REG - Reabold Resources - Investment in LNEnergy

Reabold ResourcesAnnouncement

09/05/2023 07:15

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RNS Number : 6698Y  Reabold Resources PLC  09 May 2023

9 May 2023

Reabold Resources plc

("Reabold" or the "Company")

Investment in LNEnergy

Reabold Resources plc, the oil & gas investing company with a diversified
portfolio of exploration, appraisal and development projects, announces that
it has entered into a conditional subscription and option agreement (the
"Subscription Agreement") with LNEnergy Limited ("LNEnergy") and a conditional
shareholder option agreement with certain existing shareholders of LNEnergy
(the "Shareholder Option Agreement") (together, the "Agreements"). Pursuant to
the terms of the Agreements, Reabold will initially acquire an interest of
3.1% of LNEnergy for cash consideration of £250,000, and receive options to
acquire, at its sole discretion, further shares in LNEnergy which would result
in Reabold holding a 25.0% shareholding in LNEnergy for aggregate cash and
equity consideration of £3.8 million.

LNEnergy's primary asset is an option over a 90% interest in the Colle Santo
gas field, onshore Italy in the Abruzzo region. With 65Bcf of 2P reserves, as
estimated by RPS as of 30 September 2022, this is a highly material
undeveloped onshore gas resource, particularly in the context of onshore
Western Europe, and subject to the necessary approvals and permits, is
development ready with no additional drilling required. First gas is targeted
for early 2025. This project is aligned with Reabold's strategy to help to
progress high quality pre-cash flow projects that can deliver material returns
to shareholders.

Additional Information on the Agreements and LNEnergy

Under the terms of the Subscription Agreement, Reabold has initially
subscribed for 32 new LNEnergy shares (representing 3.1% of LNEnergy's
enlarged share capital) for an aggregate consideration of £250,000 (the
"Initial Subscription"), to be satisfied through existing cash resources. In
addition, Reabold will receive an option to acquire a further 36 new LNEnergy
shares (representing 3.3% of LNEnergy's enlarged share capital at such time)
for an aggregate cash consideration of £500,000 (the "First Option") and a
second option to acquire a further 127 new LNEnergy shares (representing 10.5%
of LNEnergy's enlarged share capital at such time) for an aggregate cash
consideration of £1,800,000 (the "Second Option"), each of which would be
satisfied through existing cash resources in the event that they are
exercised.

In conjunction with the Subscription Agreement, Reabold has entered into the
Shareholder Option Agreement, whereby Reabold will receive an option to
acquire 108 existing LNEnergy shares (representing 10.0% of LNEnergy's
enlarged share capital at such time) from certain LNEnergy shareholders for an
aggregate consideration of £1,500,000, payable through the issue of new
ordinary shares in the capital of the Company (the "Shareholder Option"),
which must be exercised simultaneously with the First Option in order to
enable the First Option to be exercised.

Under the terms of the Agreements, which are inter-conditional, Reabold is
only committed to the Initial Subscription, whereas the First Option,
Shareholder Option and Second Option are all exercisable at the Company's sole
discretion. Should they be exercised, the First Option, Shareholder Option and
Second Option can only be exercised in full. The First Option and Shareholder
Option will expire on 31 May 2023 and the Second Option will expire on 30
November 2023.

LNEnergy was incorporated on 29 September 2021 and has not yet published
accounts. LNEnergy's management accounts to 31 March 2023 stated net assets of
US$503,839 and a loss for the year ended 31 December 2022 of US$597,185.

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:

                                                            c/o Camarco

 Reabold Resources plc                                      +44 (0) 20 3757 4980

 Sachin Oza

 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.

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