REG - Reabold Resources - Further Investment into LNEnergy

Reabold ResourcesAnnouncement

12/09/2023 07:00

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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 £250,000, at a price of £13,889
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 £1,800,000, 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 £4.3 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 €11-12m 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
(http://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      +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.

 

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