REG - Reabold Resources - High-grading of North Sea Licences

Reabold ResourcesAnnouncement

12/07/2023 07:00

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RNS Number : 6976F  Reabold Resources PLC  12 July 2023

12 July 2023

Reabold Resources plc

 

("Reabold" or the "Company")

 

High-grading of North Sea Licences

 

Reabold Resources plc, the oil & gas investing company with a diversified
portfolio of exploration, appraisal and development projects, is pleased to
provide details of the high-grading exercise of its North Sea licences, in the
context of the Company's ongoing disciplined approach to capital allocation,
which has led to the prioritisation of the highest potential return assets in
the Board's view.  As a reminder, the Northern North Sea basket of Licences
was acquired for £0.25 million, effective May 2022, and the Southern North
Sea basket of licences was acquired for c.£1 million in January 2023, as part
of the Company's acquisition of Simwell Resources Limited.

 

Reabold Northern North Sea

The Company is pleased to announce that it has successfully been granted an
extension until July 2025 for licence P2478 (Dunrobin and Golspie, 36% working
interest), which has aggregate gross unrisked 1  (#_ftn1) Pmean prospective
resources of 201 mmboe (197 Mbbls + 24bcfg) 2  (#_ftn2) .

 

In addition, licences P2605 (Laxford and Scourie) P2504 (Oulton and Oulton
West) (both 100% working interest) have been retained as we continue the
farm-out process, prior to a drill or drop decision by November 2024. These
licences have aggregate gross unrisked Pmean prospective oil resources of 38
Mbbls(3) and aggregate gross unrisked Pmean prospective gas resources of 148
Bscf(3), in addition to 11Mbbls of oil and 15 bcfg 2C contingent resources
(11.1 Mbbls + 3.6 bcfg in Oulton and 11bcfg on block in Laxford).

 

Licences P2396 (Curlew-A), P2464 (Quoys and Unst), P2493 (Sandvoe) (all 100%
working interest) have been or are due to be relinquished shortly.

 

Reabold Southern North Sea

In Reabold's Southern North Sea portfolio, licence P2486 has been retained as
the operator continues the farm-out process, prior to a drill or drop decision
by July 2024.

 

Shell, the operator of licence P2332, which is adjacent to the licence
containing the Pensacola well, made a decision to relinquish the licence.
Licences P2329 and P2427 have been or are due to be relinquished shortly.

 

The work undertaken on all our Southern North Sea licences has provided the
Company with valuable data and added to our understanding of the Zechstein
play, which is fundamental to our West Newton and Crawberry Hill assets
onshore.

 

 

 

 

Sachin Oza, Co-CEO of Reabold, commented:

 

"With an abundance of value opportunities within Reabold, the high-grading of
our recently acquired North Sea licence portfolio is driven by the Board's
disciplined financial framework, where the highest return opportunities have
been prioritised.  We will look to farm down these high-graded assets to help
fund the de-risking and value creation process."

 

 

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

 

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.

 

Glossary of Technical Terms

 

mmboe
                Million barrels of oil equivalent.

 

Mbbl
                Million barrels.

 

Bcfg
                Billion cubic feet of gas.

 

Pmean
Reflects a mid-case volume estimate of resource derived using probabilistic
methodology. This is the mean of the probability distribution for the resource
estimates and may be skewed by resource numbers with relatively low
probabilities.

 

Prospective Resources                  Those quantities of
petroleum estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development projects.

 

2C
Denotes best estimate of Contingent Resources.

 

Contingent Resources                   Those quantities of
petroleum estimated, as of a given date, to be potentially recoverable from
known accumulations by application of development projects, but which are not
currently considered to be commercially recoverable owing to one or more
contingencies.

 1  (#_ftnref1) The unrisked aggregation was performed by the Company and
assumes that all prospects at all levels are successful.

 2  (#_ftnref2) Refer to the Company's announcement of 16 February 2023. The
CPR reports oil and gas Prospective Resources. The oil equivalent value of the
gas resources has been estimated by the Company using a factor of 5.8bcf per
mmboe.

(3) Pmean totals are by arithmetic summation (in-house). Refer to the
Company's announcement of 28 April 2023.

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