RCS - Reabold Resources - Reabold North Sea – Presentation on New Licences

Reabold ResourcesAnnouncement

24/05/2022 07:16

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RNS Number : 5208M  Reabold Resources PLC  24 May 2022

24 May 2022

 

Reabold Resources plc

 

("Reabold" or the "Company")

 

 

Reabold North Sea - Presentation on New Licences Detailing Significant
Prospective Resources and Value Creation Opportunities

 

 

Reabold, the AIM quoted investing company, which focuses on investments in
upstream oil and gas projects, is pleased to provide additional details on the
new licences which it is to acquire (the "Acquisition") from Corallian Energy
Limited ("Corallian") for a consideration of £250,000, per the conditional
sale and purchase agreement announced by the Company on 4 May 2022 and further
to the potential sale of the entire issued share capital of Corallian (the
"Potential Sale").

 

This announcement is made in conjunction with the publication of a new
presentation containing further details of these UK offshore exploration and
appraisal licences and is available on the Company's website here:
https://reabold.com/wp-content/uploads/2022/05/Reabold-North-Sea.pdf
(https://reabold.com/wp-content/uploads/2022/05/Reabold-North-Sea.pdf) .

 

 

Key Licence Highlights:

 

The UK offshore portfolio of licences comprises of prospects in three core
areas, all located near existing infrastructure and adjacent to analogue
fields. There are significant prospective resources and opportunities to
create value with a combined estimated net NPV10 of £776 million. The Company
believes that the prospects represent low to moderate geological risk with
relatively low drilling costs.

 

 

·      Inner Moray Firth (Licence P2478) - 36% Working Interest

Dunrobin Prospect

§ Estimated prospective gross Pmean* (#_ftn1) recoverable resource of 173
Mbbls of oil

§ Scoping Pmean economics suggest a gross NPV10 of £1,350 million, (£486
million net to Reabold) based on, inter alia, medium gravity oil and a
US$60/bbl oil price

§ Initial scoping indicative of low drilling cost at £7 million gross

 

Golspie Prospect

§ Gross Pmean prospective resource of 22 Mboe in Jurassic Sandstones

 

·      North West Shetland Basin (Licence P2605) - 100% Working Interest

Laxford Gas Discovery

§ Discovered in 1984

§ Flowed at 17.5 Mscfg/day on test

§ Located 24km northwest of the Victory and 9km North of the Glenlivet gas
field

§ Scoping Pmean economics has unrisked NPV10 of £81 million at 60p/therm gas

 

Scourie Prospect

§ Exhibits similar seismic amplitude anomaly to Glenlivet

§ Pmean economics has unrisked NPV10 of £125 million at 60p/therm gas

 

·      East Shetland Basin (Licence P2464 & P2504) - 100% Working
Interest

Unst and Baliasta

§ Eocene Frigg sandstone prospects which exhibit seismic amplitude anomalies
similar to the nearby Nuggets Fields

§ Low risk, with a geological chance of success of 64% and estimated
prospective Pmean recoverable resource of 68 bcf for Unst

§ Pmean economics has an unrisked NPV10 of £84 million at 60p/therm gas

§ Geological chance of success of 81% and estimated prospective Pmean
recoverable resource of 17 bcf for Baliasta

 

Oulton West Gas

§ Amplitude anomaly in the Eocene Frigg sandstone

§ Prospect being worked up to establish scale of prospective resource and
value

 

 

Summary of Volumetrics and NPVs

 

 Project Area               Licences  Prospects  Gross Pmean Oil Mbbls  Gross Pmean Gas bcf  Gross Pmean Mboe  Gross NPV10 £ Million
 Inner Moray Firth          P2478     Dunrobin   173                                         173               1,350
                            Golspie              22                                          22
 North West Shetland Basin  P2605     Scourie                           107                  17.8              125
                            Laxford                                     81                   13.5              81
 East Shetland Basin        P2464     Unst                              68                   11.3              84
                            Baliasta                                    17                   2.8

 

As per the Company's announcement of 4 May 2022, the SPA with Corallian
remains conditional upon, inter alia, (1) Corallian receiving notice from the
Potential Purchaser that the Potential Sale may proceed to completion and (2)
approval from the North Sea Transition Authority.

 

If the Acquisition does not complete before 31 August 2022, either party may
terminate the SPA and Corallian will be required to repay the Cash
Consideration to Reabold within 90 days.

 

Stephen Williams, Co-CEO of Reabold, commented:

 

"The licences to be acquired from Corallian, at an attractive valuation,
provide Reabold with an exciting set of opportunities to create value. These
licences contain a number of prospects with significant resource potential and
relatively low geological risk."

 

"Reabold believes that it will be in a position to progress these newly
acquired projects thereby playing an important role in delivering the much
needed enhancement of energy security for the UK. We will continue our efforts
to deliver benefits to our stakeholders through our strategy of acquiring,
investing in and unlocking the potential in high quality hydrocarbon
resources."

 

 

 Qualified Person's Statement

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.

 

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      +44 (0) 20 7409 3494

 James Spinney

 Rory Murphy

 James Dance

 Stifel Nicolaus Europe Limited - Joint Broker              +44 (0) 20 7710 7600

 Callum Stewart

 Simon Mensley

 Ashton Clanfield

 Panmure Gordon - Joint Broker                              +44 (0) 207 886 2733

 Hugh Rich

 Camarco                                                    +44 (0) 20 3757 4980

 James Crothers

 Billy Clegg

 Rebecca Waterworth

 

 

 

Glossary

 

bcf                   Billion cubic feet

Mbbls               Million barrels

Mboe                Million barrels of oil equivalent

Mscf                 Million standard cubic feet

Mscfg/day        Million standard cubic feet of gas per day

NPV10              Net Present Value using a 10% discount factor

Pmean             Swanson Mean calculated as P90x0.3 + P50x0.4 +
P10x0.3

P10                  A high estimate that there should be at
least a 10% probability that the quantities recovered will actually equal or
exceed the estimate

P50                  A best estimate that there should be at
least a 50% probability that the quantities recovered will actually equal or
exceed the estimate

P90                  A low estimate that there should be at
least a 90% probability that the quantities recovered will actually equal or
exceed the estimate

 

 

Notes to Editors

 

Reabold Resources plc is an investing company investing in the exploration and
production ("E&P") sector and has a diversified portfolio of assets in
upstream oil & gas projects. Reabold aims to create value from each
project by investing in undervalued, low-risk, near-term projects and by
identifying a clear exit plan prior to investment. 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.

 

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.

 

* (#_ftnref1) Pmean is Swanson Mean calculated as P90x0.3 + P50x0.4 + P10x0.3.

All Pmean, geological chance of success and NPV figures are Reabold's in-house
estimates.

 

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