REG - Reabold Resources - £5.2 million received for the sale of Corallian

Reabold ResourcesAnnouncement

05/12/2023 07:15

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RNS Number : 6377V  Reabold Resources PLC  05 December 2023

5 December 2023

 

Reabold Resources plc

 

("Reabold" or the "Company")

 

£5.2 million received from Shell for the sale of Corallian

 

Reabold Resources plc, the oil & gas investing company with a diversified
portfolio of exploration, appraisal and development projects, is pleased to
announce that it has been informed that the next tranche of the payment from
Shell U.K. Limited ("Shell") for the sale of the entire issued share capital
of Corallian Energy Limited ("Corallian"), as announced on 1 November 2022,
will be distributed to former Corallian shareholders from today.

 

Reabold will receive £5.2 million for the second tranche, which follows the
£3.2 million received by the Company on 1 November 2022. As previously
announced, the final consideration payment, of £4.4 million, will be received
upon the NSTA granting development approval for the Victory gas field, which
is anticipated to occur within the coming months.

 

Reabold intends to use the proceeds received to advance the development of
assets across its portfolio, including the drilling of the key horizontal well
at West Newton and the acceleration of the work programme at the Colle Santo
gas project in Italy, as well as distributing excess cash to shareholders, as
announced on 1 November 2022.

 

Reabold is pleased to see Shell committing to continue development of the
Victory project which will play a key role in the UK's attempts to improve
energy security during the transition to net zero, and the Company is glad to
have played a significant role in bringing this project to life.

 

Reabold aims to replicate its success with the Victory project across the
other key assets in its portfolio.  Most notably, both West Newton and Colle
Santo are significant gas resources, which like Victory, can make a meaningful
contribution to improved energy security in Western Europe.

 

Stephen Williams, Co-CEO of Reabold, commented:

 

"We are delighted to receive the second tranche of the payment from Shell. The
sale of the Victory project last year was a significant moment in Reabold's
history, proving our strategy to create value for shareholders by identifying,
funding and monetising underappreciated but strategically important assets.
Reabold played a key role in the development of the Victory project, which
will be an important asset to the UK as it looks to increase domestic gas
supply.

 

"Now with a strong funding position, we look forward to progressing the other
projects in our portfolio whilst also distributing capital to reward
shareholders for their ongoing support of Reabold."

 

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.

 

Ends

 

 

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

 James Dance

 Rob Patrick

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

 Callum Stewart

 Simon Mensley

 Ashton Clanfield

 Cavendish - Joint Broker                                   +44 (0) 20 7220 0500

 Barney Hayward

 Camarco                                                    +44 (0) 20 3757 4980

 Billy Clegg

 Rebecca Waterworth

 Sam Morris

 

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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