REG - Reabold Resources - Victory – Submission of Draft FDP

Reabold ResourcesAnnouncement

23/12/2021 07:00

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RNS Number : 5396W  Reabold Resources PLC  23 December 2021

23 December 2021

Reabold Resources plc

("Reabold" or the "Company")

Victory - Submission of Draft Field Development Plan

 

Reabold, the AIM investing company focused on upstream oil and gas projects,
is pleased to provide an update on the Victory Gas Discovery ("Victory"),
which is located ca. 50 kilometres northwest of the Shetland Isles. Reabold
has a 49.99 per cent. interest in Corallian Energy Limited ("Corallian"),
which has a 100 per cent. interest in Victory and is the operator of the
asset.

 

As communicated to its shareholders, Corallian has confirmed that it has
submitted a draft Field Development Plan ("FDP") for the Victory gas field to
the Oil and Gas Authority ("OGA"). The related Environmental Statement for
Victory is expected to be finalised during Q1 2022 and will be issued to the
department for Business, Energy and Industrial Strategy's ("BEIS") Offshore
Petroleum Regulator for Environment & Decommissioning ("OPRED"), as part
of the FDP approval process.

 

It is anticipated that the FDP will be reviewed by the OGA during H1 2022, and
that approval will be sought towards the end of 2022, concurrent with the
Final Investment Decision ("FID") for the project.

 

Further to the Company's announcement on 20 October 2021, progress continues
to be made on the strategic review of Corallian and an update on the process
is expected during Q1 2022.

 

 

Competent Persons Report on Victory Project

A Competent Persons Report ("CPR"), recently completed by RPS Energy Limited
("RPS") following the finalisation of both static and dynamic modelling,
together with well / network optimisation studies for the development,
estimates a total Victory field 2C or best / mid
case technically recoverable resource of 179bcf dry gas1.

 

Corallian's 2C economic valuation (NPV10) of Victory, based on an historical
average gas price valuation of 50p/therm is £193 million.

 

Sachin Oza, Co-CEO of Reabold, commented:

"Submission of a draft Field Development Plan is a significant milestone for
this important gas field. Victory is in relatively shallow water, close to
pre-existing subsea infrastructure, allowing a cost-effective tie-back
solution. It is fully appraised and requires no additional pre-development
drilling. A recently compiled CPR has ascribed recoverable resources of
179bcf(1) of dry gas to the field, which is situated in an area of significant
infrastructure, meaning its development is expected to be simple whilst
providing meaningful gas resource to the UK.

 

"This is an important period for Reabold's interest in the Victory Gas
project, and we look forward to providing further updates on the project in
the near future."

 

 1   the 2C or best / mid case technically recoverable contingent
resources estimate is a Corallian derived aggregate of "contingent resources -
development pending" (145bcf) and "contingent resources - development
unclarified" (34bcf)" from the RPS CPR (dated October 2021).

 

 

 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

 Nick Lovering

 Camarco                                                    +44 (0) 20 3757 4980

 James Crothers

 Rebecca Waterworth

 Billy Clegg

 

 

Notes to Editors

 

Reabold Resources plc is an investing company investing in the exploration and
production ("E&P") sector. 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.

 

As an investor in upstream oil & gas projects, Reabold aims to create
value from each project by investing in undervalued, low-risk, near-term
upstream oil & gas projects and by identifying a clear exit plan prior to
investment.

 

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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