REG - Reabold Resources - Italian Government Decree on Energy Sector

Reabold ResourcesAnnouncement

01/12/2023 07:00

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RNS Number : 2732V  Reabold Resources PLC  01 December 2023

1 December 2023

 

Reabold Resources plc

 

("Reabold" or the "Company")

 

Italian Government Decree on Energy Sector

 

Reabold Resources plc, the oil & gas investing company with a diversified
portfolio of exploration, appraisal and development projects, is pleased to
note that the Italian Government has approved a decree to boost the country's
renewable energy production and energy security at the meeting of the Council
of Ministers held on 27 November 2023 (the "Decree").

 

The Decree provides incentives to build plants for energy production from
renewable sources, such as the liquefaction of natural gas; the release of new
licences for the exploitation of gas fields aimed at providing gas to
industries with high gas consumption, at competitive prices; incentives for
LNG terminals and incentives for carbon dioxide storage programmes. The Decree
is already in force and Italy's Parliament has 60 days to ratify it into a
definitive law.

 

Reabold holds an 18.4% in interest in LNEnergy Limited ("LNEnergy"), whose
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.

 

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

 

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) .

 

Stephen Williams, Co-CEO of Reabold, commented:

 

"The regulatory environment in Italy is looking increasingly promising. With
the Colle Santo gas field, we have an asset that can help Italy improve its
energy security and provide a much needed domestic energy supply to the
country. We look forward to updating shareholders with our progress."

 

(1) RPS estimate, September 2022

 

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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