REG - Reabold Resources - Completion of the Sale of Corallian to Shell

Reabold ResourcesAnnouncement

01/11/2022 13:15

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RNS Number : 9397E  Reabold Resources PLC  01 November 2022

1 November 2022

 

Reabold Resources plc

 

("Reabold" or the "Company")

 

 

Completion of the Sale of Corallian to Shell for £32 million Gross

 

 

Reabold, the AIM quoted investing company with a portfolio of upstream oil and
gas projects, is pleased to provide the following update on the sale of its
investee company, Corallian Energy Limited ("Corallian" or "CEL") to Shell
U.K. Limited ("Shell"), further to its announcement of 5 October 2022.

 

Reabold is pleased to announce the completion of the sale of the entire issued
share capital of Corallian to Shell. The key terms of the SPA are as detailed
in the Company's announcement of 14 September 2022.

 

Corallian expects that payment of the initial gross consideration of £10
million (c. £3.2 million net to Reabold) will be made to Corallian
shareholders (including Reabold) over the coming days.

 

Furthermore, the balance of the total consideration, £22 million (c. £9.5
million net to Reabold), is expected to be made in 2023 as outlined in the
announcement of 14 September 2022.

 

Reabold intends to use the net proceeds received to advance development of its
existing assets, including the drilling of the key horizontal well at West
Newton, and assess potential further acquisition opportunities. Furthermore,
pursuant to the announcement of 31 October 2022, Reabold intends to make a
distribution of £4 million of excess cash to Reabold shareholders upon
receipt of the £9.5 million, the mechanism of which will be determined upon
consultation with Reabold shareholders.

 

Stephen Williams, Co-CEO of Reabold, commented:

 

"We are very pleased that we have been able to successfully sell the Victory
project to Shell. This transaction validates Reabold's strategy of creating
value for shareholders by identifying, funding and monetising
underappreciated, strategically important assets. The net proceeds to be
received will provide Reabold with improved financial flexibility to consider
further acquisition opportunities and develop our existing assets.
Furthermore, upon receipt of the second tranche, Reabold will be funded beyond
its operational requirements and therefore intends to make a distribution of
£4 million to shareholders.  We will consult with shareholders on the
mechanism of such a distribution, including dividends and share buy backs. In
addition, we believe this transaction will result in the production of
indigenous natural gas resources that will enhance the UK's energy security
position, and we are proud of Reabold's role in progressing Victory to this
point."

 

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      +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

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

 Hugh Rich

 Camarco                                                    +44 (0) 20 3757 4980

 James Crothers

 Billy Clegg

 Rebecca Waterworth

 

 

 

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.

 

 

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