REG - Reabold Resources - Colle Santo Project Enters Operational Phase

Reabold ResourcesAnnouncement

05/09/2023 07:00

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RNS Number : 3436L  Reabold Resources PLC  05 September 2023

5 September 2023

Reabold Resources plc

("Reabold" or the "Company")

 

Colle Santo Project Enters Operational Phase

Reabold Resources plc, the oil & gas investing company with a diversified
portfolio of exploration, appraisal and development projects, is pleased to
provide a further update on developments in the approvals process for the
onshore Colle Santo gas field in Abruzzo, Italy.

Following a review with the heads of Environment, Energy, and Mining of the
Abruzzo Region, the Abruzzo regional government confirmed its agreement with,
and intention to approve, by decree, the Early Production Programme for the
Colle Santo gas field, allowing early revenue generation from the Colle Santo
project.

The Early Production Programme includes the following:

·      Production of gas for a period of 24 months;

·      Conversion of gas to power for sale to the electricity grid; and

·      Renewal of the Abruzzo Region's earlier 24-month test approval
permit.

It is anticipated that the formal decree from the Abruzzo Region will be
provided over the coming months and accordingly, LNEnergy, has entered the
operational phase of development at the Colle Santo gas field.

Once on stream, the generation of electricity during the Early Production
Programme will be from the use of gas turbines, and the electricity will be
tied into a nearby distribution connection point enabling revenue generation.
Much of the equipment that is needed for the electricity generation is
available locally and can be provided on a rental basis, minimising the
capital required.

In addition to providing valuable accelerated cash flow, the Early Production
Programme and associated monitoring will facilitate completion of the work
required by the VIA Commission for the granting of the full development
concession for the Colle Santo gas field.

As announced on 9 May 2023 and 12 June 2023, Reabold acquired a 16.2% equity
interest in LNEnergy, whose 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  (#_ftn1) ,
with two production wells already drilled and the field is development ready.
LNEnergy believes that the field has the potential to generate an estimated
€11-12m of post-tax free cash flow per annum.

Stephen Williams, Co-CEO of Reabold, commented:

"We are pleased with the speed and efficiency of the regulatory process in the
Abruzzo Region to date and delighted to reach this stage of the Early
Production Programme. We can see a clear pathway to generating revenue from
gas to power in the near-term, and we believe this news considerably de-risks
the granting of the full concession to LNEnergy and the small scale LNG
project. Italy needs domestic energy supply to keep prices lower. We look
forward to updating shareholders with further progress on the Colle Santo
development."

 

(1) RPS estimate, September 2022

A further announcement will be made as and when appropriate.

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

 finnCap Ltd - Joint Broker                                 +44 (0) 20 7220 0500

 Christopher Raggett

 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.

 

(#_ftnref1)

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