REG - Reabold Resources - Further Investment into LNEnergy

Reabold ResourcesAnnouncement

11/12/2023 07:00

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RNS Number : 2483W  Reabold Resources PLC  11 December 2023

11 December 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 exercised the Second Option to subscribe for 116 new
ordinary shares in LNEnergy Limited ("LNEnergy") through an aggregate further
investment of £1,650,000. Reabold will fund £750,000 of this from its
existing cash resources, while the remaining £900,000 will be satisfied
through the issue of 486,486,487 new ordinary shares of 0.1p each in the
capital of the Company ("Ordinary Shares") at a price of 0.185 pence per share
to LNEnergy Limited (the "Consideration Shares"). This increases Reabold's
shareholding in LNEnergy to 26.1% of its enlarged share capital.

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.

 

Colle Santo update

The University of Chieti-Pescara of the Region of Abruzzo announced the
formation of a Technical Scientific Committee (the "Committee") on 17 November
2023 in support of the development of the Colle Santo Gas Field in Abruzzo,
Italy.

The Committee will work in collaboration with LNEnergy's technical and
engineering advisors, Italfluid, to provide third party expert support in the
evaluation of data to be collected in advance and during LNEnergy's proposed
controlled long-term test and monitoring campaign., .

 

The presence of Italfluid's substantial expertise in field development, local
and regional authorities and in particular representatives of the Engineering
and Geology Department of the University of Chieti-Pescara (leading experts in
the subsurface of the Abruzzo Region) is a material step forward in LNEnergy's
ongoing concession authorization work.

 

 

Sachin Oza, Co-CEO of Reabold, commented:

 

"Reabold is excited by the potential of the Colle Santo project and confident
in its decision to invest further in LNEnergy. The formalisation of the
Technical Scientific Committee at the University of Chieti-Pescara shows
constructive local stakeholder  engagement in  the Colle Santo project and
follows on from positive regulatory progress taking place at a government
level, as Italy looks to secure domestic energy supply. We look forward to
updating shareholders on our progress in Italy as we develop this important
regional project."

 

(1) RPS estimate, September 2022

 

Admission and total voting rights

 

Application has been made for admission of the 486,486,487 Consideration
Shares to trading on AIM ("Admission") and it is expected that Admission will
occur at 8.00 a.m. on or around 12 December 2023. The Consideration Shares
will rank pari passu with the existing Ordinary Shares.

 

Following Admission, the total issued share capital of the Company will
consist of 10,363,112,370 Ordinary Shares. The Company holds 111,572,837
Ordinary Shares in treasury. Accordingly, on Admission, the total number of
voting rights in the Company will be 10,251,539,533 and this is the figure
that may be used by shareholders as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or
a change in their interest in, the share capital of the Company under the
FCA's Disclosure Guidance and Transparency Rules.

 

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.

 

 

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