee and a Ph.D. from Imperial College, University of London. He
is a member of the American Association of Petroleum Geologists and
the Petroleum Exploration Society of Great Britain.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019.
For further information, contact:
Reabold Resources plc c/o Camarco
Sachin Oza +44 (0) 20 3757 4980
Stephen Williams
Strand Hanson Limited - Nomad & Financial
Adviser
James Spinney
Rory Murphy
James Dance +44 (0) 20 7409 3494
Stifel Nicolaus Europe Limited - Joint
Broker
Callum Stewart
Simon Mensley +44 (0) 20 7710 7600
Ashton Clanfield
Panmure Gordon - Joint Broker
Hugh Rich
Nick Lovering +44 (0) 207 886 2733
Camarco
James Crothers
Billy Clegg
Rebecca Waterworth +44 (0) 20 3757 4980
About H&P Advisory Limited
H&P Advisory Limited ("Hannam"), which is authorised and
regulated by the FCA in the United Kingdom, is acting exclusively
as financial adviser to Corallian and no one else in connection
with the subject matter of this Announcement, and shall not be
responsible to anyone other than Corallian for providing the
protections afforded to clients of Hannam, or for providing advice
in connection with the subject matter of this Announcement. Neither
Hannam nor any of its subsidiaries, branches or affiliates owes or
accepts any duty, liability or responsibility whatsoever (whether
direct or indirect, whether in contract, in tort, under statute or
otherwise) to any person who is not a client of Hannam in
connection with this Announcement, any statement contained herein
or otherwise.
H&P Advisory Limited
Samuel Merlin
Sean Nash
+44 (0) 20 7907 8500
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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END
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