Reabold Resources - Colter South Oil Discovery and Forward Plan
Released
Released
Announcement PDF
RNS Number : 9376Q
Reabold Resources PLC
25 February 2019
25 February 2019
Reabold Resources Plc
("Reabold" or the "Company")
Colter South Oil Discovery and Forward Plan
Highlights:
· Oil discovery at Colter South - a significant milestone
· Side-track planned to test principal Colter target
· Reabold increasing investment in Corallian
Colter Well Update
Corallian Energy Limited ("Corallian"), has today provided the following
update in relation to the Colter appraisal well:
The Colter well (98/11a-6) has been drilled as a vertical well with the Ensco72 jack-up rig and has reached a Total Depth of 1,870m MD in the Sherwood
Sandstone. The well is an appraisal of the 98/11-3 well, drilled in 1986 by
British Gas, within the Colter Prospect.
The 98/11a-6 well unexpectedly remained on the southern side of the Colter
Prospect bounding fault but encountered oil and gas shows over a 9.4m
interval at the top of the Sherwood Sandstone reservoir. A petrophysical
evaluation of the LWD data has calculated a net pay of 3m. Similar
indications of oil and gas were encountered in the 98/11-1 well, drilled in
1983 by British Gas, within the Colter South fault terrace. Provisional
analysis of the new data indicates that the two wells may share a common
oil-water-contact having both intersected the down-dip margin of the Colter
South prospect. Corallian's most recent assessment of the Colter South
Prospect prior to drilling the 98/11a-6 well had estimated a mean
recoverable volume of 15 mmbbls. Further work will be required to refine
this assessment with the new well data.
The joint venture has commenced preparations to side-track the 98/11a-6
well. The side-track will be drilled directionally to a Sherwood Sandstone
target within the Colter prospect on the northern side of the bounding fault
and is expected to take approximately 2 weeks to complete.
It is encouraging that the well has confirmed a discovery in the Colter South
Prospect. More work will be required to determine the resource potential
within the structure and we look forward to the results of the side-track to
evaluate the Colter Prospect.
Further Investment in Corallian
Reabold has secured an additional equity investment into Corallian, by way
of an Advanced Subscription Agreement, whereby Reabold will invest
£750,000, priced at a 30% discount to the next Corallian fundraise. This
investment will cover Corallian's expected costs in relation to the side-track to
appraise the principle Colter oil discovery.
Stephen Williams, Co-CEO of Reabold, commented:
"We are very pleased to have encountered pay within the Colter South fault block
which would add significant volumes to those which we hope to encounter
within the Colter fault block following the side-track."
Sachin Oza, Co-CEO of Reabold, commented:
"Our ability to both fund the side-track and increase our exposure to the exciting
Corallian portfolio is testament to the strength of the Reabold balance sheet and
our strategy to opportunistically use cash to pursue high impact assets on
favourable terms."
This announcement contains inside information for the purposes of Article 7 of EU Regulation
596/2014.
ENDS
For further information please contact:
Reabold Resources plc
Stephen Williams
Sachin Oza
c/o Camarco
+44 (0) 20 3781 8331
Strand Hanson Limited (Nominated and Financial
Adviser)
Rory Murphy
James Spinney
James Dance
+44 (0)20 7409 3494
+44 (0) 20 3781 8331
Camarco
James Crothers
Ollie Head
Billy Clegg
Whitman Howard Limited - Joint Broker
+44 (0) 20 7659 1234
Nick Lovering
Grant Barker
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker
+44 (0) 20 3621 4120
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the
Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions
relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com or visit www.rns.com.
END
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