Reabold Resources PLC Further Investment into LNEnergy (0734M)
12 September 2023 - 4:00PM
UK Regulatory
TIDMRBD
RNS Number : 0734M
Reabold Resources PLC
12 September 2023
12 September 2023
Reabold Resources plc
("Reabold" or the "Company")
Further Investment into LNEnergy to Facilitate Accelerated Work
Programme
Reabold Resources plc, the oil & gas investing company with
a diversified portfolio of exploration, appraisal and development
projects , is pleased to announce that the Company has agreed to
increase its interest in LNEnergy Limited ("LNEnergy") by a further
1.6%, through the subscription of 18 new ordinary shares for a cash
consideration of GBP250,000, at a price of GBP13,889 per share,
funded from existing cash resources (the "Investment"). This takes
Reabold's total shareholding to approximately 17.6% of LNEnergy's
enlarged share capital.
The Company still holds the Second Option, now expiring 29
December 2023, for the Company to acquire, at its sole discretion,
a further 127 new ordinary shares in LNEnergy for cash
consideration of GBP1,800,000, as announced on 9 May 2023. If the
Second Option is exercised, it would result in Reabold holding an
aggregate 26.1 % interest in the enlarged share capital of LNEnergy
for a total cash and equity consideration of GBP4.3 million.
The Investment follows Reabold's acquisition of a 16.2% equity
interest in LNEnergy, as announced on 9 May 2023 and 12 June 2023.
LNEnergy's primary asset is an exclusive option over a 90% interest
in the Colle Santo gas field. The Colle Santo gas field is a highly
material gas resource with an estimated 65Bcf of 2P reserves([1]) ,
with two production wells already drilled and the field development
ready. LNEnergy believes that the field has the potential to
generate an estimated EUR11-12m of gross post-tax free cash flow
per annum.
Reabold has published a competent person's report in relation to
Colle Santo, which can be found here:
www.reabold.com/investors/reports-presentations
The Investment follows the announcement made by the Company on 5
September 2023, which noted that the Colle Santo project had
entered the operational phase after receiving confirmation from the
Abruzzo regional government of its agreement with, and intention to
approve, by decree, the Early Production Programme for the Colle
Santo gas field, which would allow early revenue generation from
the Colle Santo project. Reabold's additional investment provides
increased exposure to this material gas resource, as well as
facilitating the first stages of the accelerated work programme
associated with the Early Production Programme.
Additional Information
As part of the Investment, LNEnergy has agreed to appoint Sachin
Oza, Co-CEO of Reabold, as a board observer. Reabold is entitled to
appoint one person to act as a board observer provided that the
Company is interested in 10% or more of LNEnergy's issued share
capital.
As at 30 September 2022, LNEnergy reported unaudited net assets
of US$746,034. LNEnergy's financial statements for the year ended
30 September 2022 did not include income statement items; however,
its management accounts reported a loss for the year ended 31
December 2022 of US$597,185.
Stephen Williams , Co-CEO of Reabold, commented:
"Following the positive permitting progress on the Colle Santo
gas field announced last week and the subsequent acceleration of
the work programme in Italy, we are delighted to be able to further
increase our interest in LNEnergy. The 65Bcf field is development
ready and is expected to generate significant cash flow once on
stream, whilst providing crucial domestic energy resource for
Italy."
(1) RPS estimate, September 2022
Unless otherwise defined, capitalised terms used in this
announcement have the same meanings as ascribed to them in the
Company's announcement of 9 May 2023 entitled "Investment in
LNEnergy".
This announcement contains inside information for the purposes
of the UK version of the market abuse regulation (EU No. 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018, as amended.
For further information, contact:
Reabold Resources plc c/o Camarco
Sachin Oza +44 (0) 20 3757 4980
Stephen Williams
Strand Hanson Limited - Nominated &
Financial Adviser
James Spinney
James Dance
Rob Patrick +44 (0) 20 7409 3494
Stifel Nicolaus Europe Limited - Joint
Broker
Callum Stewart
Simon Mensley +44 (0) 20 7710 7600
Ashton Clanfield
finnCap Ltd - Joint Broker
Christopher Raggett
Barney Hayward +44 (0) 20 7220 0500
Camarco
Billy Clegg
Rebecca Waterworth
Sam Morris +44 (0) 20 3757 4980
Notes to Editors
Reabold Resources plc has a diversified portfolio of
exploration, appraisal and development oil & gas projects.
Reabold's strategy is to invest in low-risk, near-term projects
which it considers to have significant valuation uplift potential,
with a clear monetisation plan, where receipt of such proceeds will
be returned to shareholders and re-invested into further growth
projects. This strategy is illustrated by the recent sale of the
undeveloped Victory gas field to Shell, the proceeds of which are
being returned to shareholders and re-invested.
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END
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