REG - Reabold Resources - Update on LNEnergy and the Colle Santo gas field

Reabold ResourcesAnnouncement

07/08/2023 07:00

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RNS Number : 4193I  Reabold Resources PLC  07 August 2023

7 August 2023

Reabold Resources plc

("Reabold" or the "Company")

 

Update on LNEnergy and the Colle Santo gas field approvals process

Reabold Resources plc, the oil & gas investing company with a diversified
portfolio of exploration, appraisal and development projects, is pleased to
provide an update on developments in the approvals process for the onshore
Colle Santo gas field in Abruzzo, Italy.

As announced on 9 May 2023 and 12 June 2023, Reabold has acquired a 16.2%
equity interest in 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 the field is development ready,
subject to approvals and permits. LNEnergy believes that the field has the
potential to generate an estimated €11-12m of post-tax free cash flow per
annum.

As part of the approvals process, LNEnergy has recently received a letter from
the head of the Italian National Bureau of Hydrocarbons and Georesources
("UNMIG"), the minerals division of Italian Ministry of Environment and Energy
Security ("MASE"), which gives permission to carry out well integrity and well
service testing on the two existing wells and to start work on the
installation and commissioning of the monitoring network at the Colle Santo
gas field. The letter is a positive indication of support for the development
of the Colle Santo gas field and the next stage is to receive a formal decree
from MASE to conduct the work.

LNEnergy is seeking a two-year, long-term production test permit which would
significantly de-risk the full concession permit approval to allow for 20+
years of production. The Company expects a decision to be made on the two-year
permit later in 2023.

Sachin Oza, Co-CEO of Reabold, commented:

"It is encouraging to note the favourable indication from UNMIG that early
work on testing and monitoring can begin at the Colle Santo gas field. Our
focus now turns to finalising this stage of the approvals process with a view
to commencing operations later this year once all necessary permits are in
place. We look forward to updating our shareholders with further progress on
the project throughout the year."

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.

 

 1  RPS estimate, September 2022

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