Our investment proposition – extended version (3m8s)
Reabold Resources is an investor in near-term, high growth upstream oil & gas projects where an injection of its capital facilitates near-term activity.
Each investment the Company makes must have low drilling risk and a clear exit strategy. Examples of this investing strategy can be seen on the ‘Our Projects’ page.
Reabold invests in operating companies whose main value driver is the oil & gas asset of interest. Reabold can thereby run a low-cost, non-operator business model where the monetisation versus the entry price of the oil & gas projects in which it invests will be the key determinant of value. Monetisation of investments depends on the extent of any success and market conditions. Potential methods of monetisation include an asset sale, IPO or putting the asset into production.
The Company only invests in projects which meet its stringent requirements:
Reabold exclusively invests in projects that are substantially de-risked from a technical perspective. Each project must have existing regional production and historic discovery wells nearby or on the asset. Each asset must also possess sufficient running room to turn initially small projects into substantial regional businesses.
Each project must deliver extremely attractive returns at current and lower commodity price levels. Reabold seeks robust, fast cycle projects that require low capital expenditure and have limited geopolitical risks.
The returns provided by investments are key for Reabold. Before investing a project must demonstrate the potential to deliver high returns over a short time frame and the opportunity to scale up and increase project returns beyond our initial project period.
In order to maximise the return profile, identifying the optimal time to exit a project is critical to Reabold’s strategy. Doing so effectively will allow the Company to scale and attract more capital over time. Monetisation of investments depends on the extent of any success and market conditions. Potential methods of monetisation include an asset sale, IPO or putting the asset into production.
Unlocking Value in the E&P cycle
Reabold offers investors the opportunity to focus on the “Appraisal” part of the value chain of an upstream oil & gas project. This carries significantly lower risk than early stage exploration and a much greater uplift potential than development and production.
By providing funding to catalyse the progression of high quality projects, we make possible a significant return in project value over a short period of time.