Reabold Resources - Further Investment into LNEnergy
Released
Released
Announcement PDF
RNS Number : 7593T
Reabold Resources PLC
17 November 2023
17 November 2023
Reabold Resources plc
("Reabold" or the "Company")
Further Investment into LNEnergy
Reabold Resources plc, the oil & gas investing company with a diversified portfolio of exploration, appraisal and
development projects, is pleased to announce that it has agreed to increase its interest in LNEnergy
Limited ("LNEnergy") by 0.8% through a partial exercise of the Second Option, whereby the Company has
subscribed for 11 new ordinary shares in LNEnergy's share capital for a cash consideration of £150,000 (the "Partial
Exercise"). The Partial Exercise has been executed pursuant to an amendment of the Second Option agreement
between LNEnergy and the Company, which will be funded by Reabold from its existing cash resources. This will
take Reabold's shareholding in LNEnergy to approximately 18.4% of LNEnergy's enlarged share capital.
The Company will retain the right, at its sole discretion, to invest a further £1,650,000 under the Second Option, as
announced on 9 May 2023 and 12 September 2023, in share capital of LNEnergy which, if exercised by Reabold,
would result in the Company holding a 26.1% interest in the enlarged share capital of LNEnergy.
LNEnergy's 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.
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
The cash proceeds received by LNEnergy from the Partial Exercise will be used to accelerate the work programme
at the Colle Santo gas project. Reabold's additional investment through the Partial Exercise will increase its
exposure to this material gas resource, as well as progressing the work programme associated with the early
production programme.
Sachin Oza, Co-CEO of Reabold, commented:
"We are delighted once again to be able to further increase our interest in LNEnergy, and therefore our exposure to the
Colle Santo gas project. Colle Santo holds significant gas reserves and can be a valuable source of domestic energy supply
for Italy. We are pleased with the progress that has been made so far, including the recent Letter of Intent signed between
LNEnergy and the Italian EPC company to provide vendor financing for the project, thereby substantially reducing the
upfront capex for the development. We look forward to updating our shareholders as the project progresses."
1 RPS estimate, September 2022
Unless otherwise defined, capitalised terms used in this announcement have the same meanings as ascribed to them in the
Company's announcement of 9 May 2023 entitled "Investment in LNEnergy".
Ends
For further information, contact:
Reabold Resources plc
Sachin Oza
Stephen Williams
c/o Camarco
+44 (0) 20 3757 4980
Strand Hanson Limited - Nominated & Financial
+44 (0) 20 7409 3494
Adviser
James Spinney
James Dance
Rob Patrick
Stifel Nicolaus Europe Limited - Joint Broker
Callum Stewart
Simon Mensley
Ashton Clanfield
Cavendish - Joint Broker
Barney Hayward
Camarco
Billy Clegg
Rebecca Waterworth
Sam Morris
+44 (0) 20 7710 7600
+44 (0) 20 7220 0500
+44 (0) 20 3757 4980
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 reinvested 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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