REG - Reabold Resources - SPA for Sale of Corallian to Shell for £32 million

Reabold ResourcesAnnouncement

05/10/2022 15:45

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RNS Number : 9262B  Reabold Resources PLC  05 October 2022

5 October 2022

 

Reabold Resources plc

 

("Reabold" or the "Company")

 

 

Execution of SPA for Sale of Corallian to Shell for £32 million Gross

 

 

Reabold, the AIM quoted investing company with a portfolio of upstream oil and
gas projects, is pleased to provide the following update on the conditional
sale of its investee company, Corallian Energy Limited ("Corallian" or "CEL")
to Shell U.K. Limited ("Shell"), further to its announcement of 14 September
2022.

 

Reabold is pleased that Shell and Corallian have executed a Sale and Purchase
Agreement ("SPA") for the conditional purchase of the entire issued share
capital of Corallian by Shell. The key terms of the SPA are as detailed in the
Company's announcement of 14 September 2022 and Reabold intends to use the net
proceeds received to advance development of its existing assets, including
West Newton, and assess potential further acquisition opportunities.

 

Further to Reabold's announcements of 15 September 2022, at the time of
completion of the purchase of the entire issued share capital of Corallian by
Shell, Corallian's only asset will be licence P2596, which contains the
Victory gas development opportunity.

 

Corallian expects that completion of the SPA and, therefore, the initial gross
consideration payment of £10 million (c. £3.2 million net to Reabold), will
take place during Q4 of 2022.

 

Stephen Williams, Co-CEO of Reabold, commented:

 

"We are very pleased that Shell has acquired Corallian, and therefore the
Victory asset. We believe such a transaction validates Reabold's strategy of
creating value for shareholders by identifying, funding and monetising
underappreciated, strategically important assets. The net proceeds to be
received will provide Reabold with improved financial flexibility to consider
further acquisition opportunities and develop its existing assets. In
addition, we believe this transaction will result in the production of
indigenous natural gas resources that will enhance the UK's energy security
position."

 

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:

 

 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

 Rory Murphy

 James Dance

 Stifel Nicolaus Europe Limited - Joint Broker              +44 (0) 20 7710 7600

 Callum Stewart

 Simon Mensley

 Ashton Clanfield

 Panmure Gordon - Joint Broker                              +44 (0) 207 886 2733

 Hugh Rich

 Camarco                                                    +44 (0) 20 3757 4980

 James Crothers

 Billy Clegg

 Rebecca Waterworth

 

 

 

Notes to Editors

 

Reabold Resources plc is an investing company investing in the exploration and
production ("E&P") sector and has a diversified portfolio of assets in
upstream oil & gas projects. Reabold aims to create value from each
project by investing in undervalued, low-risk, near-term projects and by
identifying a clear exit plan prior to investment. The Company's investing
policy is to acquire direct and indirect interests in exploration and
producing projects and assets in the natural resources sector, and
consideration is currently given to investment opportunities anywhere in the
world.

 

Reabold's long term strategy is to re-invest capital made through its
investments into larger projects in order to grow the Company. Reabold aims to
gain exposure to assets with limited downside and high potential upside,
capitalising on the value created between the entry stage and exit point of
its projects. The Company invests in projects that have limited correlation to
the oil price.

 

Reabold has a highly-experienced management team, who possess the necessary
background, knowledge and contacts to carry out the Company's strategy.

 

 

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