REG - Reabold Resources - Further Investment into LNEnergy

Reabold ResourcesAnnouncement

17/11/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231117:nRSQ7593Ta&default-theme=true

RNS Number : 7593T  Reabold Resources PLC  17 November 2023

17 November 2023

 

Reabold Resources plc

 

("Reabold" or the "Company")

 

Further Investment into LNEnergy

 

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 agreed to increase its interest in LNEnergy
Limited ("LNEnergy") by 0.8% through a partial exercise of the Second
Option, whereby the Company has subscribed for 11 new ordinary shares in
LNEnergy's share capital for a cash consideration of £150,000 (the "Partial
Exercise"). The Partial Exercise has been executed pursuant to an amendment of
the Second Option agreement between LNEnergy and the Company, which will be
funded by Reabold from its existing cash resources. This will take Reabold's
shareholding in LNEnergy to approximately 18.4% of LNEnergy's enlarged share
capital.

 

The Company will retain the right, at its sole discretion, to invest a further
£1,650,000 under the Second Option, as announced on 9 May 2023 and 12
September 2023, in share capital of LNEnergy which, if exercised by Reabold,
would result in the Company holding a 26.1% interest in the enlarged share
capital of LNEnergy.

 

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 flow-tested, making 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 on its website at the following hyperlink:
www.reabold.com/investors/reports-presentations
(http://www.reabold.com/investors/reports-presentations)

 

The cash proceeds received by LNEnergy from the Partial Exercise will be used
to accelerate the work programme at the Colle Santo gas project. Reabold's
additional investment through the Partial Exercise will increase its exposure
to this material gas resource, as well as progressing the work programme
associated with the early production programme.

 

 

Sachin Oza, Co-CEO of Reabold, commented:

 

"We are delighted once again to be able to further increase our interest in
LNEnergy, and therefore our exposure to the Colle Santo gas project. Colle
Santo holds significant gas reserves and can be a valuable source of domestic
energy supply for Italy. We are pleased with the progress that has been made
so far, including the recent Letter of Intent signed between LNEnergy and the
Italian EPC company to provide vendor financing for the project, thereby
substantially reducing the upfront capex for the development. We look forward
to updating our shareholders as the project progresses."

 

(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".

 

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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAAFKFFLDFAA